NEW ORLEANS, Oct 4, 2011 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO), a growth-oriented energy company in the
oil and gas industry, today reported on its operations in
Texas and its Treaty Belize Energy
Ltd Oil & Gas project in Belize, Central
America.
Andrew V. Reid, CEO of Treaty
Energy Corporation, reported, "The rework and upgrade program on
our Texas operations is proving to
be effective. Total rework of some leases and partial rework
of certain other leases has been performed on 10 of the 13 leases
owned by Treaty."
Stephen L. York, President and
COO of Treaty, the person directing the Texas operations, stated, "To put everything
in perspective, Treaty Energy is evolving into a genuine oil
company. To date every lease we have in Texas has been evaluated and run wide open
until the problem areas could be identified. Over the
previous 60 days our rework program has forged ahead reworking,
revamping, and upgrading systems and equipment in a proficient and
competent approach that will allow consistent, stable production on
a monthly basis."
Mr. York added, "These early evaluations and the corrections of
detected problems needed to be addressed in order to proceed
forward and substantially improve and increase production rates.
The balance of the rework will be completed in October.
In addition, Treaty currently has two workover Rigs on site
that are completing this initial phase of growing our Texas production. Our current production
from 35 wells is about 50 BOPD, with production expected to be in
excess of 60 BOPD by the end of October."
"Finally, on the rework program and production numbers," Mr.
York stated, "all of this has been accomplished during the worst
drought and prolonged period of record high temperatures that
Texas has seen in many years.
Stress on the equipment, electrical systems, flow lines and
other operational items was exceedingly high which caused a two
step forward one step back scenario, which definitely hindered the
rework program and greatly effected the efficiency in achieving
additional production."
With the leases upgraded and all workovers done by the end of
this month, Treaty will initiate the drilling phase of the program
and continue toward achieving the stated production goal of 1000
BOPD by the end of June 2012.
Treaty indicated that its Texas
production could be increased beyond the goals stated earlier by
way of additional lease acquisitions. Currently Treaty has
two leases under purchase contracts, and is paying for these
acquisitions on a monthly basis, and when completed, these two
added leases will add immediate production out of 2 wells in
addition to providing 12 new drilling locations (PUDs) that Treaty
is looking forward to exploring as soon as the acquisition is
completed. These 12 new wells could add 100–120 BOPD to the
Texas production prior to the end
of this year.
As to the Belize project, Mr.
Reid stated, "While we had anticipated the drilling of Well #1 in
Belize to commence last week, we
are moving forward on a steady basis. Comments below from a
report by Steve York, Treaty's
President and COO, and Bill Harden,
Treaty's Drilling Superintendent, will clarify the progress being
made in Belize."
As outlined in Mr. York's report, "After evaluation of the drill
site of Well #1 and surrounding terrain several changes have been
made. The well pad had to be compacted and large timbers were
laid in place to withstand the weight of the Rig and equipment
during drilling operations. Rainfall needed to be taken into
consideration during the drilling phase and appropriate steps are
being taken to prepare for water soak of the drilling pad.
"The rainfall situation also changes the approach which must be
taken with our equipment. The initial plan was to use our
standard skid-mounted pipe handling racks, skidded mud pump,
skidded power plant and skidded 'dog house' that we customarily use
in Texas oilfields to drag from
location to location. We believe the rainfall in Belize could make this impractical and
therefore all skidded equipment is being mounted on trailers.
A 40 ft. double drop deck trailer will now carry the mud pump
and engines, a 53 ft. single drop trailer has been converted to
haul the drill pipe, and a white semi tractor has been purchased to
haul the trailers from location to location.
"Equipment has been purchased, fabricated or revamped over the
last two weeks to make it useable in Belize. Even though drilling regulations
allow for lined earthen pits, a set of self contained steel pits
(an above ground mud system) has been purchased to expedite the
drilling process and also show Treaty's concern for the environment
at the drilling sites. The remaining essential equipment
should be completed this week and shipped to Belize via trucks that are bonded and
regularly make the trip through the countries surrounding
Belize. Treaty expects to
use 4-6 trucks for these shipments. Truck time is normally
3-4 days from Abilene, Texas to
Placencia, Belize.
"In addition to all the previously explained issues is the lack
of available supplies, equipment and services relating to the needs
of an oil exploration operation in Belize. Treaty has determined that all
supplies, equipment and services should be procured and shipped
from the United States. The
risk of not making our Belize
drilling operation totally self reliant could be detrimental to the
timeliness of the drilling program.
"So as to assure complete control of our drilling operations in
Belize, Treaty has purchased every
item necessary to drill the planned wells from start to finish.
These supplies include drilling mud, fluids, casing and
tubing, cement, well heads, blowout preventer, pump jacks, downhole
pumps, perforation guns, explosive charges, and any other items
relevant and necessary to drill and complete the wells."
Bill Harden and his drilling crew
will fly to Belize to commence
drilling of Well #1 during the week of October 10th. Once the crew has arrived and
drilling commences a daily update will be posted on the Treaty
Energy Website, Facebook and Twitter pages.
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
osprey57@optonline.net
SOURCE Treaty Energy Corporation