NEW ORLEANS, Jan. 30, 2012 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO) (www.treatyenergy.com), a
growth-oriented international energy company, today reported
drilling success on its first oil well, SAN JUAN #2, in Belize, Central
America.
The SAN JUAN #2 well is near
Independence Village, Belize, located adjacent to the Port of Big
Creek in the Stann Creek District.
Final phase of drilling this well commenced on January 24, 2012, after review and compliance
with all government regulations, requirements and inspections by
Belizean officials and permission granted.
The initial casing (8 5/8 inch) was set and cemented in place
using upgraded cement that was requested (H Grade). Upon
completion of the cementing process it was allowed to cure for more
than 24 hours.
Once the cement was properly cured and inspected by government
officials permission was then given to drill to depth on the
well.
All information compiled by Treaty engineers, geologists and its
own accomplished oil industry veterans (Steve York, Bill
Harden) indicated that we would start to encounter shows of
hydrocarbons around 1100 ft.
At 1235 ft hydrocarbons were detected in the form of a gas
register. This presence of C1-C4 gas readings indicated a
geo-pressurized oil bearing zone/gas driven. As drilling
continued the indicator steadily increased from the depth of 1235
ft with readings being taken at 1 ft intervals.
On site analysis of the cuttings by Advanced Geological
Services, Treaty's "Mud Logging" equipment supplier and consultant
revealed that hydrocarbons (Oil) were present in the cuttings
samples. Continued drilling showed a constant increase in
hydrocarbon presence in the formation through 1290 ft, after which
there was a steady decline. This defined the producing zone
to be 1235 ft – 1290ft.
Andrew V. Reid, Chairman and
Co-CEO of Treaty Energy Corporation, stated, "We were advised by
the drilling team to produce this first well, SAN JUAN #2, at the first pay zone based on
their professional expertise. It is our plan to drill
SAN JUAN # 1 deeper than
SAN JUAN #2 in the belief that
there may be additional pay zones present."
The cursory field examinations of the cuttings samples indicate
lime characteristics with good porosity and high saturation.
On site personnel evaluated the samples and came to the following
conclusions. The characteristics are very similar to some of
the great oil producing zones in Texas, specifically the Ellenburger Lime,
Hope Lime, Caddo Lime, Edwards Lime,
etc. The characteristics of these Lime plays are very well
documented with initial production rates up to and sometimes
exceeding 1000 BPD. These plays have produced hundreds of
millions of barrels of oil over the past century and have been the
source of many of the great Texas
success stories.
Based on analysis and results the following plans will be
implemented as we work in accordance with Belizean officials to
properly integrate and produce this well.
1) Total depth of the SAN JUAN #2 well will be 1300 ft.
2) The drill pipe will be removed from the
hole and the hole will be conditioned for completion.
3) A "four-quadrant" camera shot will be made
to provide the geologists a photo image of the pay zone in four
90-degree views.
4) The 4 1/2 inch tubing will be set and
cemented in place in the well bore.
5) Wire Line Logs will be done to supplement
the Mud Logging data.
6) The casing will be perforated in the oil
bearing zone.
7) Standard completion procedures will be
performed to bring the well on line.
Treaty is in the process of acquiring its own wire line logging
equipment. This equipment will be delivered to Belize on Treaty's newly acquired
tractor/trailer that Treaty purchased to expedite deliveries of
time sensitive items that are required for the Belize drilling projects.
Mr. Reid, commented, "Treaty's initial analysis of the 200,000
acre 'onshore' Princess Concession includes 80 anomalies showing
promise. Through early analysis we believe we have so far
identified 3 possible oil bearing fields of various sizes.
Treaty chose the current, Stann Creek Field, for our initial
exploration wells because of its easy access by our drilling team,
proximity to nearby port facilities, and it being well outside of
any protected areas. Our internal analysis indicates that the
Stann Creek Field covers an area of around 350 acres, and with
4-acre spacing we would expect to drill up to 90 wells in this oil
field. Based on our initial findings, we estimate there are
about 5,000,000-6,000,000 Barrels of recoverable oil in place in
this first finding."
Mr. Reid added, "We will commission third party engineers to
confirm our estimates in the coming months. Treaty has
200,000 acres to explore within the 'onshore' Princess Concession
and 1,400,000 acres on the Paradise Concession. We are taking
all the necessary steps to move forward with an aggressive yet
environmentally conscious drilling program on the Stann Creek Field
and will continue analyzing all our additional acreage for
additional drilling locations."
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.
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