Tract 1, comprising seventeen (17) parcels of land, as described below, and containing 9,778.40 acres, will be bid upon as a drilling and development unit but will be leased as seventeen (17) separate oil and gas leases. Click here to view a sample Lease Form. The minimum bonus consideration that will be accepted for Tract 1 will be $10,500,000, for an average of $1,073.80/net acre. The minimum bonus consideration paid includes the prepaid delay rental and the legally required 1.5% special sale fee; One year primary term; Royalty rate of 25%; A well shall be spudded on one of the leases on or before January 31, 2017, and said well shall be drilled as a horizontal well to a depth sufficient to test the Lower Spraberry Formation. Click here to view a Technical Overview of subject acreage.

Upon the awarding of the oil and gas leases to the successful bidder, University Lands will form a Drilling and Development Unit covering tracts listed below that provides for a four (4) year term upon Lessee’s submission of the required “Application to Pool/Unitize Leases,” associated documents, and the required Application Fee, prior to generating the Agreement. Beginning January 1, 2018, Lessee shall drill a minimum of four (4) horizontal wells during the calendar year. Beginning January 1, 2019, Lessee shall drill a minimum of twelve (12) horizontal wells during the calendar year. Beginning January 1, 2020, Lessee shall drill a minimum of twelve (12) horizontal wells during the calendar year.

As part of the Drilling and Development Unit Agreement (the DDU) terms, University Lands will consider negotiating adjustments to the 2018, 2019 and 2020 continuous drilling obligations within the DDU if the posted price of West Texas Intermediate (WTI) averages less than $55.00/BO during a six (6) month calendar period as the term of the Agreement continues.

SUMMARY

Click here to view full screen

Click here to view full screen

GIS data in the form of a shapefile is available for this lease sale. Click here to download.

Please be advised that the information contained herein is for REFERENCE USE ONLY and is not suitable for legal, engineering, or surveying purposes. Neither University Lands nor EnergyNet.com shall be liable for any direct, indirect or consequential damages to any party arising out of or in connection with the use of data contained herein.

Permits to Drill Filed During the Past 365 Days

Click here to view full screen

Drilling Rigs on Location

Click here to view full screen

The Board for Lease of University Lands has provided a GIS map viewer, which can be viewed by clicking on the following link: http://gis.utlands.utsystem.edu/LeaseSaleApp/. For more information on offset activity zoom in until sections are visible and click on the section you are interested in, and then click the "More Info" link.

The well information available through the GIS viewer includes well logs and regulatory filings as reflected by the following links covering two (2) offsetting wells directly south of the subject acreage:

UL "6-21" Unit #5H - Operated by SM Energy Company
http://www.utlands.utsystem.edu/Wells/WellInfo.aspx?API=4200346529

UL "6-21" Unit #6H - Operated by SM Energy Company
http://www.utlands.utsystem.edu/Wells/WellInfo.aspx?API=4200346163

Click on the following link for scans of area logs:
ftp://publicftp.utlands.utsystem.edu/ScannedLogs/LeaseSale126/

Upon the bid period closing at 10:00 a.m. CST on February 16, 2016, the following steps will occur: