Area Contract for Development Agreements

University Lands has created a new broad Contract for Development, the “Area” Contract for Development (ACfD), based on commonly used oil industry farmout or drill to earn structure. An ACfD is an outbound Contract for Development proposal generated by University Lands that contains the following elements:

• The acreage is a large, standalone area;
• ACfD proposal must contain a standalone drilling commitment; and
• Entrance into an ACfD should reasonably allow for better or stronger development in the area in comparison to alternatives

Advantages for Developers/Operators include:

• Ability to obtain the rights to large contiguous block of acreage under one agreement
• Clear drilling commitment and term negotiated upfront
• Commitments are specific to the block of acreage
• Not required to have an existing acreage position on UL