NEW ORLEANS, May 9, 2013 /PRNewswire/ -- Treaty Energy
Corporation (OTC: TECO) (www.treatyenergy.com), a growth-oriented
international energy company, today announced a binding Letter of
Intent (LOI) with U.S. Fuels, Inc. of Breckenridge, Texas.
The eventual transaction to result from this LOI is an
"Exploration Agreement" which is to be finalized before
July 31, 2013, relating to five (5)
West Texas leases covering
approximately 1,830 acres. To view details on the binding
Letter of Intent, please visit the following link:
http://www.treatyenergy.com/sites/default/files/TECO_US_FUELS_LOI.pdf.
Treaty Energy is currently drilling two wells on the 40 acre
Mitchell Lease in Taylor County, Texas which is included in this
agreement. The other four Texas leases are as follows:
- Knott Lease – 40 Acres in
Taylor County
- Stroebel Lease – 700 Acres in
Eastland County
- Standard Lease – 400 Acres in Taylor
County
- Bridges Lease – 650 Acres in Stephens
County
Andrew V. Reid, Chairman and CEO
of Treaty Energy Corporation, stated, "Treaty will pursue drilling
and rework opportunities that offer greater initial production and
better ROI in the future, rather than reworking and operating
stripper wells. Going forward, Treaty intends to concentrate on
prime leases with future wells, similar to the two Mitchell wells
that are currently being drilled and completed."
Mr. Reid further stated, "Treaty has funding in place to drill a
number of additional wells without needing to seek additional
funding for new drilling projects. Management is confident
that as production comes online from these initial new wells,
drilling of additional wells will occur at a reasonable pace and
will likely be funded through expected positive cash flows."
Since mid-Q1 2013, Treaty Energy has evaluated their existing
lease inventory and has initiated plans to sell selected
non-productive or underperforming leases to individuals or
companies that are focused on small stripper wells and who are
dedicated to servicing this type of lease.
With the execution of this agreement, Treaty Energy will have
the capability to drill dozens of new wells in West Texas on these new leases. The new
wells will be state-of-the-art in nature and hold much more promise
and longevity for Treaty Energy and its shareholders. Implementing
this new strategy will help Treaty to achieve the goals set by
management.
Mr. Reid concluded with, "Treaty no longer intends to operate
its own wells. Management's plan is to use proven operators
with years of experience to oversee and operate Treaty's well
inventory. This change in operating strategy will allow
Treaty to concentrate on finding additional opportunities to drill
and grow oil production, priorities which management believes will
translate into rapid growth in assets, production, cash flow and
the trading value of Treaty shares."
About Treaty Energy Corporation
Treaty is an
international energy company 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, which allows Treaty to develop and produce oil and
natural gas with tremendously decreased risk, cost and time
compared to traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTC, 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.
Contact:
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-754-6927
Fax: 504-324-0844
SOURCE Treaty Energy Corporation