NEW ORLEANS, Oct. 11, 2013 /PRNewswire/ -- Treaty Energy
Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a
growth-oriented international energy company, today announced that
the Company has cased and cemented the Stockton #2 well in
Tuscola, Texas with positive
initial results.
(Logo: http://photos.prnewswire.com/prnh/20130716/MM48083LOGO
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The Company began drilling the Stockton #2 well on September 27, 2013. At roughly 8:20AM on October 08,
2013 the drilling operation reached a total depth of
4,783ft. after visible signs of hydrocarbons in the mud pits.
A top-to-bottom wire line log was conducted which, as
anticipated, confirmed two pay zones in the well located at
4,075ft. and 4,490ft. with the pay zone sizes being 25ft. and 8ft.,
respectively. The Stockton #2 well shares a similar pay zone at
4,490ft. to the Company's successful Mitchell #4 well, which is
located approximately 1,000ft. away from this new well site. The
multiple confirmed pay zones will serve to extend the longevity of
the well. Perforation will occur in the Gardner Limestone at
4,490ft. based on the strength of the reserve at that depth.
The Stockton #2 is expected to perform equally or slightly
better than the Mitchell #4 well, which received an initial
production rate of 61 barrels of oil per day (BOPD) and received a
resting production rate of 45-50 BOPD during the well's first two
months of production.
After a thorough review of the logs and samples, the Company's
drilling contractor began to run casing. Cementing was completed
early on October 10, 2013 and is
expected to take approximately 72 hours to cure. A crew will arrive
early next week to perforate and complete the well. Per Company
protocol, the Company will wait 1-2 weeks for production levels to
stabilize before announcing production rates.
Mitchell #5 and Stockton #3
Based on data gathered during the wire line logging of the
Stockton #2 well, the Company has made the decision to accelerate
its plans to drill another well on the Mitchell lease. The new well
will be classified as Mitchell #5. The Company currently has net
revenue interests (NRI) on three wells on the lease. Treaty Energy
Corporation will maintain a 75% NRI and 100% working interest (W/I)
on the Mitchell #5 well.
After completion of the wire line logging on the Stockton #2,
the Company filed an accelerated permit application for the
Mitchell #5 well on October 9, 2013.
The permit can be viewed at Treaty Energy Corporation's website at:
http://www.treatyenergy.com/sites/default/files/Mitchell5.pdf.
The Company has decided to drill the Mitchell #5 well before
drilling the Stockton #3. The Company would like to evaluate the
results of the Stockton #2 before proceeding with the Stockton #3.
The primary reasoning behind this decision is that the Stockton #3
extends outfield, while the Mitchell #5 remains in field, where
more production data exists.
The rig that is currently sitting on the Stockton #2 well will
be used to drill the Mitchell #5. As soon as the drilling permits
are approved on the Mitchell #5, the rig will move into position
and immediately begin drilling, minimizing potential delays.
Drilling on the Mitchell #5 is expected to begin next week and take
approximately two weeks to complete. The drilling permit will
remain active on the Stockton #3.
Mitchell #1
The Company has officially determined that the fracture job
completed on the Mitchell #1 yielded an initial production rate of
20 BOPD. The established production rate is now between 5-10 BOPD.
This work over is considered a significant success based on the
return on investment (ROI) that the Company will receive.
Future Drilling Plans for the Tuscola Development
Effective immediately, the Company plans to have two active
drilling permits set and ready to go at any given time. At the time
of this release, the current active permits are the Stockton #3 and
the Mitchell #5. Based on the success of the Mitchell wells and the
Stockton #2, the Company expects to drill five new wells by the end
of the year in the Tuscola region
(excluding the Mitchell #3 and #4). This will bring the number of
newly drilled wells to seven by the end of the 2013. The Company is
expected, and on track, to meet its conservative 100 BOPD target by
the end of the year.
Andrew Reid, Chief Executive
Officer of Treaty Energy, stated, "The amount of success that the
Company has had in the Tuscola,
Texas region is tremendous. The Company is confident in
these developments and plans to accelerate drilling operations in
the region. We believed that these successes and planned future
operations will serve to bring the Company to its full potential.
Shareholders should be excited with developments in the region and
can look forward to further drilling announcements in the near
future."
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