NEW ORLEANS, Sept. 19, 2013 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a
growth-oriented international energy company, today announced that
the Company has signed contracts to begin drilling two self-funded
and already permitted wells in Tuscola,
Texas. Drilling is expected to begin as early as
Saturday, September 21, 2013 but may
begin as late as Wednesday, September 25,
2013.
(Logo:
http://photos.prnewswire.com/prnh/20130716/MM48083LOGO)
On June 28, 2013, Treaty Energy
acquired a working interest on the Stockton lease from U.S. Fuels,
Inc. of Breckenridge, Texas. This
working interest included a 75% net revenue interest (NRI) and a
100% working interest (W/I). The remaining 25% NRI is dedicated to
existing overriding royalty interests (ORRI).
On July 17, 2013, the Company
announced it had completed survey work and were solidifying plans
to drill two offset wells from the Mitchell lease on the Stockton
lease. Requests for drilling permits were filed approximately
two weeks after survey work was completed. The Company received
permitted approval to drill the two wells on August 6, 2013 from the Texas Railroad Commission
(TRRC).
The Company finalized and signed contracts on September 11, 2013 to begin drilling the two
planned wells on the Stockton lease. As previously announced, the
Company has sought no partners on the project and will be
completely self-funded. The Company's self-funding grants 100% of
the 75% NRI as revenue for the Company.
Due to proximity and same field geology, initial production
numbers and estimated production rates are expected to be similar
to the Mitchell #4 well, which received an initial production rate
of 61 barrels of oil per day (BOPD) and an announced production
rate of 45-50 BOPD. Both wells will be drilled to an approximate
depth of 4800ft and will be drilled sequentially. Based on the
Mitchell's production rates, the Stockton wells combined are
expected to bring in approximately $205,000 in revenue within thirty days of
completion.
As part of the Stockton lease development, the Company recently
purchased the Stockton #1 well. The strategic Stockton #1 purchase
reduced the capital needed to begin work on the project by
supplying an existing oil and gas infrastructure, namely the tank
batteries and water separators. Both of these were recently
repaired by the Company in order to remove the Mitchell #1 from
severance.
The Company plans to complete site preparations by the end of
this week and will begin drilling shortly thereafter. The exact
start date is dependent on the completion of another scheduled
drilling project and completion of the site preparations. Well
operations and drilling oversight on the Stockton lease will be
handled by David Jakobot of U.S. Fuels, Inc.
Andrew Reid, Chief Executive
Officer of Treaty Energy, stated, "The Company is excited to begin
the Stockton project and shareholders should be excited as well.
The Stockton project will continue to move the Company closer to
cash flow positive status and will provide us with more capital to
start new projects and revamp existing operations. Initial revenue
from the Stockton wells will be used to return to the Madeley 'F',
Lakeshore and Hill leases in East
Texas."
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-754-6926
Fax: 504-324-0844
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an
international energy company, 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.
Treaty Energy Corporation (TECO) trades on the OTCQB, the
marketplace for companies that are current in their SEC reporting
requirements. Investors can find Real-Time quotes and market
information for Treaty Energy at
http://www.otcmarkets.com/stock/TECO/quote
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.
SOURCE Treaty Energy Corporation