William Weekley

San Antonio, TX (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)

South Texas Oil & Gas LLC

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Location: Corpus Christi
Industry: Energy
Year Founded: 2019
Number Employees: 1-10 people
Business Stage: Growth (not profitable)
Entity Type: Limited Liability Company
Description: South Texas Oil & Gas LLC “Lease Bank” Fund I $1,000,000 Fund I 10.0% Return on Employed Funds 2.0% on Standby Funds 1.0% Royalty Within the Oil and Gas Industry there are many ways to invest. Before anyone can drill a well, they must have access to the land. More specifically the minerals under the land. Unlike most countries a large percentage of the minerals in the US are controlled by “private mineral owners” which in most cases are the landowners but not all. South Texas Oil & Gas LLC “Lease Bank” Fund I (LBI) has been formed to secure the rights to access minerals (oil and gas specifically) in Texas. The fund will not “buy the minerals” but will lease them for up to five years. While producing the lease is held by production. After considerable due diligence, we approach the landowner or mineral owner and will negotiate a lease. The lease will spell out the terms and conditions to extract the minerals and the payment the mineral owner will receive. How Lease Bank Members get paid: Assumptions: 1) 40 acres lease 2) $25,000 lease bonus per acre payable at signing 3) Average price of oil is $40.00/BBL 4) Well produces 100,000 barrels 5) LBI sells the lease and the members receive money back plus 10% and get a 1.0% Royalty 6) As soon as the Lease is sold the moneys are available to reinvest in additional leases so the funds can turn multiple times/year. Standby funds will earn 2.0% annually. Note 40 acres $ 625/ acre $ 25,000 1 40 acres $ 688/acre $ 27,500 5 100,000 bbls $ 40.00/bbl $ 4,000,000 3,4 Tax $ (500,000) 12.5% Royalty Calculation $ 3,500,000 1.0% $ 35,000 Profit Return Short Term Profit to LBI $ 2,500 10% 5 Long Term Royalty Income $ 35,000 140% 5 Total Profit $ 37,500 150% The Company: South Texas Oil & Gas LLC (STXOG) is a Texas Limited Liability Company formed in February 2019 for the purpose of developing oil and gas reserves in South Texas that have been overlooked due to price and timing of the Eagle Ford Shale play. There are many identified and proven sands that have been undeveloped over the past two decades. The Wilcox play has been produced and generated profits when oil prices were as low as $25.00/barrel in prior decades. These are conventional wells that are 6,000 feet deep and do not require fracking. Purpose: STXOG plans to lease and drill across 300 square miles in McMullen, Atascosa and Live Oak counties. STXOG has 300 contiguous square miles of 3D Seismic in this area and has spent the last six months analyzing the information with two very well-known Geologist/Geophysicist and a small team of geotechs. Competitive Advantage: STXOG has gathered and processing 300 squares of 3D seismic. The team that’s been assembled has over twenty years of experience in this field alone and has extensive knowledge of the existing Wilcox production. We are also working closely with legal teams that are active with the current land/mineral owners. Primary Focus: STXOG has identified over 100 prospects in the Wilcox trend (6,000 foot) which is our primary focus. While doing so we have also encountered many Olmos, Eagle Ford and Edwards prospects as well. We have studied less than one-third of the Seismic data. Economic & Operations: It is STXOG’s objective to develop reserves that can be produced with prices as low as $25.00/barrel. We are also using or cumulative knowledge and slight downturn to capitalize on our drilling and development cost. Turnkey drilling and completing cost are less than $700,000. The average well will produce 150,000 barrels with daily production rates starting between 85 to 100 barrels per day.