Santa Fe Energy Trust Announces Review of Royalty Payments

  
    
  
  
    
      Santa Fe Energy Trust (NYSE:SFF) announced today that in connection with 
      a review of properties in which the Trust has an interest in preparation 
      for a sale of those interests, the Trustee has been informed by Devon 
      Energy Corporation that Devon believes it may have overpaid the Trust 
      during 2006 and prior years for net profits royalties. Although 
      Unitholders would not be required to return any overpayments they may 
      have received, any such overpayments could, depending on the facts, 
      reduce future royalty payments, and could affect the amounts the Trust 
      would realize upon the sale of its net profit royalties upon the sale of 
      the properties.
    
    
      Devon has cautioned the Trust that Devon is still in the process of 
      attempting to determine whether it believes it actually overpaid the 
      Trust, and if so, by how much. Devon has informed the Trustee that at 
      this time no reliable estimate of the amount of the potential 
      overpayments, if any, can be made.
    
    
      Based on this preliminary information, the Trustee has determined to 
      retain an independent consulting firm to review Devon's records 
      regarding the net profits royalties. Because of the number of properties 
      in which the Trust has an interest, the Trustee anticipates that an 
      independent review of Devon's records will take a significant amount of 
      time. As a result, it appears unlikely that the Trust will be able to 
      file its Annual Report on Form 10-K for the year ended 2006 on a timely 
      basis.
    
    
      Certain statements contained in this Form 8-K include statements that 
      are “forward-looking statements,” 
      including all statements regarding future royalty payments to the Trust, 
      potential overpayments to the Trust, the possibility that future 
      payments to the Trust may be reduced, the sale of the interests held by 
      the Trust, and the actions that Devon, the Trust or the Trustee may take 
      in the future. You are cautioned not to place undue reliance on 
      these forward-looking statements, which speak only as of their dates. 
      The Trust undertakes no obligation to publicly update or revise any 
      forward-looking statements, whether as a result of new information, 
      future events or otherwise. Additional information regarding factors 
      that could materially affect results and the accuracy of the 
      forward-looking statements contained herein may be found in the Trust’s 
      Annual Report on Form 10-K for the year ended December 31, 2005 and in 
      the Trust’s Quarterly Report on Form 10-Q for 
      the quarter ended September 30, 2006.