Tract 1, comprising eighteen (18) parcels of land, as described below, and containing 10,851.926 acres, will be offered for bid as a drilling and development unit but will be leased under eighteen (18) 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 $4,500,000.00 for an average of $414.67/net acre. The minimum bonus consideration paid includes the prepaid delay rental and the legally required 1.5% special sale fee; Five (5) year primary term; Royalty rate of 20%; A well shall be spudded on one of the leases on or before September 30, 2017.

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 five (5) 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. Lessee must commence spudding of initial well on or before September 30, 2017, drill two (2) additional wells in 2018, drill four (4) additional wells in each calendar year for 2019, 2020, 2021, 2022, and 2023. Lessee shall drill five (5) additional wells in each calendar year for 2024 & 2025, and five (5) additional wells for the nine (9) months from January 1, 2026 to September 30, 2026..

SUMMARY

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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.

University Lands is offering for lease 10,851.926 contiguous acres in Pecos County, Texas, on the southern edge of the Central Basin Platform. Prospective section includes conventional Middle Permian Grayburg/San Andres reservoir along strike to recent developments on the northern part of the Platform. In addition, Lower Paleozoic unconventional potential may exist within shale-rich Tobosa Basin sediments deposited before Pre-Pennsylvanian structural deformation and uplift of the Platform. The area is underexplored and offers excellent opportunity to establish a foothold in these developing plays.

Permits to Drill Filed During the Past 365 Days

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Drilling Rigs on Location

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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/webmapjs/index.htm. 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 north and east of the subject acreage:

Tunis Creek UL Unit #301 - Operated by Osborn Heirs Company
http://www.utlands.utsystem.edu/Wells/WellInfo.aspx?API=4237134104

Tunis Creek UL Unit #103 - Operated by Osborn Heirs Company
http://www.utlands.utsystem.edu/Wells/WellInfo.aspx?API=4237134690

Upon the bid period closing at 10:00 a.m. CST on September 14, 2016, the following steps will occur: