OVERVIEW


Total Team Petroleum is a full service exploration and development oil and gas company formed to produce the highest quality up stream product to mid-stream end users industry wide. Collectively, our management team has over 45 years of experience in the development, drilling and operating of oil and gas projects in over 13 states across the country. This skilled team of professionals coming together is the result of the culmination of years of industry specialists working together, such as geologists, engineers, land men, drillers and service providers who have completed over 4000 oil and gas wells collectively throughout their careers.

The goal of the Total Team Petroleum management group is to build a world-class oil and gas company with the development of low cost underdeveloped assets and through an aggressive merger and acquisition plan as a main consolidation platform. Our team is committed to deliver the best possible results to its valued shareholders while using the newest technology to mitigate environmental and social risks involved with the development and production of these resources throughout local communities nation wide.


BATEMAN OIL FIELD


This project contains 29 low risk shallow wells located in Austin Texas, which will be developed in a 2-phased work program within the 1st 2 quarters of 2020. The 1st phase of work will be focused on restoring the targeted wells back into viable levels of production at little expense to the company. This initial phase will include some additional upgrading to the well equipment such as new tubing, down hole pump replacements and acidizing formations to increase the porosity and permeability within open zones which will maximize low cost productivity.

The 2nd phase of the work program will be focused on the production of the undeveloped or bypassed zones behind the pipe in at least 25 of the wells, which was previously not produced within this oil field. These identified zones have been proven to produce prolifically in this oil field and throughout the surrounding area after our team of oil and gas professionals conducted carful examination. This research included the review of cumulative analysis of well production within the zones in question in the surrounding area; decline yield production rates, analysis of the original mud logs and well logs on the project that had been documented when the oil field was originally drilled. A final determination was rendered that the proposed phase 1 work program could be completed with little risk; these wells can be restored back into production rates of 2 to 4 bopd utilizing a low capital cost outlay. Once profitable cash flow is established the 2nd phase work program will begin which recompletes untouched zones that can generate production rates commensurate with historically newly drilled wells, which have shown demonstrated 15 to 100 bopd previously. All these development activities can be completed for a fraction of the cost of drilling new wells and our specialized team has spent decades in finding these types of opportunities and exploiting them for their valuable resources remaining. The targeted work program of the “under developed” portion of the Bateman oil field has been geared specifically to insure that a potion of the low cost phase 1 revenue be utilized to exploit the remaining untapped production zones. This organic approach allows the company to minimize the long-term development capital outlay for this project and focus on additional development opportunities during the company’s growth stage.


KEY HIGHLIGHTS


  • Executed JV agreement on the Batemen Oil field in Austin Texas
  • Approximately 1,000,000 bbls of recoverable oil ($50 million gross value @ $50 per barrel)
  • Combination of low cost production and development on existing bypassed zones
  • 23 wells ready to be put back on stream
  • Total of $560,000 for Phase 1 & 2 (6 months time to complete work programs)
  • 1 drilling rig and 2 service rigs ready for deployment
  • Completed PV report
  • Drilling programs outlined
  • Pipeline of additional acquisitions
  • Plans for public listing

The project is located 35 miles southeast of Austin, in Basdrop county and is located 1 mile east of Red Rock on County Road 812 off, 12 miles east of US 130.


SUMMARY OF THE BATEMAN PROJECT


The Batemen oil field is located 35 miles South East of Austin, 50 miles northeast of San Antonio, 2 miles west of Red Rock, Texas in Bastrop County. This project contains 349 acres within three leases, the “Seidel”, “Voight”, and “Nauert” that comprise the total overall oil and gas field collectively. All leases are held in force and effect by existing production with ongoing operations and there are no claims against operations or the lease rights whatsoever. There are 29 wells total and 25 of which are completely equipped with pump jack, tanks, down hole pumps, electric lines, and flow lines which are installed and in need of some repair. The remaining wells are to be utilized as water injection and pressure maintenance wells and will not require the equipment normally needed for producing wells. One oil well is producing currently and two others are mid completion in existing zones that will be online shortly. All wells have been tested for fluid level and bottom hole pressure and contain fluid levels ranging from 45% to 75% of a new well thus having a large amount of unproduced reserves from the open zones currently. The depth of the wells range from 1900’ to 3400’ with the most productive zones between 1900 and 2400’ in the upper and/or lower Dale Lime as well as additional productive zones in the well known Austin Chalk. In nearly every well there are undeveloped zones, typically one zone of the Dale Lime sections and one or more zones of the Austin Chalk sections. The technical reason for the undeveloped zones is simply that only 150’ to 200’ of total 400’ of the formation was opened and this is represent in most wells observed. This additional untapped area was left behind due to the overall size of the completion when the wells were completed. These formations are all very productive historically in the Austin Chalk and previously have generated several wells in the field that have produced 500 to 1000 bopd. We anticipate newly completed wells to have initial conservative production rates ranging from 20 to 50 bopd or more and these zones will be our primary targets during development work planned. Additionally as an example one of the oil wells with the field has a twin log showing production output comparable to these large 1000 bopd oil wells and that location has been identified as the first well to be recompleted within the work program mentioned above.


HISTORY / FAULT / MAP


After its initial discovery well in the 1930’s, located about 4 miles south of the project leases, the field expanded slowly northward over the years, typically as a result of a new discovery of a large amount of oil. As the field expanded northward, the formations seemed to develop much better as historical records indicate. However, the field was never fully developed due to many obstacles, including the operator’s lack of experience with the uniqueness of the formation, paraffin content in the oil and lack of financial capability coupled with an unclear understanding of the oil resource remaining behind the pipe in additional formations.

The wells in the Bateman field are primarily productive from the Dale Lime, (assumed by some to be an upper section of the Austin Chalk) and the Serpentine volcanic extrusion which has proven productive in this field with a few wells productive from the Austin Chalk, which, though a primary producer in the area, county or district has been largely ignored but and offers excellent potential, being a source of production for the largest wells in the area.

Wells drilled south and west of the lease block on the Threadgill lease by our geologists Andy Alff in 1981, and again in 1987 flowed over 1000 bopd setting off a flurry of activity in the area each time. In spite of this historical production data, the previous operators of the field had largely ignored the Austin Chalk zone due to the reasons mentioned above. Just below this zone, the Buda zone, although apparent as an oil producer in the drilling logs and mud logs of wells in the field, are largely untested in the field development history. In summary, most wells in the lease block have two or more zones of untapped potential production that have not been tested or produced whatsoever. These zones would commonly represent 15,000 to 75,000 bbls of oil overall which should be produced from these undeveloped formations within the wells.

Oil production increased substantially in 1994 when a portion of the field was turned from an enhanced primary to a secondary recovery project and although production from the field was limited to 30 wells most of the time, the production came primarily from 12 to 15 wells according to the field personnel who worked the project locally. Production jumped to the 30-to-50-bopd range during this period in spite of the flood attempts being severally mismanaged. Additionally the development of paraffin problems in the well bore, tubing holes and dilapidated flow lines made it nearly impossible to handle continued operations. The program ended abruptly and in the year 2000 the bankruptcy of Omni oil and gas was filed. Since the leases and wells were pooled at that time it made it was nearly impossible to get new leases or signed division orders with all of the landowners involved so production remained limited and any development plans remained mired in red tape due to the plugging liabilities and non cooperative landowners.

Some of the other companies that previously attempted the development of these leases had only taken over operations briefly and as the project pass through less and less experienced hands the knowledge of remaining resources became less apparent. As mentioned none of these groups were unsuccessful due to mostly inexperience from what our team has gathered and a lack of needed industry specialists or consultants to complete the correct assessments required to exploit the fields full potential. As a result no additional attention was focused on placing the wells back into production or opening up new zones that had bypassed reserves and had not never been produced. The sufficient capital needed for the development of untouched zones was never deployed and fortunately our team discovered the many factors ignored by the then distracted operators, which must have been content with whatever limited production that was being made at the time. This is evidenced by the condition under which our team inherited the wells once newly leased. The previous operators left the wells in a sever condition of neglect with the majority of the wells tested having holes in the tubing, bad down hole pumps, electricity not hooked up, corroded connections, burned out pump jack motors, flow lines that leaked to list some of the many things mismanaged. There was absolutely no way that the wells could have viably produced in the last 10 years based on the findings of our team, both technically or legally based on the unitization of the properties which eventually occurred. Over 200 wells and 10 leases were unitized for the water flood in the late 90’s and resulted in landowners 2 miles to the south earning a part of wells drilled on these properties. This event reduced the mineral owners interest in the leases to less than 10% of what would be a normal royalty and resulted in unhappy landowners and lost leases that could not be resigned. If a landowner tried to sign a new lease they would be forced to share with all other unrelated landowners in the unitized leases and additionally the unitization created a bigger problem because if a new operator waned to focus on a few wells for development they would be now forced to take on the plugging liabilities of over 100 wells.

Our team spent nearly a year and a significant amount of capital to break up the unitization of the field in the Texas Rail Road Commission and the County Clerk’s office in Bastrop to remove these long standing problems, which inhibited the future development of these valuable oil assets. As a result of this carefully planned administrative work the oil wells within the Batemen field now require significantly less work and have a significantly reduced plugging liabilities to be put back into production under its new management teams care.


DEVELOPMENT PLAN & POTENTIAL


The leases were initially acquired by the current operator for the purpose of putting wells back on production, which had ceased to produce due to negligence, inexperience and lack of financial wherewithal during previous operators care. Production from this limited activity is expected to be enhanced quickly and this has been established during tests carried out on test wells with an anticipated range of 2 to 4 bopd initially. If this was the only production output that the oil field had to offer the project would show steady profitable production and the projected pay out would be within a 5 to 6 month period overall. However, when the well and field records were recovered and analyzed the original development plans changed immediately. It was discovered that most of the wells had 2 to 4 zones of probable production that had not received completion attempts and these were the historical zones that had a nearly 100% success rate in the Bateman field lease block itself. These new finding have created an additional development cost and enabled the group to assemble a new team of oil and gas professionals to build the Total Team Petroleum Company. As a result of these factors a new development plan was created to not only restore wells back into production by acidizing the zones to open the limestone reservoirs but to also open up untapped zones in select wells identified to have these untapped reserves ready for exploitation.


DEVELOPMENT WORK:


The project is designed to allow the production of the 25 wells to pay for the continued development of the entire fields unproduced formations. The company will be utilizing a portion of the revenue created by the restoration phase and continue the recompletion of the remaining wells from initial funding budgeted. This allows for revenue to be reinvested for the additional costs of longer term development of the oil field unproduced zones. The replacement cost of the wells if drilled and completed today would range from $250,000 to $350,000 per well. Due to most wells having several zones of untapped reserves, a re-entry, and acidizing of the formations should result in the equivalent production rates from wells which produced previously at a significant cost saving to the company. Any larger wells if discovered as discussed above are a bonus to the company’s development plan and change the economics anticipated considerably. The total time anticipated to complete the 2-phased work program is 6 months from the time the working capital is deployed.

NOTE: The Voight 205 has three of the formations, which are productive in the area highlighted and additional potential mentioned lies up-hole. The well is productive from the Upper and Lower Dale Lime and the Serpentine. The well was frac’d with 120,000 lbs of sand at the time of completion. The Austin Chalk that lies below these zones has been productive in the area and is the source of several 100 bopd wells in the field on offsetting leases. There were at least 4 wells, which encountered initial production rates exceeding 500 bopd, and 3 well that exceeded 1000 bopd in the field. This well could have been slim hole drilled or could be deepened an additional 100’ or more to encounter additional productive pay-zones of the Lower Austin Chalk Section, and another 50’ or more below to encounter the Buda formation.

PRODUCING FORMATIONS:
Though depths of the producing formations vary due to faulting in the field, the producing formations and depths are generally as follows: Upper Dale Lime: 1900’ – 2000’ Serpentine: 2000’ – 2050’ Lower Dale Lime: 2050’ – 2120’ Upper Austin Chalk: 2125’- 2225’ Lower Basal Austin Chalk: 2235’- 2475’. The additional formations that are not yet productive on the lease, have either historically produce in the field or the geological area according to the cumulative analysis, mud and well logs reviewed. These findings indicate that the following zones should be productive: Edwards Lime 2700’ to 3400’ Not productive in area but had shows in several wells drilled in the field and on these leases Buda Lime to 2600’, Pecan Gap Lime 1750’- 1850’ Lies within the Taylor Lime Taylor Sand from 1650’ to 1850’ (AKA Navaro “B” sand), Navaro Sand which lies between 850’ and 1450’ in most wells and is one of the most productive sands in the entire area has not been tested though logs and records indicate that this zone prolific and should be productive.

RESTORATION OF CURRENTLY OPEN ZONES
Based on recent tests of some of the existing wells, we intend to work over certain wells, which have been productive previously and expect production rates of 5 to 10 bopd initially for a period of 10 to 30 days before the production rate begin to decline to a rate of 2 to 3 bopd within the first month. This should pay out the costs of the entire phase 1 work over planned in the first several months and should maintain that stabilized rate until the wells is eventually reworked in phase 2. When reworked, the new production from untapped zone will be added to the existing production within the oil field and allow the company to focus on its next project.

PROJECTED PRODUCTION RATES & DECLINE YEILD CURVE ESTAMATES WITHIN UNTAPPED ZONES IN EXISTING WELLS
Based on records analyzed, we anticipate the production of wells where untapped zones are placed into production to have initial rates ranging from 10 bopd to as high as 100 bopd. We expect declines of 25% per month for several months, then 10 to 15% per year thereafter. For economic purposes we have used 16 bopd as an initial production rate of wells with untapped zones being newly entered. We feel this is a conservative decline yield curve based on historical production rates and the information available of surrounding historical production.

HIGH LEVEL PRODUCTION HISTORY:
There are a number of wells in the field that produced 500 to 1000 bopd, or at current prices, $500,000 to $1,000,000 for the first month’s revenues after newly drilled. This high rate of production is a result of better than normal porosity being enhanced with fracture induced with secondary porosity. These fractures are created along the fault lines, which allows the well to flow the oil at high rates due to fewer restrictions in the reservoir. These high producing wells also had certain characteristics related to the productive zone and it’s proximity an d relationship to the primary fault trap of the field. These characteristics are matched nearly identically in at least one well on our leases, the 115 Nauert, which is to be the first to test in the work program. Although we anticipate higher rates of production from some oil wells, the production rates of these types of wells have not been entered into the economic projections within this project.

ESTIMATED RESERVES AND VALUATION:
Existing zones have produced an estimated 300,000 bbls of oil in these wells and many of the wells still have bottom hole pressures of 40% to 75% thus giving us an estimated recoverable reserves of these currently producing zones another 200,000 to 300,000 bbls of oil or an estimated“net”value of $4,000,000 to $7,000,000 in producible reserves (phase 1) after royalty and operating expense. Estimated reserves of untapped zones could easily double these figures to a total range of 600,000 to 1,000,000 bbls of recoverable oil (phase 2) and if the shallow Navarro sands above are commercially productive this figure could double again to range from 1,200,000 to 2,000,000 bbls of oil reserves total.

DRILLING POTENTIAL & ADDITIONAL DATA
There is also the strong possibility of drilling new wells in the field which may offer a great deal of potential if drilled horizontally through these zones discussed above. However, the drilling of additional wells will likely be after the completion of the work-over of all of the wells and the decision to do so will be largely based on the success of the first 25 wells within the planed work program.


SAMPLE LOGS, CORE ANALYSIS , ETC


The following logs are samples of nuclear and electric logs from wells in the field and the evaluation of these wells. They represent a sample of two of the wells we intend to rework and acidize to maximize production potential of the field. All well data is available for inspection for inspection. The Nauert 115 well is a geological twin well to two of the wells in the field that produced over 1000 bopd from the Austin Chalk which is untested in this well. Though we are not promoting that this well will achieve this rate, due to its proximity to the controlling fault trap in this part of the field, it is expected to be a very good producer in the Austin Chalk and other zones in the well, the Dale Lime and Pecan Gap. It will be the first well acidized under this project. The Voigt 211 was also a good well that produced 60 bopd initially, in 2011 when drilled, however was shortly abandoned. We picked up the well, put it back on pump and it currently makes between 2 and 4 bopd from existing zones that are open, however there is another 45’ of pay in this well that should be tested in the Austin Chalk and the Dale Lime, plus several zones uphole, including the Pecan Gap and the Navarro Sand. NAUERT #115 The Austin Chalk formation in this well is located is nearly an identical twin in its location in relation to the primary fault as two other wells in the field to the south which had initial production rates in excess of 1000 bopd and which produced over 20,000 bbls the first month. Due to the similarity of the logs of the well, the proximity of the well from the primary fault traps, we would anticipate that this well would also be very productive in the Austin Chalk. In addition, the Dale Lime which is the most productive zone in the field, and the Pecan Gap also offers very good potential due to its proximity to another fault.

The Pecan Gap formation above the Dale Lime appears to be very well developed in this field and in this well and can produce high volumes of oil and gas from its normally porous limestone and its fracture induced secondary porosity when stimulated and opened up with acid. It is recommended that the Pecan Gap in this well be perforated and acidized to stimulate production from this zone as soon as is practical. Until this time, it is likely ‘money in the bank” as the expression goes. VOIGHT #211 This well was drilled recently in 2011, was tested at 60 bopd and was produced little, yet has enormous potential. It was perforated and acidized in the Lower Dale Lime and the Upper Austin Chalk, as marked on these logs, leaving the most productive of these zones, the Upper Dale lime and the Lower Austin Chalk untouched as well as many potentially productive zones up the hole, such as the Pecan Gap, the Taylor and Navarro Sands as can be seen with this log.

PROJECTIONS

UOP

DISCLAIMER

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