The 1923 Santa Rita No. 1 discovery on University of Texas-owned land in Reagan County established the UT Permanent University Fund as oil-funded — one of the largest university endowments in the United States traces its origin to this single well.
Quick answer
County: Reagan County, Texas
Year of discovery: 1923
Discovery well: Santa Rita No. 1
Institutional impact: Established UT Permanent University Fund as oil-funded
Producing region: Big Lake field, Reagan County (Eastern Permian)
Historical rank: #14 (honorable mention)
The 1923 Santa Rita No. 1 well, drilled in Reagan County, Texas, sits on land granted to the University of Texas in the 19th century as part of the Permanent University Fund (PUF) endowment. The state had granted approximately 2 million acres of arid West Texas land to UT in 1876 with the expectation that the land would generate modest revenue from grazing leases.
When Santa Rita No. 1 came in as a producing oil well in 1923, the entire economics of the UT endowment changed overnight. Oil and gas royalties from the PUF land became the primary source of income for the endowment — transforming UT from a modestly funded state university into one of the largest university endowments in the United States.
The Permanent University Fund continues to receive oil and gas royalties from PUF land to this day. The endowment supports both the University of Texas System and the Texas A&M University System, making the 1923 Santa Rita No. 1 discovery one of the most institutionally consequential oil wells in Texas history.
The Santa Rita No. 1 was the discovery well for the broader Big Lake field in Reagan County, Texas. The field produces from Permian carbonate and clastic reservoirs in the Eastern Permian / Midland Basin transition zone. While Big Lake is not as large as the giant carbonate fields of the Central Basin Platform (Yates) or the Northern Shelf (Wasson, Slaughter), it has produced steady volumes for over a century.
The field has been operated by a succession of major and independent operators over the decades, with the PUF royalty stream continuing throughout.
Most Big Lake / Santa Rita producing leases sit on University of Texas / PUF land — meaning the mineral interest is held by the State of Texas through the PUF, not by private mineral owners. However, surrounding Reagan County has substantial private mineral interests that benefit from the same Permian carbonate and clastic reservoirs:
Private leases adjacent to PUF land often produce from the same reservoir trends that anchor Big Lake field production
Inheritance on private Reagan County leases is typically 3-4 generations deep from 1923-1935-era lease bonuses
Modern Permian horizontal activity in the broader Reagan / Crockett / Upton County area may add value to historic mineral interests through Spraberry / Wolfcamp completions
Operator landscape varies across Reagan County; check the operator-of-record for valuation context.
If your mineral interest traces back to the 1923 Santa Rita / Big Lake field or its associated boom-era leases, Buckhead Energy can value the future cash flow stream and provide a free written offer with no obligation. Out-of-state owners are common; we handle the entire process remotely.
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