Midland Basin

Our initial assets consists of mineral interests underlying approximately 14,804 gross acres in Midland County, Texas in the Permian Basin, approximately 50% of which are operated by Diamondback Energy. The mineral interests entitle us to receive an average 21.4% royalty interest on all production from this acreage with no additional future capital or operating expense required. The majority of our properties which are not operated by Diamondback are operated by RSP Permian, Inc. (NYSE: RSPP), an unaffiliated entity ("RSP Permian").

The estimated proved oil and natural gas reserves of our initial assets, as of December 31, 2013, were 10,270 MBOE based on a reserve report prepared by Ryder Scott, our independent reserve engineer.