Lease Sale 128: September 20, 2017

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1 1 Lease Sale 128: September 20, 2017 ~700,000 acres available for lease. Of these: ~200,000 available for lease without nomination ~500,000 acres available through nomination process Horizontally severed tracts also available through nomination process Contact: Brian Owen, UL Land Director - bowen@utsystem.edu 1

2 2 September 20 th Lease Sale: UL s Assessment of Regional Prospectivity 2 Click on Blue or Red circles for Hyperlink to that area. Return by Clicking Map in Lower Right of Hyperlink slide Grayburg Hz San Andres Hz Wichita Hz Mississippian Hz Conventional Spraberry Hz Hz Mississippian Hz Orogrande Basin / Penn Oil Delaware Sands Bone Spring Mississippian Hz Yates Hz Ellenburger Mississippian Hz San Andres Hz Conventional San Andres /Grayburg Hz Penn Hz Mississippian Hz San Andres Hz Hz Yates Hz Wolfbone Hz Canyon / Ozona Gas Woodford/ Gas and Gas Liquids,, Canyon Gas

3 Possible Extension of Alpine High Gas/Wet Gas Trend into the Val Verde Basin Available acreage Leased acreage Requires Nomination Orogrande Basin Canyon / Woodford Gas/Wet Gas Woodford/ Gas and Gas liquids 3

4 Northern Central Basin Platform 4 Tansill Yates Seven Rivers Queen Grayburg San Andres Clearfork Spraberry Atoka Mississippian Lime Woodford Horizontal San Andres/ Grayburg, Clear Fork, Wichita opportunities New Unconventional Mississippian oil shale opportunities Conventional Queen (McFarland), (Block 9), Ellenburger (McFarland, Shafter Lake), Fusselman (Emma, Block 11), (McFarland, Block 12), and Atoka (Magutex) potential

5 Northern Midland Basin 5 MD Clearfork Spraberry Cisco Canyon Atoka Mississippian Lime Woodford Large contiguous swath of acreage New Unconventional Mississippian oil shale opportunities Highly underexploited Prospective Middle/ Lower Spraberry, A, B, C, and D potential Secondary and potential On stratigraphic strike to prolific Pioneer, QEP and Diamondback production to the south

6 Delaware Basin 6 Bell Canyon Cherry Canyon Brushy Canyon Bone Spring Atoka Morrow Mississippian Infill acreage opportunities flanked by high IP and Bone Spring horizontal wells Delaware sand, 3rd Bone Spring, A, B, and C Hz potential extending from the transition into the basin Mississippian gas (Caprito Field Block 18 Section 1)

7 7 Western Central Basin Platform Bell Canyon Cherry Canyon Brushy Canyon Bone Spring Atoka Mississippian Lime Woodford Fusselman Montoya Simpson Ellenburger New Unconventional Mississippian oil shale opportunities Conventional Yates Horizontal (North Ward Estes) Conventional, Ellenburger, Fusselman, and Atoka potential on platform

8 Mid Central Basin Platform 8 San Andres Glorieta Clearfork Tubb Wichita/Albany Mississippian Lime Woodford Fusselman Montoya Simpson Conventional horizontal San Andres/ Grayburg (Jordan, McElroy, Dune, Lea) and ClearFork New Unconventional Mississippian oil shale opportunities Conventional potential (31 Field) Penn Horizontal (Block 31) opportunity

9 Southern Midland Basin/Ozona Uplift 9 Tansill Yates Seven Rivers Queen Grayburg Clearfork Spraberry Infill acreage opportunities flanked by high IP wells Prospective opportunities San Andres Horizontal potential and Canyon gas potential in the SE portion of area

10 Southern Delaware Basin 10 Brushy Canyon Bone Spring Atoka Mississippian Lime Woodford Simpson Underexplored since the 1960s Horizontal Wolfbone (Periscope vertical and Forge hz production) and Yates (East Belding, Leon Valley) opportunities Conventional Atoka gas potential (La Escalera) Ellenburger basement

11 Southern Central Basin Platform 11 Rustler Tansill Queen San Andres Clearfork Fusselman Simpson Ellenburger Mississippian oil shale unconventional opportunities Horizontal San Andres potential (West Taylor Link Field) Conventional (Tunis Creek, Viejos), (Aspen), (Block 25), Queen (Cardinal), Penn Detrital (Atak)

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