AUSTIN — Jerry Patterson, chairman of the Permanent University Fund's Board for Lease of University Lands, announced the results of a record oil and gas lease sale in Midland today: $207 million.
"Today's lease sale was a jaw-dropper," Patterson said. "The $207 million brought in today for the Permanent University Fund is nearly four times more than the previous record of $52 million, set in 1980."
The bidding for West Texas was strong, Patterson said, with more than 75 percent of 260,000 acres up for sale going for more than $1,000 per acre.
Patterson said it appears that most of the industry excitement has been stirred up by Permian Basin oil plays, rather than natural gas. "The bidding was strong for areas in Reagan, Schleicher and Crockett County, where oil resource plays exist from Wichita Albany to the Strawn," Patterson said.
Leasing was also strong in the Delaware Basin, including Ward County, where a Bone Springs horizontal oil play is located; Pecos County near the Tunis Field, for Devonian oil potential; and other Delaware Basin counties such as Loving for Wolfbone, horizontal Wolfcamp and Bone Springs.
"This is a great day for the University of Texas and Texas A&M University systems," Patterson said. "$207 million is a lot of money."
The bonus sale brought in more revenue to the Permanent University Fund than all of the fund's oil royalties from last year combined.
The Board for Lease is composed of the Commissioner of the Texas General Land Office and regents from the UT and A&M University systems. Oil and gas bonuses and royalties earned from University Lands are deposited in the Permanent University Fund, a constitutionally created endowment that benefits institutions in the two university systems.
The board is responsible for 2.1 million acres of Permanent University Fund lands spread across 19 West Texas counties. Information about these sales - including oil and gas production and well data - may be found at www.utlands.utsystem.edu.