Texas Oil Field Expansion

About this Property

The Texas Oil Field Expansion project offers investors direct participation in the development of three new horizontal drilling wells in the prolific Permian Basin — the most productive oil field in the United States and one of the lowest-cost production regions in the world. This project is operated by a licensed independent oil and gas company with over 25 years of Permian Basin experience and a proven track record of successful well completions. THE PERMIAN BASIN ADVANTAGE The Permian Basin spans West Texas and southeastern New Mexico and is responsible for approximately 45% of total US oil production. Its geological characteristics — multiple stacked pay zones, high porosity, and exceptional permeability — make it uniquely productive. Horizontal drilling and hydraulic fracturing technology have unlocked reserves that were previously uneconomical, driving a renaissance in American energy production. PROJECT DETAILS The three target wells have been identified through 3D seismic analysis and offset well data, with estimated recoverable reserves of 850,000 barrels of oil equivalent (BOE) across all three wells. Drilling is scheduled to commence within 60 days of funding completion, with first production expected within 120 days. The wells will be connected to existing pipeline infrastructure, eliminating transportation risk. REVENUE MODEL Investors receive a proportional working interest in the wells. Revenue is generated from oil and gas sales at prevailing market prices, with the current WTI crude price providing strong economics. At $75/barrel and projected production rates, the wells are expected to generate gross revenue of $8.5M in Year 1, declining gradually as the wells mature. Net revenue to investors, after royalties (20%) and operating costs ($18/BOE), is projected at $4.2M in Year 1. PROJECTED RETURNS Based on current commodity prices and production projections, investors can expect a 3-year IRR of 28–35%. The investment is further protected by a commodity price hedge covering 70% of projected production at $72/barrel for the first 18 months. RISK PROFILE Moderate. Geological risk is mitigated by extensive pre-drill analysis. Commodity price risk is partially hedged. Regulatory risk is low given the established Permian Basin operating environment.