FRISCO, Texas, July 06, 2017 (GLOBE NEWSWIRE) -- Elite Group, Inc. (OTC:ELTZ) is proud to announce the signing of a Purchase Agreement to acquire a 75% Working Interest in the previously announced 2 well package in the Permian Basin of Texas. The company has arranged for $200,000 in debt financing for this acquisition, increasing shareholder equity without increasing the number of outstanding shares.
Initial production from these wells is estimated at 20 barrels per day plus 350 – 400 MCFD, indicating a payout of approximately 12 months. The wells are both in the San Andres formation, at around 4500 feet in depth. This formation is a multi-billion barrel field in the Permian Basin.
The second Purchase Agreement is for Bullseye Yard Services, LLC. We will hold a 100% ownership of the company. Bullseye is an existing tank wash facility and oilfield equipment cleaning company located in Big Lake Texas. They currently service many locations in the Permian basin and Elite feels that they would be a perfect fit for our growth strategy.
Elite has arranged for $350,000 in debt only financing for this purchase, again increasing shareholder equity without increasing outstanding shares.
We anticipate a quick closing of these acquisitions and will give greater details of both projects at close.
Elite Group CEO Terrence Tecco stated, “We have been working diligently to reward our loyal shareholders with quality, producing and profitable acquisitions. Our overall strategy of building a large multifaceted corporation is proceeding nicely. We also have other projects that are in negotiations that we should be able to announce soon.”
“Thank you all for being patient. Quality acquisitions are not easy to find, and sometimes take longer than we would like to complete. Be assured that I intend to create a company all of us will be proud of,” Mr. Tecco added.
The Permian Basin, located in Western Texas and Southeastern New Mexico covers an area approximately 250 miles wide and 300 miles long. It was first discovered in 1925 and to date has produced over 29 billion barrels of oil and 75 trillion cubic feet of natural gas. The basin’s top producer has production estimated at more than 230,000 barrels of oil per day.