Austin American-Statesman: UT regents approve plan to sell oil reserves
‘Forward contract’ could yield $1 billion in advance of production.
University of Texas System regents on Thursday approved a plan to sell a portion of the oil and natural gas reserves beneath the system’s vast West Texas lands for about $1 billion.
Under the plan, the system would be paid up front by an investment bank or oil company in return for agreeing to provide a certain amount of oil and gas from its 2.1 million acres during the next 10 years or so. Since 1923, when the system’s first well began producing, it has received royalty payments only for actual production, not future production.
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