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Image courtesy of Phil Roeder/Flickr.

The University of Texas is hoping to leverage falling upstream costs to boost the value of its oil and gas assets.

In an interview with Bloomberg, University Lands executive vice-chancellor for business affairs said UT is looking to take advantage of falling shale production costs to adjust its lease model, a move the university hopes will boost the value of the 2.1 million acres it currently holds.

“In the new scheme of things, not only do we have 2 million acres of land, but if there are two to four plays based on various depths in the shale formations, we might have the equivalent of 6 to 8 million acres of land,” Kelley said.

University Lands is under the direction of the Office of Business Affairs of the University of Texas System and is responsible for managing the Permanent University Fund lands and the Trust Minerals.

Oil revenues earned by UT are placed into the Permanent University Fund.

There are currently about 9,000 wells operating on university land and consultants for University Lands have identified an additional 21,000 potential sites, Bloomberg said.

According to data compiled by Bloomberg, UT and Texas A&M earned about $800,000  in oil and gas royalty revenue per day in 2015, down from a peak of just over $1.1 million in 2o14.

University Lands CEO Mark Houser told the news agency that he is also focused on renegotiating leases for sites that have not been drilled yet.

“We’ve got to know our assets better. We need to understand what the potential is,” Houser said.