1718 south bryant boulevard, san angelo, texas 76903...economy, competition, and other factors...

A | TitleMax

Exclusively Offered By:

Michael Campbell 858.531.6585 [email protected] CA Lic #01843521

Ed Colson, Jr. CCIM 858.449.4503 [email protected] Lic #01382996 | TX Lic #635820

1718 South Bryant Boulevard, San Angelo, Texas 76903

1 | TitleMax

InvestCore Commercial has been retained as exclusive

advisor to the Seller for the sale of the approximately

4,940 square feet building on approximately 15,368

square feet of land located at 1718 South Bryant

Boulevard, San Angelo, Texas 76903.

This Offering Memorandum has been prepared by

CTSD for use by a limited number of parties and does

not purport to provide a necessarily complete summary

of the Property or any of the documents related thereto,

nor does it purport to be all-inclusive or to contain all

of the information which prospective investors may

need or desire. All projections have been developed

by CTSD, the Owner, and designated sources and

are based upon assumptions relating to the general

economy, competition, and other factors beyond the

control of the Owner and CTSD, therefore, are subject to

variation. No representation is made by CTSD or Owner

as to the accuracy or completeness of the information

contained herein, and nothing contained herein is, or

shall be relied on as, a promise or representation as to

the future performance of the Property. Although the

information contained herein is believed to be correct,

Owner and its employees disclaim any responsibility

for inaccuracies and expect prospective purchasers to

exercise independent due diligence in verifying all such

information. Further, CTSD, Owner, and its employees

disclaim any and all liability for representations and

warranties, expressed and implied, contained in, and

omitted from, this Offering Memorandum or any other

written or oral communication transmitted or made

available to the recipient. This Offering Memorandum

does not constitute a representation that there has been

no change in the business or affairs of the Property or

the Owner since the date of preparation of the package.

Analysis and verification of the information contained in

this package is solely the responsibility of the prospective

purchaser.

Additional information and an opportunity to inspect the

Property will be made available upon written request to

interested and qualified prospective investors.

Owner and CTSD each expressly reserve the right, at

their sole discretion, to reject any and all expressions of

interest or offers regarding the Property and/or terminate

discussions with any entity at any time with or without

notice. Owner shall have no legal commitment or obligation

to any entity reviewing this Offering Memorandum or

making an offer to purchase the Property unless and until

a written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Owner

and its legal counsel, and any conditions to Owner’s

obligations thereunder have been satisfied or waived.

CTSD is not authorized to make any representations or

agreements on behalf of Owner.

This Offering Memorandum and the contents, except

such information which is a matter of public record or is

provided in sources available to the public (such contents

as so limited herein are called the “Contents”), are of a

confidential nature. By accepting the package, you agree

(i) to hold and treat it in the strictest confidence, (ii) not to

photocopy or duplicate it, (iii) not to disclose the package

or any of the contents to any other entity (except to

outside advisors retained by you, if necessary, for your

determination of whether or not to make a proposal

and from whom you have obtained an agreement of

confidentiality) without the prior written authorization of

Owner or CTSD, (iv) not use the package or any of the

contents in any fashion or manner detrimental to the

interest of Owner or CTSD, and (v) to return it to CTSD

immediately upon request of CTSD or Owner.

The information contained herein has been obtained

from the owner of the property or from other sources we

deem reliable. We have no reason to doubt its accuracy,

but we do not guarantee it.

If you have no further interest in the Property,

please return this Investment Offering Memorandum

forthwith.

OFFERING STATEMENT / DISCLAIMER

InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, 2nd Floor

San Diego, CA 92110

2 | TitleMax

TABLE OF CONTENTS TITLEMAX SAN ANGELO, TX

INVESTMENT SUMMARY 3

Executive Summary

Location Highlights

Investment Highlights

Amenities Map

PROPERTY DESCRIPTION 7

Aerials

Traffic Count Map

Location Map

Site Plan

AREA OVERVIEW 11

Tenant Information

Article: The Cline Shale

Demographics [ ]QUOTEQUOTEQUOTE

3 | TitleMax

Tenant: TitleMax

Address: 1718 South Bryant Boulevard, San Angelo, Texas 76903

Building Size: ~4,940 SF

Land Size: ~15,368 SF

Year Built: 2014

Rent Commencement: April 1, 2014

Lease Expiration: March 31,2019

Lease Term: 5 years

Options: Two (2) five year options

Rent Increases: 10% every 5 years

Insurance: Reimbursed monthly by Tenant

Taxes: Reimbursed monthly by Tenant

Maintenance:Tenant responsible for all interior, non-structural, including parking lot

Roof & Structure: Landlord responsible

Rent Schedule:

Price: $758,135

Cap Rate: 8.15%

Net Operating Income: $61,788

Term Years Date of Increase Annual Rent % Increase

Primary 1-5 $61,788

Option 1 16-20 April 1, 2019 $67,968 10%

Option 2 21-25 April 1, 2024 $74,760 10%

EXECUTIVE SUMMARY

OFFERING TERMS

INVESTMENT SUMMARY TITLEMAX SAN ANGELO, TX

4 | TitleMax

TitleMax - San Angelo, TX / 2

LOCATION HIGHLIGHTS

POPULATION GROWTH

Located in the heart of San Angelo• The property is located across the street from Angelo State University,

home to 7,084 students.

• The property benefits from one of the major employers in San Angelo, Goodfellow Air Force Base, located just east of the TitleMax.

High Traffic Counts on Busy Thoroughfare • The subject property is located on Highway 87 (S. Bryant Blvd.), one of

the most highly trafficked thoroughfares in San Angelo.

• S. Bryant Blvd. is also the roadway that connects commuters between Highway 67, to the north of the property, and Loop 306 to the south of the property.

Ideal Demographics for TitleMax • San Angelo is a blue collar community with average household

incomes of approximately $50,000, ideal for a business like TitleMax

• Population, Households and Average Household Incomes all have positive projected annual growth rates between 2013 – 2018 of 1.05%, 1.17% and 2.85% respectively

The Cline Shale• The formerly low profile Cline shale, equivalent to the Cisco, has

captured the attention of Tulsa-based Laredo Petroleum and other operators. Laredo’s Permian activity is centered on the basin’s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin.

• The U.S. Geological Survey said it’s the largest discovery in the last 50 years in the Permian Basin.

Population Growth ChartTitleMax - San Angelo, TX Prepared by Edward Colson1718 S Bryant Blvd, San Angelo, Texas, 76903, Latitude: 31.443162598Ring: 5 mile radius Longitude: -100.4419286

5 miles

2010-2013 Grwth Rt: Population 0.85%

2013-2018 Grwth Rt: Population 0.54

Total Population

2000 2010 2013 2018

100,000

95,000

90,000

85,000

80,000

75,000

70,000

65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

87,523

92,36894,936

100,045

July 25, 2014

©2014 Esri Page 3 of 3

Source: Esri forecasts for 2013.

Investment SummaryTITLEMAX SAN ANGELO, TX

LOCATED IN THE HEART OF SAN ANGELO

• The property is located across the street from Angelo State University, home to 7,084 students.

• The property benefits from one of the major employers in San Angelo, Goodfellow Air Force Base, located just east of the TitleMax.

INVESTMENT SUMMARY

LOCATION HIGHLIGHTS

HIGH TRAFFIC COUNTS ON BUSY THOROUGHFARE

• The subject property is located on Highway 87 (S. Bryant Blvd.), one of the most highly

trafficked thoroughfares in San Angelo.

• S. Bryant Blvd. is also the roadway that connects commuters between Highway 67, to the north of the property, and Loop 306 to the south of the property.

IDEAL DEMOGRAPHICS FOR TITLEMAX

• San Angelo is a blue collar community with average household incomes of approximately $50,000, ideal for a business like TitleMax

• Population, Households and Average Household Incomes all have positive projected annual growth rates between 2013 – 2018 of 1.05%, 1.17% and 2.85% respectively

THE CLINE SHALE

• The formerly low profile Cline shale, equivalent to the Cisco, has captured the attention of Tulsa-based Laredo Petroleum and other operators. Laredo’s Permian activity is centered on the basin’s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin.

• The U.S. Geological Survey said it’s the largest discovery in the last 50 years in the Permian Basin.

POPULATION GROWTH

5 | TitleMax

TITLEMAX SAN ANGELO, TX

CORPORATE SIGNATURE AND NEW LEASE

• Corporate signature and corporate guarantee on the lease.

• TitleMax has over 1,350 stores spanning 16 states.

• TitleMax recently signed a brand new lease which commenced in February of 2014.

INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

NEWLY REDEVELOPED BUILDING

• The Landlord and Tenant spent nearly $100,000 on remodeling the existing building in

converting it to current TitleMax standards.

• The 4,940 SF box allows for numerous uses

BITE SIZED INVESTMENT ATTRACTIVE RETURN IN COMPETITIVE MARKET

• This is an excellent opportunity to acquire a quality single tenant NNN investment for under $1M, ideal for an investor who may have a small 1031 exchange requirement or boot leftover.

• An 8% cap rate provides an investor with a favorable return in a competitive market for buyers searching for freestanding NNN investment opportunities. Cap rates have compressed across the board for corporately backed net leased investments.

LACK OF QUALITY COMPETITION

• TitleMax is the largest and most reputable title lending business in town.

TITLEMAX

6 | TitleMax


TITLEMAX

INVESTMENT SUMMARY

AMENITIES MAP

7 | TitleMax

PROPERTY DESCRIPTION TITLEMAX SAN ANGELO, TX

AERIAL

TITLEMAX

8 | TitleMaxTitleMax - San Angelo, TX / 7

Traffic Count MapTitleMax - San Angelo, TX Prepared by Edward Colson1718 S Bryant Blvd, San Angelo, Texas, 76903 Latitude: 31.443163Ring: 1, 3, 5 Miles Longitude: -100.441929

July 25, 2014

©2014 Esri

Source: ©2011 MPSI (Market Planning Solutions Inc.) Systems Inc. d.b.a. DataMetrix®


July 25, 2014

©2014 Esri



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©2014 Esri


TRAFFIC COUNT MAP

Property Description



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TRAFFIC COUNT MAP

Property DescriptionPROPERTY DESCRIPTION TITLEMAX SAN ANGELO, TX

TRAFFIC COUNT MAP



July 25, 2014

©2014 Esri



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TRAFFIC COUNT MAP




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TRAFFIC COUNT MAP


9 | TitleMax

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Lawton

McKinney

LongviewTyler

SanAngelo

Temple

CollegeStationRound

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Port Arthur

Galveston

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Dallas

Houston

SanAntonio

Austin

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Waco

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Copyright:© 2014 Esri, Sources: Esri, GEBCO, NOAA, National Geographic, DeLorme, NAVTEQ,Geonames.org, and other contributors U0 30 60 90 12015

Miles

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Loop 306 S

Howard St

WHou

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Sunset Dr

Arden Rd

Knickerbocker Rd

Southland Blvd

W Ave N

Pulliam St

N Chadbourne St

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PROPERTY DESCRIPTION TITLEMAX SAN ANGELO, TX

LOCATION MAP

TITLEMAX

10 | TitleMax TitleMax - San Angelo, TX / 9

SITE PLAN

Property DescriptionPROPERTY DESCRIPTION TITLEMAX

SAN ANGELO, TX

SITE PLAN

11 | TitleMax


TENANT INFORMATION

ABOUT TITLEMAX CAR TITLE LOANS

TitleMax is one of the nation’s largest and most reputable title lending companies. Since its inception in 1998, TitleMax has expanded to over 1,350 stores spanning 16 states. TitleMax strives to offer some of the lowest interest rates on title loans in the industry, while providing a superior level of customer service.

WHY TITLEMAX?

TitleMax provides title loans to over 2,500 people every day. They choose TitleMax because:

• TitleMax offers the most cash – title loans up to $10,000!*• TitleMax doesn’t check your credit – you’re approved!• TitleMax has some of the lowest rates – up to 50% less!• TitleMax offers instant approval – get your cash faster!• TitleMax doesn’t require auto insurance – getting cash is easy!

With over 1,350 convenient locations, getting cash is easy with TitleMax! The title loan process only takes about 30 minutes. And the best part is you get to keep driving your car when you get a TitleMax car title loan.

WHAT PRODUCTS DOES TITLEMAX OFFER?

TitleMax not only offers a simple way to get the money you need when you need it, but we also pride ourselves on providing excellent customer service and a very easy loan process. We offer a number of different products to fit all types of lifestyles and budgets.

Please visit the TitleMax website for additional information: www.titlemax.com

Area Description

ABOUT TITLEMAX CAR TITLE LOANS

TitleMax is one of the nation’s largest and most reputable title lending companies. Since its inception

in 1998, TitleMax has expanded to over 1,350 stores spanning 16 states. TitleMax strives to offer

some of the lowest interest rates on title loans in the industry, while providing a superior level of

customer service.

WHY TITLEMAX?

TitleMax provides title loans to over 2,500 people every day. They choose TitleMax because:

• TitleMax offers the most cash – title loans up to $10,000!*

• TitleMax doesn’t check your credit – you’re approved!

• TitleMax has some of the lowest rates – up to 50% less!

• TitleMax offers instant approval – get your cash faster!

• TitleMax doesn’t require auto insurance – getting cash is easy!

With over 1,350 convenient locations, getting cash is easy with TitleMax! The title loan process

only takes about 30 minutes. And the best part is you get to keep driving your car when you get a

TitleMax car title loan.

WHAT PRODUCTS DOES TITLEMAX OFFER?

TitleMax not only offers a simple way to get the money you need when you need it, but we also

pride ourselves on providing excellent customer service and a very easy loan process. We offer a

number of different products to fit all types of lifestyles and budgets.

Please visit the TitleMax website for additional information: www.titlemax.com

AREA OVERVIEW

TENANT INFORMATION


12 | TitleMax

The formerly low profile Cline shale, equivalent to

the Cisco, has captured the attention of Tulsa-

based Laredo Petroleum and, more recently, other

operators. Laredo’s Permian activity is centered

on the basin’s eastern side about 35 miles east of

Midland, Texas, which has long been dubbed capital

of the Permian Basin. The company’s production/

exploration fairway is about 20 miles wide and 80

miles long. In 2011, it drilled 262 wells (234 operated)

on its Permian Basin assets with a 100 percent

success rate on the 239 wells that were completed

during 2011. “The overall Wolfberry interval, which

is the principal focus of our vertical drilling activities,

is an oil play that also includes a liquids rich natural

gas component,” said Laredo founder, chairman and

CEO Randy Foutch, an AAPG member. “Prior to our

purchase of Broad Oak, the exploration and drilling

efforts in the southern half of our acreage block were

centered on the shallower part of the Wolfberry,”

he said. “But the emphasis in the northern half has

always been on the deeper intervals, including the

Wolfcamp, Cline shale, Strawn and Atoka formations.

“We have identified significant potential throughout

our total acreage block for the entire Wolfberry

interval from the shallow zones to the deepest,” he

noted. Consequently, the company expanded its

drilling program to include a horizontal component

targeting the Cline and Wolfcamp shales. “Our Cline

shale drilling began after we conducted an extensive

technical review, including whole core analysis and

single zone testing in vertical wells,” Foutch said. “We

believe the Cline shale exhibits similar petrophysical

attributes and favorable economics compared to

other liquids-rich shale plays, such as in the Eagle

Ford and Bakken shale formations. “We have acquired

3-D seismic data to assist in fracture analysis and the

definition of the structural component within the Cline

shale,” he added. Eighteen wells were drilled as part

of the company’s Cline drilling program in 2011, and

Laredo had two horizontal rigs drilling in the program

at year-end. Efforts are under way to optimize well

performance according to lateral length, fracture

density, proppant amounts and pumping rates.

Laredo also has completed six horizontal wells in the

Wolfcamp shale. “This is all very fast moving,” Foutch

commented. “No one was talking about horizontal

Wolfcamp even 18 months ago. We think there will

always be vertical drilling in the Wolfberry, but the

results in the horizontals are such that you’ll see

expanding horizontal drilling activity. We were the

IN PURSUIT OF LIQUIDS-RICH PLAY IN THE CLINE SHALEExcerpt from May 2012 issue of AAPG Explorer Magazine


Area Description

The formerly low profile Cline shale, equivalent to the Cisco, has captured the attention of Tulsa-

based Laredo Petroleum and, more recently, other operators. Laredo’s Permian activity is centered on the basin’s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin. The company’s production/exploration fairway is about 20 miles wide and 80 miles long. In 2011, it drilled 262 wells (234 operated) on its Permian Basin assets with a 100 percent success rate on the 239 wells that were completed during 2011. “The overall Wolfberry interval, which is the principal focus of our vertical drilling activities, is an oil play that also includes a liquids rich natural gas component,” said Laredo founder, chairman and CEO Randy Foutch, an AAPG member. “Prior to our purchase of Broad Oak, the exploration and drilling efforts in the southern half of our acreage block were centered on the shallower part of the Wolfberry,” he said. “But the emphasis in the northern half has

always been on the deeper intervals, including the Wolfcamp, Cline shale, Strawn and Atoka formations. “We have identified significant potential throughout our total acreage block for the entire Wolfberry interval from the shallow zones to the deepest,” he noted. Consequently, the company expanded its drilling program to include a horizontal component targeting the Cline and Wolfcamp shales. “Our Cline shale drilling began after we conducted an extensive technical review, including whole core analysis and single zone testing in vertical wells,” Foutch said. “We believe the Cline shale exhibits similar petrophysical attributes and favorable economics compared to other liquids-rich shale plays, such as in the Eagle Ford and Bakken shale formations. “We have acquired

3-D seismic data to assist in fracture analysis and the definition of the structural component within the Cline shale,” he added. Eighteen wells were drilled as part of the company’s Cline drilling program in 2011, and Laredo had two horizontal rigs drilling in the program at year-end. Efforts are under way to optimize well performance according to lateral length, fracture density, proppant amounts and pumping rates. Laredo also has completed six horizontal wells in the Wolfcamp shale. “This is all very fast moving,” Foutch commented. “No one was talking about horizontal Wolfcamp even 18 months ago. We think there will always be vertical drilling in the Wolfberry, but the results in the horizontals are such that you’ll see expanding horizontal drilling activity. We were


AREA OVERVIEW TITLEMAX SAN ANGELO, TX


Area Description

The formerly low profile Cline shale, equivalent to the Cisco, has captured the attention of Tulsa-

based Laredo Petroleum and, more recently, other operators. Laredo’s Permian activity is centered on the basin’s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin. The company’s production/exploration fairway is about 20 miles wide and 80 miles long. In 2011, it drilled 262 wells (234 operated) on its Permian Basin assets with a 100 percent success rate on the 239 wells that were completed during 2011. “The overall Wolfberry interval, which is the principal focus of our vertical drilling activities, is an oil play that also includes a liquids rich natural gas component,” said Laredo founder, chairman and CEO Randy Foutch, an AAPG member. “Prior to our purchase of Broad Oak, the exploration and drilling efforts in the southern half of our acreage block were centered on the shallower part of the Wolfberry,” he said. “But the emphasis in the northern half has

always been on the deeper intervals, including the Wolfcamp, Cline shale, Strawn and Atoka formations. “We have identified significant potential throughout our total acreage block for the entire Wolfberry interval from the shallow zones to the deepest,” he noted. Consequently, the company expanded its drilling program to include a horizontal component targeting the Cline and Wolfcamp shales. “Our Cline shale drilling began after we conducted an extensive technical review, including whole core analysis and single zone testing in vertical wells,” Foutch said. “We believe the Cline shale exhibits similar petrophysical attributes and favorable economics compared to other liquids-rich shale plays, such as in the Eagle Ford and Bakken shale formations. “We have acquired

3-D seismic data to assist in fracture analysis and the definition of the structural component within the Cline shale,” he added. Eighteen wells were drilled as part of the company’s Cline drilling program in 2011, and Laredo had two horizontal rigs drilling in the program at year-end. Efforts are under way to optimize well performance according to lateral length, fracture density, proppant amounts and pumping rates. Laredo also has completed six horizontal wells in the Wolfcamp shale. “This is all very fast moving,” Foutch commented. “No one was talking about horizontal Wolfcamp even 18 months ago. We think there will always be vertical drilling in the Wolfberry, but the results in the horizontals are such that you’ll see expanding horizontal drilling activity. We were


1 | TitleMax

only ones doing much Cline work until maybe six

months ago, and now the industry has picked up on

it,” Foutch continued. “We anticipate it will turn out to

be a pretty spectacular world class horizontal oil shale

target.”

There’s another key factor at work in this big play –

the money. “At the start of 2000, oil was about $20

a barrel,” another industry player noted. “Because it

went up, we could afford to implement these huge

fracturing techniques where we’re fracturing these

10,000-feet-deep vertical wells with a million gallons of

water. “When this began, the cost to drill and complete

a well was $700,000, and now it’s $1,700,000,” he

said. “This is mainly due to increased costs, such as

more fracturing stages and adding more Wolfcamp

and other formations. Plays such as this are a big deal

for the players and for anyone who uses anything

even remotely related to oil, i.e. everyone. “There will

be a million acres or more involved in this play,” he

predicted. “If it’s all drilled out at 40-acre spacing, it

should recover about three billion barrels of oil. “The

U.S. Geological Survey said it’s the largest discovery

in the last 50 years in the Permian Basin.”

THE CLINE SHALE: A BRIEF OVERVIEW

The Cline Shale (also known as the Lower Wolfcamp)

lies over a very large area on the eastern shelf of the

Permian Basin. The “Cline” is a localized name for the

Pennsylvanian aged shale that some recognize as the

D bench of the Permian aged Wolfcamp. The Cline

source rock lies on a broad flat shelf, with very little

relief.

• In short, the Cline is an organic rich shale, with

Total Organic Content (TOC) of 1-8%, with silt

and sand beds mixed in. It lies in a broad shelf,

with minimal relief and has nice light oil of 38-

42 gravity with excellent porosity of 6-12% in

thickness varying 200 to 550 feet thick.

• Active players in the shale include Devon Energy,

Chesapeake, Firewheel Energy, Apache Energy,

Laredo Petroleum, Exco, Callon Petroleum,

Pioneer Resources and others.

• Counties included in the shale are Fisher, Nolan,

Sterling, Coke, Glasscock, Tom Green, Howard,

Mitchell, Borden and Scurry.




the only ones doing much Cline work until maybe six months ago, and now the industry has picked up on it,” Foutch continued. “We anticipate it will turn out to be a pretty spectacular world class horizontal oil shale target.”

There’s another key factor at work in this big play – the money. “At the start of 2000, oil was about $20 a barrel,” another industry player noted. “Because it went up, we could afford to implement these huge fracturing techniques where we’re fracturing these 10,000-feet-deep vertical wells with a million gallons of water. “When this began, the cost to drill and complete a well was $700,000, and now it’s $1,700,000,” he said. “This is mainly due to increased costs, such as more fracturing stages and adding more Wolfcamp and other formations. Plays such as this are a big deal for the players and for anyone who uses anything even remotely related to oil, i.e. everyone. “There will be a million acres or more involved in this play,” he predicted. “If it’s all drilled out at 40-acre spacing, it should recover about three billion barrels of oil. “The U.S. Geological Survey said it’s the largest discovery in the last 50 years in the Permian Basin.”

THE CLINE SHALE: A BRIEF OVERVIEWThe Cline Shale (also known as the Lower Wolfcamp) lies over a very large area on the eastern shelf of the Permian Basin. The “Cline” is a localized name for the Pennsylvanian aged shale that some recognize as the D bench of the Permian aged Wolfcamp. The Cline source rock lies on a broad flat shelf, with very little relief.

• In short, the Cline is an organic rich shale, with Total Organic Content (TOC) of 1-8%, with silt and sand beds mixed in. It lies in a broad shelf, with minimal relief and has nice light oil of 38-42 gravity with excellent porosity of 6-12% in thickness varying 200 to 550 feet thick.

• Active players in the shale include Devon Energy, Chesapeake, Firewheel Energy, Apache Energy, Laredo Petroleum, Exco, Callon Petroleum, Pioneer Resources and others.

• Counties included in the shale are Fisher, Nolan, Sterling, Coke, Glasscock, Tom Green, Howard, Mitchell, Borden and Scurry.


Area Description


the only ones doing much Cline work until maybe six months ago, and now the industry has picked up on it,” Foutch continued. “We anticipate it will turn out to be a pretty spectacular world class horizontal oil shale target.”

There’s another key factor at work in this big play – the money. “At the start of 2000, oil was about $20 a barrel,” another industry player noted. “Because it went up, we could afford to implement these huge fracturing techniques where we’re fracturing these 10,000-feet-deep vertical wells with a million gallons of water. “When this began, the cost to drill and complete a well was $700,000, and now it’s $1,700,000,” he said. “This is mainly due to increased costs, such as more fracturing stages and adding more Wolfcamp and other formations. Plays such as this are a big deal for the players and for anyone who uses anything even remotely related to oil, i.e. everyone. “There will be a million acres or more involved in this play,” he predicted. “If it’s all drilled out at 40-acre spacing, it should recover about three billion barrels of oil. “The U.S. Geological Survey said it’s the largest discovery in the last 50 years in the Permian Basin.”

THE CLINE SHALE: A BRIEF OVERVIEWThe Cline Shale (also known as the Lower Wolfcamp) lies over a very large area on the eastern shelf of the Permian Basin. The “Cline” is a localized name for the Pennsylvanian aged shale that some recognize as the D bench of the Permian aged Wolfcamp. The Cline source rock lies on a broad flat shelf, with very little relief.

• In short, the Cline is an organic rich shale, with Total Organic Content (TOC) of 1-8%, with silt and sand beds mixed in. It lies in a broad shelf, with minimal relief and has nice light oil of 38-42 gravity with excellent porosity of 6-12% in thickness varying 200 to 550 feet thick.

• Active players in the shale include Devon Energy, Chesapeake, Firewheel Energy, Apache Energy, Laredo Petroleum, Exco, Callon Petroleum, Pioneer Resources and others.

• Counties included in the shale are Fisher, Nolan, Sterling, Coke, Glasscock, Tom Green, Howard, Mitchell, Borden and Scurry.


Area Description

2 | TitleMax

1 mi 3 mi 5 mi

Population

Population 6,422 64,085 94,936

2013-2018 Annual Rate 0.95% 1.09% 1.05%

2013 Male Population 48.9% 49.2% 48.8%

2013 Female Population 51.1% 50.8% 51.2%

2013 Median Age 38.0 31.1 33.2

Households

2013 Total Households 2,663 24,508 36,847

2013-2018 Annual Rate 0.76% 0.98% 0.94%

2013 Average Household Size 2.40 2.43 2.45

Race and Ethnicity

White Alone 79.1% 76.6% 78.4%

Black Alone 3.8% 6.4% 5.7%

American Indian Alone 1.1% 0.9% 0.9%

Asian Alone 0.6% 1.1% 1.3%

Pacific Islander Alone 0.1% 0.1% 0.1%

Some Other Race Alone 12.8% 11.6% 10.4%

Two or More Races 2.6% 3.3% 3.2%

Hispanic Origin (Any Race) 54.2% 44.6% 39.9%

Median Household Income

2013 Median Household Income $35,953 $35,701 $40,113

2018 Median Household Income $44,719 $42,581 $50,579

2013-2018 Annual Rate 4.46% 3.59% 4.75%

1 mi 3 mi 5 mi

Average Household Income

2013 Average Household Income $54,649 $48,714 $54,533

2018 Average Household Income $63,284 $56,257 $62,763

2013-2018 Annual Rate 2.98% 2.92% 2.85%

Per Capita Income

2013 Per Capita Income $23,192 $20,079 $22,273

2018 Per Capita Income $27,001 $23,000 $25,547

2013-2018 Annual Rate 3.09% 2.75% 2.78%

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018.


DEMOGRAPHICS 2013

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