Elite Group Inc. announced 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 4,500 feet in depth. This formation is a multi-billion barrel field in the Permian Basin. 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.