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  Texas Royalty properties are located in 33 Texas counties.

  Waddell Ranch properties are located in Crane county.

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The net profits/overriding royalty interest in the Waddell Ranch properties is the largest asset of the Trust. The mineral interests in the Waddell Ranch, from which such net royalty interests are carved, vary from 37.5% (Trust net interest) to 50% (Trust net interest) in 78,715 gross (34,205 net) producing acres. A majority of the proved reserves are attributable to six fields: Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell. At December 31, 2015, the Waddell Ranch properties contained 824 gross (362 net) productive oil wells, 158 gross (66 net) productive gas wells and 296 gross (120 net) injection wells.

BROG is operator of record of the Waddell Ranch properties. All field, technical and accounting operations have been contracted by agreements between the working interest owners and Schlumberger Integrated Project Management (IPM) and Riverhill Capital Corporation ("Riverhill Capital"), but remain under the direction of BROG.

Six major fields on the Waddell Ranch properties account for more than 80% of the total production. In the six fields, there are 12 producing zones ranging in depth from 2,800 to 10,600 feet. Most prolific of these zones are the Grayburg and San Andres, which produce from depths between 2,800 and 3,400 feet. Also productive from the San Andres are the Sand Hills (Judkins) gas field and the Sand Hills (McKnight) oil field, the Dune (Grayburg/San Andres) oil field, and the Waddell (Grayburg/San Andres) oil field.

The Dune and Waddell oil fields are productive from both the Grayburg and San Andres formations. The Sand Hills (Tubb) oil fields produce from the Tubb formation at depths averaging 4,300 feet, and the University Waddell (Devonian) oil field is productive from the Devonian formation between 8,400 and 9,200 feet.

The Waddell Ranch properties are mature producing properties, and all of the major oil fields are currently being waterflooded for the purpose of facilitating enhanced recovery. Proved reserves and estimated future net revenues attributable to the properties are included in the reserve reports summarized below. BROG does not own the full working interest in any of the tracts constituting the Waddell Ranch properties and, therefore, implementation of any development programs will require approvals of other working interest holders as well as BROG. In addition, implementation of any development programs will be dependent upon oil and gas prices currently being received and anticipated to be received in the future.

There were 12 gross (5 net) drill wells completed on the Waddell Ranch properties during 2015. At December 31, 2015, there were 0 drill wells and 0 workovers in progress on the Waddell Ranch properties. There were 17 gross drill wells completed on the Waddell Ranch properties during 2014. At December 31, 2014, there were 3 drill wells and 3 workovers in progress on the Waddell Ranch properties. There were 14 gross drill wells completed on the Waddell Ranch properties during 2013. At December 31, 2013, there were 8 drill wells and 4 workovers in progress on the Waddell Ranch properties.

BROG had advised the Trustee that the total amount of capital expenditures projected budget for 2015 with regard to the Waddell Ranch properties totaled $41.1 million. Capital expenditures include the cost of remedial and maintenance activities. This amount spent is approximately $7 million less than the budgeted amount projected by BROG for 2015. BROG has advised the Trustee that the capital expenditures budget for 2016 totals approximately $2.45 million (gross) ($1.08 million net to the Trust), of which approximately $0 million (gross) is attributable to the 2016 drilling program, $1.3 million (gross) to workovers and recompletions, and $1.15 million (gross) to facilities. The remaining would be attributable to final completion of the projects included in the 2015 budget. Accordingly, there is a 94% decrease in capital expenditures for 2016 as compared with the 2015 capital expenditures. The major reason for the variance is the reduced level of activity. There will be 0 new drill wells in 2016 as compared to 12 new drill wells and recompletions, facilities and base capital project costs of $41.1 million (gross) in 2015.