Our Program

We do the research and find areas of interest for oil and gas exploration and drilling. We go to the lease sales and purchase the necessary oil and gas lease(s) on your behalf. The leases will be held by us for your benefit. You will receive all the overriding royalty (ORR) interest from the lease on the net production from each well drilled on your lease. (See financial example below) We assist you in negotiating with drilling companies in the area for the best deal to drill on your leases.

As you may know the key to success in this area is understanding the geology and having the foresight to purchase the right leases. We concentrate our efforts in acquiring leases with the best potential of becoming producing properties. Our geologists have worked the Rocky Mountain region for over 45 years and know the best areas to concentrate our efforts for lease acquisitions.

Once a lease is acquired, we will prepare a geologic evaluation of the lease prepared by our certified geologist for submission to prospective oil and gas drilling companies.

We will then assist you in negotiating the best deal with a drilling company.

HOW YOU MAKE MONEY
HOW OIL AND GAS ROYALTIES WORK
STATE AND FEDERAL LEASES
A SCHEDULE OF BUYING LEASES
SUMMARY
RELATED PROSPECTS TO CONSIDER
CONTRACT

HOW YOU MAKE MONEY
You receive the overriding royalty (ORR) payments from the net production of oil and gas (hydrocarbons) from each well on your leases plus any bonuses paid for the assignment of your lease to a drilling company.

Royalties are one of the greatest money making system in the world. You do nothing except acquire and maintain the lease and you receive a percentage of the income from each and every barrel of oil or cubic foot of gas produced and sold from your lease. Production may be anywhere from a few barrels of oil per day to 1,000 barrels per day and more. The normal range of a lease owners overriding royalty on federal leases are 2-7% although this will vary and could go as high as a 10%ORR. There are a few minor taxes involved and the variables of daily oil price, production flow, etc will vary from well to well.

Potential Income per well, an example:

• Assuming: $80.00 per barrel of oil x 100 barrels per day x 2% ORR = $160 per day;
• Assuming: $80.00 per barrel of oil x 100 barrels per day x 4% ORR = $320.00 per day;
• Assuming: $80.00 per barrel of oil x 100 barrels per day x 6% ORR = $480.00 per day;
• Assuming: $80.00 per barrel of oil x 100 barrels per day x 7% ORR = $560.00 per day;

Based on the above assumptions the monthly income could be $4,800 to $16,800 per month. For variations in prices for oil or quantities of production just substitute in the formula above.

Since the daily production will vary over the life of a well the daily income could vary substantially. Some wells produce up to 40 years. There will be some down time each year for maintenance and repairs but the royalty income can still be substantial over the life of an oil well.

HOW OIL AND GAS ROYALTIES WORK
Federal and State oil and gas leases are leases of public land for oil and gas exploration. Not all public land is available for oil and gas leases. The Bureau of Land Management (BLM) on behalf of the Federal government holds scheduled public auctions of public land it deems appropriate for oil and gas exploration. We can also nominate certain land for auction. This is a selective process. The U.S. government normally retains a 12.5% overriding royalty (ORR) on the oil and gas production from public land. The states retain a similar varied overriding royalty on land it sells at public auction.

By definition, an overriding royalty (ORR) is a share of production free and clear of the costs of production, curved out of the lessee’s (drilling company or operator) interest under an oil and gas lease. This is the money you make, plus any signing bonuses. This ORR is negotiable but ranges from approximately 2% to 7.5% depending on the desirability of the subject lease. Plus, there is often a one-time bonus paid called a lease acreage fee. All these factors are subject to negotiation with the drilling company or operator of the well.

There may be a couple of weeks per year wells are down for maintenance, etc when there is no production or royalties paid.

Leases may also be included with adjoining leases to form a Unit in which the drilling companies want to control as large a lease block as possible to drill more wells and to cover more production acreage. In this case each lease normally shares a proportionate share of the Unit’s overall production.

STATE AND FEDERAL LEASES
As we mentioned, anyone can bid for State and Federal oil and gas leases. Most leases are acquired by the big oil companies or independent oil and gas companies but by law even the little guy has a right to bid for them and that is why we help you be one of the oil and gas ‘players’ in acquiring oil and gas leases.

The Federal leases are for periods of 10 years. Until production is achieved, the BLM charges a small nominal fee of $1.50 – $2.00 per acre each year to maintain the lease starting with the first year anniversary of the acquisition date. Once the lease has commercial production the lease may be held for the term of production at no further cost.

State lease are for five or ten years depending on the state with small yearly fees until there is production on the lease.

With the price of oil getting higher and higher and the fear of ‘Peak Oil’ fast approaching, the increased activity in the oil business offers us excellent opportunities to get drilling activity on more and more leases. This means more opportunities for you as an oil and gas lease owner.

A SCHEDULE OF BUYING LEASES
A program of buying leases on a continuing schedule is the best chance of hitting it big. It is important to have a number of leases in different states and areas that diversify your holdings. At any one time different states may have the most exciting oil prospects. The oil and gas formations and trends may cover large areas and offer many different opportunities. We are able to move quickly and we like to stay ahead of the trends. That is why we concentrate on getting the best leases as early as we can. That is why it is best to diversify and buy a number of leases in different areas and states.

SUMMARY
Universal Oil & Gas, LLC is offering a unique opportunity to the general public to participate in purchasing oil and gas leases through public auctions conducted by the federal and state governments. This is how oil and gas companies get their leases for oil and gas production in the U.S. You can join our team in acquiring similar leases in prime oil producing states.

We offer our expertise and experience in the oil and gas industry to act on your behalf to purchase oil and gas leases in areas of the greatest interest and potential for oil and gas exploration and production.

We offer our service in acquiring the best leases we can get, evaluate them for oil and gas potential and prepare reports for industry companies that may want to acquire the leases for drilling.

We assist you in finding and negotiating an acceptable lease assignment to a drilling company. You receive all agreed bonuses when the leases are assigned and all agreed royalties on the production for the life of the well.

You have no obligations except for the purchase of the leases and the yearly rental fees.

RELATED PROSPECTS TO CONSIDER
We are natural resource exploration specialists. We have a number of natural resources prospects available. Please check out the following for other investment opportunities.

Gold Discovery, LLC
Mr. Murer has pioneered the geologic theory that is the basis for what we believe could be one of the BIGGEST GOLD DEPOSITS IN THE WORLD near Goldfield, Nevada. (See www.GoldDiscoveryNV.com)

The underlying geology of the Goldfield / Tonopah mineral zones arises from the volcanic eruptions that took place during the Miocene period (20-23 million years ago) along a ridge of mountains that contain huge mineral deposits that have been mined for many years in the region from zones of volcanic vents.

To date, the Goldfield/ Tonopah area has produced approximately 5.9 million ounces of gold, 175 million ounces of silver and 7.7 million ounces of copper. (Geologic Report)

The tremendous volumes of ascending fluids that created the bonanza of gold, silver and lithium deposits of the Goldfield and Tonopah districts would have descended down the flanks of the existing strato-volcanoes to accumulate and evaporate in the adjacent “reserve pit” formed by the Cambrian rock dam know today as the Paymaster Ridge. These fluids erupted for over one million years (USGS Bulletin Number 1646).

Geologic evidence suggests this natural basin existed at the time of the epithermal mineralization and it is not difficult to imagine the massive paleo-evaporate tabular ore concentration that may now underlie the placer accumulation. (Geologic Cross Section)

During the initial violent stages of the eruption, the potential of molten metals to be ejected from the volcanic vents would have also been likely. To date no drilling has been done to test the bottom of the ‘reserve pit’ for accumulation of metals that could contain a world class gold deposit. If you are interested in gold mining claims please see our web site at www.GoldDiscoveryNV.com.

Proton Uranium Corporation
Mr. Christian F. Murer pioneered the geologic theory that gave him the insight to find the original mining claims for the largest underground uranium mine in the United States, the Tony M Mine in Ticaboo, Utah. Over $200,000,000 has been spent in developing the Tony M Mine and Mr. Murer is now receiving guaranteed royalties on the uranium mined from his claims.

The same proprietary geology theories that were the basis of the discovery for the uranium mining claims for the Tony M Mine is now being applied to the staking and claiming of the next round of uranium mining claims in Utah. If you are interested in uranium mining claims please see our web site at www.ProtonUranium.com.

Lithium Discovery, LLC
Chemetall Foote Lithium Mine is the largest operating lithium mine in the United States and is located approximately 5 miles from our lithium prospect area in Esmeralda County, Nevada. This production area has the highest lithium brines content of any brines tested by the US Geological Survey in playas and basins of the southwestern United States. That may be why there are three different companies in our immediate area looking for key lithium discoveries in addition to the Chemetall Foote mine production.

We are in, what we believe, is the sweet spot for lithium brines exploration with similar geologic features and terrain as the Chemetall Silver Peak Mine. Our prospect area is ideally situated as a potential lithium brine mining property. Please see our web site at www.LithiumDiscovery.com.

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