Andrews, TX 79714(Andrews County)

Improvements: The ranch is adequately improved for the day to day functions on the property. A ranch managers home is centrally located near a set of shipping pens. Several barns and outbuildings are located nearby. The ranch is fenced and cross fenced and fences appear to be in good condition.

Remarks: The grazing and hunting rights are currently leased on the ranch. The terms of the lease are for 5 years for annual consideration of approximately $36,171.20. There is a 90 day sales clause in place under the current lease, so possession is available, if desired.

There are no minerals owned, and the property will convey on a surface only basis, however, the ranch does receive surface damages from oil and gas exploration. Currently, production is limited to the northeastern portion of the ranch, and the majority of the M Bar Ranch is not effected by production. In recent years a salt water disposal well has been leased. This disposal well is located on the eastern portion of the property. The terms of the salt water disposal lease are for 10 a barrel disposed into the well and 10% of the net revenues of any skim oil and other products recovered from the well. There is a minimum monthly payment in the terms of the lease of $7,500. This lease was executed in March of 2012 and is for a term of one year, with a month to month automatic renewal until 60 days notice is given for termination.

The M Bar Ranch is a proposed CREZ (Competitive Renewable Energy Zone) project location. Various transmission, interconnection, wind resource, species and other impact and environmental studies have been completed; in addition the FAA has issued a No Impact determination. There are three meteorological towers on site with heights of 50 meters, 60 meters and 100 meters. Wind data has been continuously collected since July 2007 with data collections at all three towers currently ongoing.

The seller will convey 50% of the wind energy rights intact. At closing the seller will offer the buyer a Wind Farm Development Option Agreement for a period of seven years. The annual option payment will be $25,000, or $12,500 for a 50% interest. Terms of the option/lease will be negotiable.

The M Bar Ranch is very realistically priced at $475 per acre. This working cattle ranch offers a good location from Midland/Odessa, good fencing and grass turf, functional ranch improvements and a solid income stream. Including the grazing lease currently in place, the ranch generates an income of over $125,000 per year, and the wind energy revenue will greatly enhance this.

Copies of all leases are available.