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University Lands On Track for Another Successful Year

University Lands brings in $74 Million during oil/gas lease sale
Midland -- University Lands has a lot to celebrate following another successful oil and gas lease sale.

Sale 124 brought in over $74 million for the Permanent University Fund benefiting University of Texas and Texas A&M. Over 41,000 acres were sold with Ward and Winkler counties bringing in the highest number of bids.

"There's a pretty new play going on over there called the Phantom Wolfcamp. I suspect that's what caused the interest," said Jim Benson, University Lands executive director.

Although this week's sale wasn't their largest sale, it was a huge success considering much of their acreage has been sold over the last several years.

"In the last three and a half ... four years, we've experienced a huge upturn in leasing on University Lands. That's because the Permian Basin is the hottest oil play in maybe the world and most of our acreage happens to be in the Permian Basin," Benson said.

Although tracts are becoming more and more scarce, Benson believes today was the beginning of another successful year for University Lands. "People are finding new ways to utilize the land, and the value seems to be increasing on the available acres," he said.

In 2010, University Lands sold hundreds of thousands of acres bringing in $500 million. Last year they had a $100 million year and after this week's $74 million sale, they're right on track to have another great year.

The next sale will take place in the spring.

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