B&B Financial Group LLC,

25
B&B Financial Group LLC, Norman-Mesa Limited Partnership Permian Basin Upton & Gaines Counties, Texas 650 Total Acres | 6 Oil Wells | 3 SWD This is not an offer to sell nor solicitation of an offer to buy any security listed herein. Such offer may only be made by a written prospectus in a jurisdiction wherein the offering is duly registered or exempt therefrom. This content is provided for informational purposes only. Nothing herein shall be construed as tax, legal, or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. There are no guarantees that any returns will be achieved. Potential investors should consult their attorney, accountant, and financial advisors before investing in oil and gas. ACCREDITED INVESTORS ONLY.

Transcript of B&B Financial Group LLC,

Page 1: B&B Financial Group LLC,

B&B FinancialGroup LLC,

Norman-MesaLimited PartnershipPermian BasinUpton & Gaines Counties, Texas650 Total Acres | 6 Oil Wells | 3 SWD

This is not an offer to sell nor solicitation of an offer to buy any security listed herein. Such offer may only be made by a written prospectus in a jurisdiction wherein the offering is duly registered or exempt therefrom. This content is provided for informational purposes only. Nothing herein shall be construed as tax, legal, or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. There are no guarantees that any returns will be achieved. Potential investors should consult their attorney, accountant, and financial advisors before investing in oil and gas. ACCREDITED INVESTORS ONLY.

Page 2: B&B Financial Group LLC,

Erica Rose Banks Deal, is a Managing Member of B&B, where started as a project manager when she was 18 years old at a venture capital office, where she learned about Oil and Gas, Stocks, SEO, Real estate, etc. She really drew towards the oil and gas sector; while she was in charge of the sales team of managing multiple oil and gas accounts, she received her bachelor's degree from UT in Business Management and Marketing. Erica got hired by her now-husband, who has over 25 years of experience in the oil and gas industry and inspired her into opening her own oil and gas company B&B Financial Group. With the invaluable experience her husband has taught her, she has been able to find the best projects for her investors. Erica will be there for any questions her investors may have and ensure they enter a reputable, profitable investment. When Erica is not working around the clock for her investors, she is a Dallas Casa Court advocate, working directly with judges in Dallas to ensure the kid she is responsible for in foster care is properly cared for.

Page 3: B&B Financial Group LLC,

B&B Financial Group, a husband-and-wife company, started doing oil and gas investment projects in 2015. Erica began as a project manager at 18 and worked her way to the top-finding her true passion in oil and gas sales. She later met her husband, Troy Banks, who has been in the industry for 25 years, and together they began B&B Financial Group. B&B specializes in already producing oil and gas wells that are local; giving the investors immediate revenue. Erica likes to make a foundation for her investors whether that means driving across Texas to meet you for the weekend or flying international in order to meet with an investor and seal the deal. She is determined to show investors that oil and gas can be a reliable source of passive income for future generations.

With Erica’s husband having been in the industry for 25 years, that’s given her the upper hand to pick the best projects around with the best crew. If you have any questions she will always be there, happy to help.

B&B Financial Group5050 Quorum Drive Dallas TX 75254

Office Line: 972.687.9137Direct Line: 214.640.0400

Page 4: B&B Financial Group LLC,

Norman Lease Permian BasinGaines County, Texas485 Acres100% WI and 75% NRI

Mesa Lease Permian BasinUpton County, Texas165 Acres100% WI and 80% NRI

Page 5: B&B Financial Group LLC,

Return on Investment

Page 6: B&B Financial Group LLC,

• The Permian Basin is a large sedimentary basin in the southwestern part of the United States. The basin contains the Mid-Continent Oil Field province. This sedimentary basin is located in western Texas and southeastern New Mexico. It reaches from just south of Lubbock, past Midland and Odessa, south nearly to the Rio Grande River in southern West Central Texas, and extending westward into the southeastern part of New Mexico. It is so named because it has one of the world's thickest rocks from the Permian geologic period. The greater Permian Basin comprises several component basins; the Midland Basin is the largest, Delaware Basin is the second-largest, and Marfa Basin is the smallest. The Permian Basin covers more than 86,000 square miles and extends across an area approximately 250 miles wide and 300 miles long.

• The Permian Basin lends its name to a large oil and natural gas producing area, part of the Mid-Continent Oil Producing Area. Total production for that region up to the beginning of 1993 was over 14.9 billion barrels. The Texas cities of Midland, Odessa, and San Angelo serve as the headquarters for oil production activities in the basin.

• The Permian Basin is also a major source of potassium salts (potash), mined from bedded deposits of sylvite and langbeinite in the Salado Formation of the Permian age. Sylvite was discovered in drill cores in 1925, and production began in 1931. The mines are located in Lea and Eddy counties, New Mexico, and are operated by the room and pillar method. Halite (rock salt) is produced as a byproduct of potash mining.

Permian Basin

Page 7: B&B Financial Group LLC,

Permian Basin

The Permian Basin “Will probably become the world’s largest oil patch,” says Bloomberg, drawing from research of the U.S. Energy Information Administration. If someone asks that basic Wall Street question in Fort Worth or Midland, “where’s the new money being made?" the answer is quick and simple for those who know what is going on in West Texas and Southeast New Mexico. Just look at the pink area, the Permian Basin, on the map. This area, a long-proven oil and gas area, is seeing production multiplied by new drilling methods, technology and equipment. Towns and cities in this area are awash in new business. High-paying jobs with huge sums of money are flowing in. And if trend studies are correct, this area will in the next few years be the world's largest and most valuable oil field. An entire new generation of "new wealth" is already in the making.

Page 8: B&B Financial Group LLC,

The Norman Lease producing property is located in the North Means Field in Section 11, Block A-20X, PSL Survey, Gaines County, TX with rights down to 5,000 feet. Primary production has been from the Queen A and B Sands at a depth range of 4,300 to 4,700 feet, with cumulative production of 517,766 barrels oil and 363,221 thousand cubic feet gas, from eight completions in eight wells to date. Average per well recovery was 64,720 barrels oil and 45,402 thousand cubic feet gas, with most of the Queen wells having initial production rates over 90 barrels oil per day. Significant re-completion and infill potential exists in the Queen Sands, as the current wells were drilled originally on forty (40) acres spacing. However, new field rules now allow for twenty (20) acres spacing between wells, which will allow for the drilling. of several new infill wells. Additional injection wells could also be drilled to create five-spot water flood patterns to increase production via waterflooding.

Norman Lease Permian Basin -Gaines County, Texas485 Acres - 100% WI and 75% NRI

Page 9: B&B Financial Group LLC,

According to an independent engineering evaluation by Incline Engineering (Midland, TX) estimated remaining Queen Sand PDP reserves total 15,200 barrels oil, with an NPV8 of $271,000 using a conservative $40 oil price. To date, the majority of production has been from the Queen B Sand, with significant uphole re-completion potential in the Queen A Sand which was only commingled in three wells with the Queen B Sand to date. Incline Engineering estimates PDNP behind-pipe reserves in the Queen Sands of 160,000 barrels oil with five behind-pipe workovers planned, for a total PDNP NPV8 value of $2,854,650.

Two wells tested the San Andres Formation below the Queen Sands, but never produced. The San Andres formation produces offset to the lease and is actively being developed via horizontal wells to the west and southwest. The wells could be completed in the existing vertical wellbores, or new horizontal wells could be drilled to exploit the deeper San Andres. Assuming four new horizontal wells at a total cost of $8,000,000 could result in reserves of 638,000 barrels oil (or 159,590 barrels oil per well). Total San Andres horizontal value (after investment) could result in an NPV8 of $12,388,000.

Norman Lease Permian Basin -Gaines County, Texas485 Acres - 100% WI and 75% NRI

Page 10: B&B Financial Group LLC,

Norman 1 (4216532525) - Drilled into the San Andres Formation and perforated, but no production data reported. It was then plugged back to the Queen B Sand. Queen A Sand was not perforated. Plan: Replace pumpjack, pump and acidize.Estimated Production - 15 BOPD.

Norman 2 (4216532610) - Drilled to the San Andres Formation with good shows on mud log but never tested. There was also a good show in the Yates. Converted well to an injector.Plan: Pull tubing, test tubing, set packer and acidize. SWD Well.

Norman 3 (4216532706) - Tested the San Andres Formation, but no production data was reported. This well was then completed in the Queen A and B Sands. This well had a good show in the Seven Rivers Formation. Plan: Replace pumpjack and acidize. Estimated Production - 5 BOPD.

Norman 4 (4216532775) - Completed in the Queen B Sand and the Queen A Sand has not been tested. Plan: Replace pumpjack and acidize.Estimated Production - 12 BOPD.

Wells Drilled on the Lease

Page 11: B&B Financial Group LLC,

Norman 5 (4216532894) - Completed in the Queen B Sand and then converted to an injector. The Queen A Sand was not tested in this well. Plan: Acidize. SWD Well.

Norman 6 (4216532924) - Completed in the Queen A and B Sands. In May of 1985, the Yates was perforated and tested. The Yates was acidized and swabbed dry. The well was shut-in until March of 2010 when it was re-completed in the Queen A and B Sands. Plan: Remove stuck pipe at 4,200 feet and restore production.Estimated Production - 20 BOPD.

Norman 7 (4216532997) - Completed in the Queen B Sand only. Queen A Sand to be perforated and tested. Plan: Replace pump with Norman 1 pump and acidize. Estimated Production - 5 BOPD.

Norman 8 (4216533171) - Completed in the Queen A and B Sands.Plan: Convert to S WD Well. SWD Well.

Total Estimated Production - 57 BOPD.

Wells Drilled on the Lease

Page 12: B&B Financial Group LLC,

Norman Lease Permian Basin -Gaines County, Texas485 Acres - 100% WI and 75% NRI

Page 13: B&B Financial Group LLC,

Norman Lease Permian Basin -Gaines County, Texas485 Acres - 100% WI and 75% NRI

Page 14: B&B Financial Group LLC,

Norman Lease Permian Basin -Gaines County, Texas485 Acres - 100% WI and 75% NRI

Page 15: B&B Financial Group LLC,

The Mesa Lease producing property is located in the Castle Gap Field in Section 100, FG Howard Survey, Abstract 1271, Upton County, TX with rights down to 3,700 feet. Production has been from the Grayburg formation over a depth range of 3,200 to 3,300 feet, with cumulative production of 29,817 barrels oil and 103 thousand cubic feet gas, from one completion in one well to date. There is the potential to drill 15 new wells in a five-spot waterflood pattern, as the lease is currently underdeveloped. In fact, Mito Resources began drilling successful horizontal Grayburg wells directly offset to the east and south of the Mesa Lease in 2017, with the best offset horizontal Grayburg well producing 89,921 barrels oil in only 3 years, and currently active at 28 BOPD. However, since the Mesa Lease is only 165 acres (ie. ½ mile x ½ mile), additional acreage would need to be leased (NW/4) in order to drill 1-mile laterals. The vertical infill/waterflood plan could be initiated with the current lease however.

Mesa Lease Permian Basin -Upton County, Texas165 Acres - 100% WI and 80% NRI

Page 16: B&B Financial Group LLC,

To date, only one well has been drilled on this lease:

Mesa 1 (4246132263) -Completed in the Grayburg formation in January 1985. In January 2018, a CIBP was set at 2,208 feet.

Current production: 20BOPD

Plan: Drill out of the CIBP and attempted to restore production.

Mesa Lease Permian Basin -Upton County, Texas165 Acres - 100% WI and 80% NRI

Page 17: B&B Financial Group LLC,

Mesa LeasePermian Basin - Upton County, Texas 165 Acres - 100% WI and 80% NRI

Page 18: B&B Financial Group LLC,

Mesa LeasePermian Basin - Upton County, Texas 165 Acres - 100% WI and 80% NRI

Page 19: B&B Financial Group LLC,

Mesa LeasePermian Basin - Upton County, Texas 165 Acres - 100% WI and 80% NRI

Page 20: B&B Financial Group LLC,

• Unique tax benefits.* Oil and gas investments have significant tax advantages. Several major tax benefits are available for oil and gas investors that are not available elsewhere. As an investor partner, you may be entitled to the following tax benefits:

• Write-offs for Intangible Drilling Costs (“IDC”)

• Depreciation of tangible drilling costs

• Depletion deductions

Tangible Drilling CostsJust the opposite of IDC's, anything that is not reusable

(i.e., equipment and depreciation)

Depletion AllowanceAccount for the reduction (production) of reserves as a

product is produced and sold. This represents up to 20% of the net income received.

Intangible Drilling CostsRepresents largest tax deduction in an oil and gas investment. Up to 70% of investment can

be written off in the year wells are drilled.

Tax Write Offs

Page 21: B&B Financial Group LLC,

Jeremy A. Paul, CEO. Eagle Natural Resources, LLC, is 32 years old, has nearly a decade of experience in the oil and gas sector with a proven track record of taking advantage of market opportunities–especially down market environments. Over the past year alone, he has spearheaded the efforts behind acquiring interest in thousands of net mineral acres across Texas and Oklahoma. ENR’s portfolio of held-by-production (HBP) properties currently features minority and majority interest ownership in over 85 producing wells.

Mr. Paul has spent a great deal of time and resources within lower risk re-development projects where an infusion of capital in proven-producing fields and an existing stable of wells will deliver solid return potential. With experience in all phases of upstream development including drilling, testing, completing, acidizing, hydraulic fracturing, and enhanced oil recovery techniques, Mr. Paul works with his technical team to implement plans designed to increase daily production and overall returns. Over his career, Mr. Paul has also strategically placed investor capital into developmental drilling to help amplify leasehold production while collaborating with oil and gas auction houses to divest certain assets with the objective of delivering a multiple return on investment.

Prior to forming the company, Mr. Paul provided consulting services to other independent Oil & Gas producers, overseeing the start-up and expansion of their private equity departments.

Jeff Sporl - Geophysicist and Geologist Jeff was hired by Eagle Natural Resources in August 2020 as a Geophysicist and Geologist, to aid in the re-development of their producing assets. In his 35 years of seismic interpretation and subsurface integration work, Sporl has accumulated an impressive well success record over 75% during his exploration career, with over 45 discovery wells drilled to date.

Jeff Sporl graduated with Highest Distinction with a Bachelor of Science degree in Geophysics from Penn State University in December 1984 (4.0 GPA major, 3.95 GPA overall), and began his career in petroleum exploration with Amoco Production Company in New Orleans, Louisiana, in January 1985. During his six-year tenure at Amoco, he worked in the offshore Louisiana Exploitation Group, and trained in seismic data acquisition, processing and interpretation.

At the age of 25, and with only two years’ experience, Jeff was selected as one of five lead Amoco geophysicists to evaluate Tenneco’s Gulf of Mexico properties in a $2.6 Billion acquisition attempt, and evaluated three of Tenneco’s largest offshore gas fields. He left Amoco with a successful well record of 8 of 11 (73%).

Biographies

Page 22: B&B Financial Group LLC,

Jeff then joined BHP Petroleum (Americas) in their Houston, Texas office, to explore offshore Louisiana and Texas. After a couple of successful wells on the offshore Texas shelf, Jeff was selected by BHP for a special deep water joint 3-D interpretation project with Shell, in the Auger Sub-Basin, where he interpreted over 125,000 acres, in under six months, using a state-of-the-art Shell 3-D seismic inversion dataset, which included the subsequent discoveries at the Cardamom, Oregano, and Macaroni Fields.

Jeff was then hired by Apache in Houston as a Senior Staff Geophysicist. His primary area of responsibility became the offshore Texas shelf, where he helped absorb the key Hall-Houston offshore acquisition, by generating and drilling 11 of 12 successful wells in just 20 months.

In 1995, Jeff acquired his own PC-based seismic interpretation workstation and started his own exploration consulting company, Streamline Exploration, which has had offices in both Houston, TX and Durango, CO, over the last 25 years. An initial two-year offshore prospect generation project with American Explorer of Lafayette, LA, which ultimately led to the IPO of Petroquest Energy, yielded gross reserves discovered over 100 BCFG, on a seismic budget of only $800,000.

Jeff leased and re-developed an abandoned natural gas field in shallow state waters of offshore Texas with its partner and operator AnaTexas Offshore. Two wells were drilled successfully and Buccaneer Energy utilized Streamline’s Pompano discovery to perform an IPO on the Australian Stock Exchange in 2008 (BCC.AX).

Jeff’s most recent discovery well was drilled in South Texas in the Miocene-Anahuac-Frio Trend, encountering ten potential pay zones in the Frio section, with the well testing 2.6 MMCFD + 12 BOPD. Jeff also identified, assembled, promoted and sold 9,800 acres of Midland Basin unconventional acreage, which included over 120 horizontal Wolfcamp and Lower Spraberrywell locations.

His main areas of expertise are in prospect generation; prospective exploratory trend studies; 2-D or 3-D seismic selection, acquisition, processing and interpretation; well log correlation and subsurface integration; pre-drill risk analysis and targeting; and field re-developments.

Biographies

Page 23: B&B Financial Group LLC,

Q- What does WI/NRI stand for

A- Working Intrest and Net revenue interest

Q-What does BOPD/MCFG stand for?

A-Barrels of oil per day/ Metric cubic feet gas

Q-What is a rework?

A- The wells have proven successful production and need new equipment on-site to up the production. Think of a remodel for a house, great bones just need some TLC.

Q-How is the revenue structured?

A-If you own 2% working interest and 1.5% net revenue then you own 2% of everything that is sold from the lease, after bills, taxes are paid you’ll make 1.5% of the sales

Q- Am I liable for what is on-site?

A- No, we have a million-dollar umbrella policy.

Q-What is a WI Assignment?

A- The recorded document indicating you own a hard asset on that lease requires a wet signature, My attorneys will mail them to you and we will pay to have them recorded and sent back to you. Think of this as a deed to a house.

Q-What are the tax benefits?

A-The IRS also gives a 15% depletion allowance against production revenue to allow for the drop in oil and gas reserves in a well. The non-recoverable expenses of an oil and gas well are known as “intangible drilling costs” (IDCs). These include things that you can’t resell later including fuel, drilling fluids, and wages. IDCs typically make up roughly 65 – 80% of the well cost, and you can deduct 100% of IDCs in year one of the projects.

Frequently Asked Questions

Page 24: B&B Financial Group LLC,

Q-What is my role?

A- To entrust B&B Financial group with your initial investment and trust us to do all the work on-site while you receive monthly updates and revenue. In black and white? Nothing.

Q-How long have you been doing this?

A- Banks has been in oil and gas project management since she was 18 and her husband/partner has been in oil and gas for over 25 years. B&B Financial Group was created after they married.

Q-How long will the rework take?

A- Every project is different though we strive to have rework to be completed no more than 3 months from the end of fundraising, we will continue to tweak it to max potential when permitted.

Q- Is this project registered with SEC/Texas state securities board

A-Yes.

Q-What happens after I invest?

A- If fundraising is still happening then you are in a waiting period until the final funds come in. Once fundraising is complete you will receive email updates monthly.

Q-Do I get updates?

A- Yes, monthly, and Erica is available if you ever have any questions or concerns

Q-Can I invest my IRA

A- Yes, we use Entrust and they can help you set up a self-directed IRA to ensure you get no tax penalties if you chose this route. This is a great option to have your money that is just sitting there be put to work, we will then direct your monthly disbursement to that self-directed IRA account. We also do 1031 exchanges.

Frequently Asked Questions

Page 25: B&B Financial Group LLC,

B&B Financial Group5050 Quorum Drive Dallas TX 75254

Office Line: 972.687.9137Direct Line: 214.640.0400

Recap:• One Unit is $20,000 for 2% working interest• 2% monthly disbursement after re-work is between $1300-$2100• Current Production 20BOPD after re-work up to 80BOPD• Direct ACH Monthly• Pay out projected to be less than 1 Year