Contact: Monty Jones, (512) 499-4363

Date: May 20, 1999

UT System News Release

University lease bonuses total $1,064,508

AUSTIN -- The Board for Lease of University Lands on Wednesday, (May 19) awarded 49 oil and gas leases covering 14,468 acres for total bonuses of $1,064,508.

The average bid was $75 per acre. Of the 13 bidders, the top four were Dan O’Neill ($550,974), Exxon Corporation ($184,433), Habanero Oil & Gas, L.L.C. ($60,827), and Zachry Exploration, Inc. ($46,512).

"The results of this oil and gas lease sale were significantly better than the results of the lease sale held last November," said Raul Romero, a U. T. System regent and vice chairman of the Board for Lease of University Lands.

"The total bonuses paid increased by about 85 percent over what was paid in November and the number of tracts sold increased by nearly 60 percent. As conditions