Specializing in the

Acquisition of Assets

relating to
Oil Field Water used in upstream Oil & Gas

Executive Summary

Elite Group, Inc. is a Nevada corporation established to acquire water properties for the oilfield service sector. ELITE Group, Inc. specializes in the acquisition of assets relating to the management of oilfield water used in upstream oil and gas operations. Management's objective is to acquire and consolidate water processing assets in prolific oil and gas exploration areas (Primarily in the Eagle Ford and in the Permian Basin). Management believes it will accomplish its goal to maximize shareholder value through strategic acquisitions, effective business model design and economies of scale to a fragmented industry. ELITE Group, Inc. will control the entire process from wellhead to the final destination and use the most environmental friendly practices in all aspects of our operations to protect and conserve the environment for future generations. In addition, ELITE Group, Inc. has established a subsidiary to acquire non-oil related income producing companies.

For investment information and News on Elite Group, click here.

SEC Filings

10K-3-31-2016 | 10Q-6-30-2016 | 10Q-9-30-2016 | 10Q-12-31-2016

Market

Water involved in oil and gas production (produced water) involves hundreds of thousands of wells, some operating for 20 to 35 years. During the lifetime of these wells, increasing volumes of produced water (largely coming from producing oil wells with a growing water-cut) there's a need for constant attention and treatment, more so now that the oilfield is receiving more regulatory scrutiny. As a result, there are requirements for improved fluids and water management for huge volumes of produced water.

Outside of North America oil wells are producing in excess of 200 million barrels of water per day, on an average of almost three barrels of water per barrel of produced oil. In US legacy plays, like the Permian, the ratio of water to oil in production can exceed 95% in some cases. Overall, sources indicate 75% to 95% of all "waste" generated by oil and gas development comes in the form of produced water. In a recent presentation, Haliburton indicated that on average there will be ~ 100,000 barrels of water required for a typical frac job. The frac flowback volume share of this total can vary by shale play ranging from 15% in the Eagle Ford and up to 40% in the Permian and Mississippian shales.

There are requirements such as water supply, regulations, and transportation (principally trucking) which typically account for 65% to 80% of total oilfield water management expenditures. As reported by the New York Department of Environmental Conservation -Division of Mineral Resources, there could be at least 600 truck visits to single shale well that require frac water and frac sand delivery, as well as the truck removal of flowback water. We believe that there is the potential for even more of an accelerated-cycle growth in the management of frac-related oilfield waters and also for produced waters, in their new role as water volume provider, for recycling and reuse in drilling and development.

ELITE SWD

ELITE SWD is a salt water disposal property located in Carrizo Springs, which is in Dimmit County, Texas. It is centrally located in the middle of numerous producing oil wells and oil wells that have yet been fractured. ELITE SWD is currently servicing 25 to 35 truckloads per day of disposable water, and it’s currently averaging a net income of $35,000.00 per month. ELITE SWD has current operation expenses that are higher than normal due to several factors that we will upgrade beginning in March. This SWD well has been operating on a rented compressor instead of electricity, which results in the excessive monthly rental and fuel cost of $35,000 per month. A permit has been issued for an electrical hookup and after we upgrade the property we will save over $25,000 per month. We will be installing new tanks and separators that will double the skim oil production, and we will also be automating the disposal system which will alleviate the need of four of the current employees. A new wellhead pressure permit has been issued by the Texas Railroad Commission and that permit will enable the well to accept an additional 3500 barrels of water per day. Also, in addition to our current clientele we have acquired a take or pay contract with a major producer of over 3000 barrels per day. That take or pay contract, for this SWD, will result in additional yearly revenue of $750,000.

YO RANCH SWD

ELITE has signed a letter of intent to purchase the YO Ranch SWD, and it’s located in Live Oak County, Texas. The YO Ranch SWD property includes a salt water disposal well, which is has a permit for 25,000 barrels per day. The property includes a 4000 foot deep Carrizo fresh water well with a capacity of 43,000 barrels per day. Also included at this site are a lined pit, with a capacity of 56,000 barrels, and a solids recycling center along with a truck washout station. One of the key points to ELITE wanting to acquire this property is that there are very few solid recycling sites in this area of Texas. So, that will enable us to provide this high demand recycling service, and we will be able to facilitate any clientele within a 90 mile radius.

BURKS 624 SWD

ELITE is acquiring the Burks SWD in La Salle County. The well, which is permitted for 4500 barrels per day, will be begin accepting trucks May l, 2016. We expect monthly revenues of approximately $50,000.00.

WILEY LEASE LLC

ELITE is acquiring a majority interest in Wiley Lease LLC. The business consists of 24/7 trucking operations with 4 active salt water disposal sites and services customers in Atascosa and McMullen counties in Texas with revenues of $35 million in 2015.

Wiley Lease LLC business includes:

  • 3 disposal sites in (4 wells) in Atascosa county and 1 disposal site in McMullen County.
  • 55 trucks and 53 trailers
  • Additional permit in Atascosa County for a new facility.
  • Roustabout service for on sight field operations providing manpower, materials and equipment.
  • 45% ownership in reclamation plant located on Gossett Lease.

Wiley Lease LLC generates revenue from a variety of activities which include a trucking fee; the customer pays a fee to transport saltwater from the wellhead to the disposal site. A disposal fee; the producer pays a fee to dispose of the saltwater into a SWD. Oil skim; crude oil entrained in the saltwater is skimmed at the disposal well, separated and sold at the prevailing crude price. The company typically prefers to negotiate a rate with the customer that includes both trucking and disposal services, but also has the ability to charge for only trucking or only disposal if desired. Offering both transportation and disposal is a competitive advantage in the marketplace because the customer prefers a one stop shop solution.

Bringing Natural
Treasures
to the Surface
x

Terrence A. Tecco

Mr. Tecco’s market and management experience began as a registered representative for Merrill Lynch in the Canton, Ohio office holding Series 7 and Series 22 licenses. After his tenure with Merrill Lynch he became Vice President of Buckhorn Oil Company with offices in Houston, Texas and Columbus, Ohio; where his duties included raising capital for drilling and land acquisitions. During his tenure as Vice President of Buckhorn Oil Company he over saw the drilling and completion of over l50 producing Oil Wells.

Mr. Tecco has gained some of his vast experience in the public markets by representing RieChad USA as Vice President. While he was VP with RieChad his duties included, but were not limited to, being in charge of mergers and acquisitions. Most recently, since July of 2000, as President of KPV Holdings; Mr. Tecco has participated in multiple business projects that assisted private companies with reverse mergers into public entities. Mr. Tecco was a long time member of the American Association of Petroleum Landman. He is a graduate of Kent State University with a degree in Bachelor of Finance in Business Administration and he also attended graduate school at The Ohio State University.

Marc Sharinn Esquire

Mr. Sharinn gained experience in the field of investment banking while working as a registered representative for securities brokerage firms. Mr. Sharinn concentrated his efforts in the private placement and structured finance arenas. He also founded and operated private financial consulting and management firms that acted as investment consultants to high net worth individuals and institutional investors. Mr. Sharinn's duties included the structural design of the capital placements, the creation of the particular security used in the various transactions and their respective trading and or other exit strategies. From 2002 thru 2005 Mr. Sharinn managed the Breckenridge Fund, LLC, which a structured finance investment fund with an investment strategy similar to that of Deer Creek Capital, LP and Deer Creek Fund II, LP is the investment fund Mr. Sharinn currently maintains a position as Managing Member.

Marc Sharinn earned a Juris Doctor degree and Dean's List recognition from St. John's University School of Law, where he focused his attention in the areas of corporate and securities law. Mr. Sharinn also graduated from the University Of Albany School Of Business with honors and received a Bachelor of Science degree in Business Administration.

Management

Terrence A. Tecco

View Profile

Marc Sharinn Esquire

View Profile