Even with dropping oil price per barrel across the globe, drilling in the shale-oil area of the Permian Basin still proves profitable. Taylor Consulting (TAYO) will be finalizing a real estate deal in order to acquire land in the shale-oil rich region of Texas. The acquisition target is 10 acres located in Tye, Texas, a part of Taylor County in the Abilene Greater Metro Area. The recent shale growth has caught the attention of many investors as they look to cash in on the various revenue channels that come with such a growth.
The target is locate in the Cline Shale area on the eastern shelf of the Permian Basin. The expected yield the region has to offer is 15 years of drilling, along with 30 years of oil production. This region has an estimated 5 billion barrels of oil reserves beneath the surface along with 30 billion barrels of recoverable oil. This outranks both the Alaskan and Gulf of Mexico oil hot spots, for the top region in North America.
Taylor Consulting has created Third Avenue Development, LLC with a focus on investing in high potential assets in order to compete with companies such as; American Homes 4 Rent, Silver Bay Realty Trust Inc., Equity Residential, and Essex Property Trust Inc. among others. Building an emerging portfolio of assets to capture the recovery of the housing market for prolonged development and resale is the main focal point for the division of Taylor.
With such a large boom in production and activity, living amenities along with all services and market places that come along with increased population will need to be increased. Acquisition of key locations near metro areas will allow multiple opportunities for market capture. Demand is on the up swing, and as long as oil prices do not dip below $57 (WSJ) the drilling will remain profitable in West Texas.
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