NOTICE OF OIL AND GAS LEASE SALE

BY SEALED BIDS TO BE OPENED AT 11:00 A.M.

SALE DATE: 9/14/2005

THE COMMISSIONERS OF THE LAND OFFICE OF THE STATE OF OKLAHOMA INVITES BIDS for Oil and Gas Leases upon

the following terms covering the tracts of land hereinafter described.

Bids must be written and enclosed in a sealed envelope, bearing the notation on the outside front face of the envelope

"Bids for Oil and Gas Lease Sale" and the date of the sale. Bids which are mailed must be enclosed in another

envelope and addressed as set out below.

Bids must be mailed to the office of the Secretary to the Commissioners of the Land Office, P.O. Box 26910, Oklahoma

City, Oklahoma 73126 or delivered to Suite 200, Paragon Building, 5801 North Broadway, Oklahoma City, Oklahoma on

the date of the sale. All bids received prior to 11:00 A.M. on date of sale will be publicly opened at that time and leases

will thereafter be awarded to the bidder of the highest cash bonus, if acceptable. No bid will be considered that is not

delivered by 11:00 A.M. on the date of the sale.

TERMS OF SALE: Lease will be on a form prescribed by the Commissioners, and will be for a term of three years, as

extended, and will provide for 3/16ths royalty, and an annual delay rental of $1.00 per acre to be paid in full, before

lease is issued, in addition to lease bonus. Bids shall be for a cash bonus for each lease, but no bid of less than $5.00

per acre will be considered. Each bid must be accompanied by a remittance in the amount of 25% of bid as earnest

money. Checks will be promptly returned to unsuccessful bidders. Successful bidder will be allowed 30 days from the

date of acceptance of bid to pay balance of bonus and all delay rentals, unless an extension of time be granted, and

shall be liable for the full amount of bid and all delay rentals, provided that failure to comply with any of the terms hereof

will be grounds for the cancellation of the award and the retention of the deposit of earnest money as liquidated

damages for such breach, at the election of the Commissioners. The State makes no warranty of title and reserves the

right to reject any and all bids. Successful bidder must pay cost of advertising. The Performance Fund balance has

reached $250,000. The Performance Fund fee will not be reinstated unless the balance of the Performance Fund falls

below $200,000.

IMPORTANT: Separate bid and check must be made on each tract. ENCLOSE ALL BIDS IN ONE ENVELOPE.

The M.R. % column refers to the mineral interest offered for lease.

CURRENT RULES PROVIDE THAT ALL OIL AND GAS BIDS BECOME FINAL AT DATE AND TIME OF BID OPENING.

TRACT COUNTY LEGAL DESCRIPTION SEC TWP RGE
M. R. %
GROSS ACS
NET ACS

001
Beaver NW/4 13-06N-22ECM
50.00% 160.0000 80.0000

002
Beaver SW/4 14-06N-22ECM
100.00% 160.0000 160.0000

003
Beaver E/2 NW/4, less and except the Lower Chester 27-03N-23ECM
50.00% 80.0000 40.0000

and St. Louis common sources of supply

004
Beaver W/2 NW/4, less and except the Lower 27-03N-23ECM
50.00% 80.0000 40.0000

Chester and St. Louis common sources of

supply

005
Beaver SE/4 18-06N-23ECM
100.00% 160.0000 160.0000

006
Beckham SE/4, insofar and only insofar as covers 05-10N-21WIM
50.00% 160.0000 80.0000

rights below the base of the Hoxbar common

source of supply

007
Beckham NE/4 35-11N-22WIM
50.00% 160.0000 80.0000

008
Beckham NW/4 35-11N-22WIM
50.00% 160.0000 80.0000

009
Beckham NW/4 36-11N-22WIM
100.00% 160.0000 160.0000

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