Contact: Monty Jones, (512) 499-4363

Date: November 18, 1999

UT System News Release

Sale of Oil and Gas Leases Totals $1.27 Million

AUSTIN -- Oil and gas leases sold this week added more than $1.27 million to the Permanent University Fund, the public endowment that helps support institutions in the University of Texas System and the Texas A&M University System.

The Board for Lease of University Lands opened bids for its 96th regular lease sale in Midland on Tuesday (Nov. 16) and awarded the leases at its meeting in Houston on Wednesday (Nov. 17).

Total acres leased were 12,715 in eight West Texas counties. Revenue from the sale netted $1,273,395 to the Permanent University Fund.

"This is an improvement over the last sale. We are very pleased with the results and hope the trend continues," said Raul Romero, a U.T. System regent who serves on the Board for Lease.

The board offered 19,916 acres in Andrews, Gaines, Martin, Reagan, Crockett, Pecos, Ward, and Winkler Counties. Sealed bids were received on 12,715 acres. Bids were received and leases were awarded on 43 of 66 tracts that were offered.

Twelve companies submitted successful bids, which ranged from a high of $437 per acre to a low of $15 per acre. The bonuses of $1,273,395 averaged $100 per acre for 12,715 acres.

The highest single bid was submitted by Goldrus Producing Co. for tract No. 51, being the southwest one-quarter of Section 1, Block 48, Reagan County. The bid of $437 per acre totaled $72,832.

Dan O’Neill was the overall high bidder, buying 23 tracts totaling 6,894 acres for $759,982.

In a continuing effort to support the petroleum industry's leasing and development activities on University Lands, the Board for Lease of University Lands will continue to schedule two lease sales each year, in May and November. The next sale is scheduled for May 17, 2000. Information about these sales may be obtained from the office of University Lands, P. O. Box 553, Midland, Texas 79702, phone 915-684-4404, fax 915-682-7456. Additional information about University Lands, including oil and gas well and production data, is available on the Internet at http://www.utlands.utsystem.edu.

The Board for Lease is composed of the commissioner of the state's General Land Office and regents of the U.T. and Texas A&M Systems. The Permanent University Fund is a constitutionally authorized endowment fund that benefits 17 institutions in the U.T. System and the Texas A&M System.