NOTICE OF OIL AND GAS LEASE SALE

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

SALE DATE: 1/16/2008

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

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

1
Alfalfa NE/4 36-26N-09WIM
100.00 160.0000 160.0000

2
Alfalfa SE/4 36-26N-09WIM
100.00 160.0000 160.0000

3
Beaver SE/4 24-01N-22ECM
50.00% 160.0000 80.0000

4
Beckham S/2 NW/4 08-09N-22WIM
100.00 80.0000 80.0000

5
Beckham N/2 SW/4 08-09N-22WIM
100.00 80.0000 80.0000

6
Beckham Lots 3 and 4; E/2 SW/4, less and except the 31-10N-23WIM
50.00% 158.0800 79.0400

Hunton formation

7
Blaine Lot 6; All that portion of Lot 7 lying within 36-20N-10WIM
100.00 59.9300 59.9300

Blaine County

8
Bryan SW 10 acres of Lot 1; Lot 2 06-06S-08EIM
50.00% 50.0000 25.0000

9
Bryan Lot 3; SE 10 acres of Lot 4 06-06S-08EIM
50.00% 50.0000 25.0000

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