NEW ORLEANS, Sept. 8, 2011 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO), a growth-oriented energy company
in the oil and gas industry, today reported on its progress on the
project to increase production on its Texas oil leases.
Stephen L. York, President and
COO of Treaty Energy Corporation, stated, "We want our shareholders
to know that our team has faced the hottest and driest summer in
Texas since 1980. The
extreme heat and dry climate have considerably affected ground
conditions. These conditions have caused failures of
equipment and electrical transformers which have led to a decline
in the overall production on our existing wells."
Mr. York added, "However, the good news is that Treaty Energy's
aggressive work-over plan has been able to offset the decline in
production and has even greatly increased the production of the
re-worked wells."
"Production on the first eight wells that have been re-worked
increased from 8 barrels of oil per day to 26.5 barrels per day,"
explained Mr. York. He explained further, "Treaty Energy has
also recently finished re-working an additional eleven wells, and
after about a week of steady production, we are expecting to
increase production to about 55 barrels of oil per day."
Treaty Energy has four other leases that are currently not
producing as they require a work-over on the injector wells and
electrical power lines. Work-over of these leases should be
completed by the end of September and is expected to increase
overall Texas production to 65 to
70 barrels of oil per day by that time.
Beyond the previously mentioned work-overs, Treaty Energy has 15
shut in wells spread over the Great Eight Leases that have been
shut in for more than 12 months. Upon completion of all
scheduled work-overs, the Company will then be able to more
accurately evaluate the additional shut in wells and re-work them
as necessary to bring them back into production.
Mr. York added, "The best estimate of Texas production on the currently owned and
paid for leases will be 75 to 90 barrels of oil per day after the
rework of the 15 shut in wells. Our goal by the end of 2011
is to be at 200 to 350 barrels of oil per day. This
production number can vary based on the number of new wells that
are expected to be drilled and completed. We expect to exceed
1,000 barrels per day by the end of June
2012. At $80 per barrel,
this will translate to about $29.2
million in gross revenues annually from our Texas oil production alone."
CEO of Treaty Energy Corporation, Andrew
Reid, stated, "I am pleased with the current production in
Texas and noted that all re-works
are being done from the bottom of the well to the top, including
pressure testing of the tubing prior to re-installation in the
wells. This type of work-over may initially cost more and
require more time, however Treaty expects to avoid the higher
operational costs that can be associated with stripper wells when
using the traditional band-aid methods. Treaty's wells, once
worked-over, will require much less maintenance compared to the
average stripper wells."
Finally, Mr. Reid said, "We plan to release an update in the
week of September 12th on the
progress in Belize regarding the
first well that we are expecting to drill later this month."
About Treaty Energy Corporation
Treaty is engaged in the acquisition, development and production
of oil and natural gas. Treaty acquires and develops oil and
gas leases which have "proven but undeveloped reserves" at the time
of acquisition. These properties are not strategic to large
exploration-oriented oil and gas companies. This strategy
allows Treaty to develop and produce oil and natural gas with
tremendously decreased risk, cost and time involved in traditional
exploration. For more information go to:
www.treatyenergy.com
Forward-Looking Statements:
Statements herein express management's beliefs and expectations
regarding future performance and are forward-looking and involve
risks and uncertainties, including, but not limited to, raising
working capital and securing other financing; responding to
competition and rapidly changing technology; and other risks.
These risks are detailed in the Company's filings with the
Securities and Exchange Commission, including Forms 10-KSB, 10-QSB
and 8-K. Actual results may differ materially from such
forward-looking statements.
Contact:
Osprey Partners
Tel: 732-292-0982
Fax: 732-528-9065
investors@treatyenergy.com
SOURCE Treaty Energy Corporation