Treaty Energy Announces Update on Town Oil Acquisition
February 28 2011 - 12:00PM
Marketwired
Treaty Energy Corporation (OTCBB: TECO) today announced it has
passed the expected February 21st closing date for the Town Oil
Company assets purchase due to issues beyond its control.
Treaty's lender is located in an area that has been affected by
continued severe weather which has caused the lender to ask for a
closing date of April 1, 2011.
The reasons given by the lender are lack of time to finish the
title searches on the 57 leases and time needed to finalize the
loan documents based on the results of the title searches.
Treaty has asked for additional time from Town Oil and has been
told to continue toward the loan closing and they would hold off on
taking possession of the 60 million shares of Treaty Energy stock
held in escrow as liquidated damages should the loan not close.
Just to be clear, these shares are held in an escrow account in
Kansas and can be converted from the listed owner of the shares to
Town Oil at their discretion should the loan not close.
Treaty's lender will work diligently to close this acquisition
as soon as possible.
Treaty's CEO Andrew Reid stated, "Treaty Energy has enjoyed a
very good relationship with Town Oil management and appreciates
their willingness to continue to the closing of this
acquisition."
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