NEW ORLEANS, Sept. 30, 2013 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a
growth-oriented international energy company, today announced that
the Company has commenced full drilling operations on the Stockton
Lease in Tuscola, Texas.
(Logo: http://photos.prnewswire.com/prnh/20130716/MM48083LOGO
)
On September 27, 2013, at around
6:10pm CDT, the drilling rig spudded
in on the Stockton #2 well. The Company is employing a local
drilling contractor to perform the operation. The Stockton #2 well
will be drilled to the Gardner Limestone pay-zone located at an
approximate depth of 4800ft. The well is considered an off-set well
to the Company's successful Mitchell #4 well.
Currently, the Stockton #2 drill is at approximately 2000ft. and
is drilling 24 hours a day. 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.
After completion of the Stockton #2 well, the drilling rig will
immediately move over to the Stockton #3 site to begin drilling
operations there. The target pay-zone for the Stockton #3 is also
the Gardner Limestone and is expected to have a total depth of
4800ft.
Drilling on the Stockton lease comes at an opportune time with
the price of WTI Crude nearing all-time highs at over $100.00 a barrel. Initial production surges will
guarantee larger profits for the Company due to this unexpected
market development.
The Stockton lease project was entirely self-funded and the
Company sought no additional partners on the project. As a result,
the Company maintains its full 75% net revenue interest (NRI) and a
100% working interest (W/I) on the well.
The Stockton lease project is part of the Company's business
strategy to develop an oil field in Tuscola, Texas. To date, the Company has
drilled two new wells and worked over one existing well and is
solidifying plans to work over and re-perforate the Stockton #1
well into the Gardner Limestone pay-zone to match the newly drilled
Mitchell and Stockton wells.
Andrew Reid, Chief Executive
Officer of Treaty Energy, stated, "The Company is thrilled to begin
drilling on the Stockton lease after three months of planning and
development. By opting to self-fund this well, the Company is
expected to dramatically increase revenues in a very short period
of time especially with oil at a high price. If the drilling is
successful, the Company may choose to further develop and drill in
the Tuscola area."
Bruce Gwyn, Chief Operating
Officer of Treaty Energy, stated, "The Company is making tremendous
progress in increasing oil and gas production. Management earlier
this year stated that the primary goal of the Company was to revamp
Texas operations and increase
production. Revenue from production is at an all-time high in
Company history and is only going to get higher. The Company has
begun the permitting process to drill two additional wells in the
area and will continue to support the Tuscola drilling program, so long as the
Company continues to receive positive results in the area."
Shareholders can continue to monitor the Stockton project as it
develops through the Company's social media channels, newsletter or
website.
History of the Stockton Lease Project
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 was 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.
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