Investors Anticipate What Could Be the Largest Shale Play in American History

Investors Anticipate What Could Be the Largest Shale Play in American History

PR Newswire

LUBBOCK, Texas, Nov. 27, 2012

LUBBOCK, Texas, Nov. 27, 2012 /PRNewswire/ --Expectations are building for
America to become the world leader in oil production by 2017 due in part from
what some are supposing could be the largest oil play in American history,
taking place on Texan soil.

In the heart of Texas's Permian Basin, lies the Cline Shale, an oil shale
field running 140 miles long and 70 miles wide. Devon Energy and Chesapeake
Energy, two oil companies, are reporting impressive figures based on the short
amount of time they have had to explore. Devon Energy's test wells show the
Shale contains 3.6 million barrels of recoverable oil per square mile. With an
approximate 9,800 square miles of Cline Shale, this would amount to over 30
billion barrels of recoverable oil, exceeding both the Bakken fields in North
Dakota, and the Eagle Ford in Texas by nearly 50 percent.

Taking into account the projected 200 to 550 depth of the Shale, this would be
equivalent to having ten Eagle Ford Shales stacked on top of each other. The
oil to dry gas ratio of the Shale is also garnering attention, with the Shale
containing 85 percent oil and liquid rich gas. When you combine that with the
low operating costs it takes to produce the oil in the Basin, about 50 percent
less than the Bakken, it is shaping up to be one of the greatest oil & gas
booms America has ever seen.

There are two primary deficiencies that the Cline Shale region will need to
overcome to be able to make history: lack of housing due to exponential
population growth to small town infrastructures, and lack of global
distribution for the large amounts of liquid gas being produced. If the
deficiencies are adequately addressed, the boom stands a better chance of
maintaining momentum.

LubbockInvest, a real estate investing firm, is addressing the housing lack
through Stone Bridge Estates, a 50 acre 265 lot manufactured home development
in the heart of the Permian Basin, aimed at providing high-end, affordable
housing for the employees brought to the area due to the boom. This type of
housing is in high demand since many of the individuals brought to the area
lack creditworthiness, preventing them from obtaining traditional housing.
According to Midland City Manager, Courtney Sharp, "Oil and gas company
leaders also say that cumulatively, they still could use as many as 10,000
more employees in the coming years." As it stands, housing will continue to be
a deficit that could hinder the boom, but is being addressed at a satisfactory

Teekay LNG Partners, a Liquid Natural Gas Carrier, is addressing the
deficiency that such large liquid gas depositories will cause. Although gas is
extremely inexpensive in the United States, it remains pricey in nearly every
other country in the world. Teekay has been ramping up its ability to export
liquid natural gas around the world by adding six additional vessels to its
inventory in October of 2011. With the presence of an international market,
the profit produced from the Cline Shale will increase quite dramatically as
most of the gas extracted is already liquid-rich gas.

Although it is too early to call this the largest play in American history, it
is clear that intentional companies are anticipating that this is precisely
what it could be.

Joy Fassauer
Texas District Agency
(806) 787-9229

SOURCE LubbockInvest
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