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Key Business Areas

Leases for Oil and Gas Development

The Santa Rita No. 1 well, the first oil well discovery in the Permian Basin, was on the PUF Lands in 1923. Since then, oil and gas production has been a key source of income for the PUF. University Lands leases the land to companies for oil and gas development and maintains a royalty interest in any production.

The advent of new and enhanced technology, including horizontal drilling and hydraulic fracturing, has led to significant growth in production over the past decade.

Snapshot: Oil and Gas Activity on PUF Lands

  • 1.4 Million Acres Leased for Development
  • 4,000 Active Leases
  • 20,000 Wells Drilled to Date
  • 1,800 Horizontal Wells Drilled
  • 9,000 Producing Wells
  • >200 Operating Companies
  • 222,000 Barrel of Oil Equivalent (BOE) Daily Gross Production
  • 41,000 BOE Daily Net Production
  • 162 Million BOE Proved Reserves
  • 1,214 Million BOE 3P (Proved, Probable and Possible) Reserves
  • 21,000 Identified Drilling Locations

Benefits of Operating on University Lands

  • Large Contiguous Blocks of Acreage with clean titles and one single land owner are available
  • Extensive GIS, geologic , well and production data is available and easily accessible online
  • Competitive Lease Terms
  • All processes and procedures are clear and well-established, including for permitting of geophysical, salt water disposal, water and brine contracts
  • A knowledgeable and experienced staff ready to assist
  • University Lands’ revenues are exclusively for the benefit of higher education

Surface & Groundwater Management

University Lands manages the surface of the 2.1 million acres of PUF Lands. UL staff administers leases for a variety of activities, including:

  • Wind farms
  • Vineyard and winery
  • Grazing, hunting and recreational leases
  • Pipeline, power line and utility easements
  • Business and commercial site leases
  • Churches, schools and municipal sites
  • Roads, highways and highway rest stops
  • Groundwater sales and management

Groundwater Management

Situated over major and minor aquifers, University Lands proactively manages its water resources. Water use by ranching, the petroleum industry and municipalities generates revenue for University Lands and supports the West Texas economy. University Lands promotes water sourcing from brackish aquifers and best industry practices.