NEW ORLEANS, Nov. 11, 2014 /PRNewswire/ -- TREATY Energy
Corporation (OTCQB: TECO), a growth-oriented energy company in the
oil and gas industry, today reported that Chris D. Tesarski, its Executive Chairman and
CEO, is pleased to distribute via this release a "Letter of
Progress to Shareholders" regarding the company's Belize project and the previously announced
"Colorado Acquisition" and other pertinent developments.
Letter of Progress to Shareholders:
The Board of Directors and Management of TREATY Energy
Corporation (TECO) wish to make the following announcement with
regard to the News Release of August 29,
2014, which stated the following:
"September 1, 2014 marks the
beginning of a new chapter in the history of TREATY
Energy"
Indeed it has. We wish to inform our shareholders of
material changes to the company which will take place over the
coming months which will allow TREATY to embark on a definitive and
decisive plan forward that will in fact transform TREATY into an
energy company of significance and credibility focused squarely on
the tremendous opportunities that lie ahead of us, while
decisively, vigorously and systematically dealing with certain
legacy issues which have affected and continue to affect the
company's operations.
With respect to the company's operations in Belize:
We wish to inform our shareholders that the Board of Directors
has just completed an exhaustive and extensive tour of Belize and all of the company's activity in
that country. We believe that it is time for the shareholders
to know the truth about TREATY's endeavors there.
Firstly, Belize is a land of
incredible diversity as well as opportunity in which TREATY failed
to execute on many fronts. In January
2014 TREATY management performed, without reporting to
shareholders, the abandonment of Belize and its opportunity platform when it
assigned all of its assets to the Hackmeyer Real Estate Group in a
"blanket security agreement" as collateral against funds which the
Hackmeyer Group had loaned to TREATY for ironically, development in
Belize, as well as some of the
company's endeavors in Texas.
We believe this was misguided. Clearly at that time TREATY
was not able to execute on extensive opportunities available to the
company to provide shareholders the ultimate return on investment
that was and is indeed possible.
We are very concerned about the information leaked via "posts"
on PUBLIC Bulletin Board systems;
These posts contained insider information about management
involvement in Belize. They
contained false information about former consultants being involved
in activities on said trip. Misleading statements regarding
TREATY's ownership and title to said interests and deliberate
misinformation about contractual discussions and outcomes of said
discussions.
We wish to inform all of our shareholders that regardless of how
the fact that information regarding a trip to Belize had occurred and would have managed to
slip out, most of the comments and accusations in these 'posts' are
patently false. We wish to reassure our shareholders that a
formal investigation has been launched. The timing of such
posts on Friday, right before, by common knowledge, a major Press
Release was to occur is suspect to say the least. TREATY is
changing and regardless of the criticisms leveled at the company in
the past, often as we will point out, for valid reasons, future
events will expose the true motivation behind these attacks against
the company and our stock.
Let us now lay out the facts:
- TREATY owes a debt of gratitude to our colleagues in
Belize for ENSURING the safe
storage and periodic maintenance of the equipment in Belize thereby allowing TREATY the opportunity
to realize value on said assets. We will release pictures of the
assets on our website and link to the FACEBOOK page;
- The Hackmeyer Group was fully aware of our trip to Belize and in fact fully sanctioned it
occurring. The Princess Group in Belize was fully apprised of all details
surrounding said agreement with the Hackmeyer Group and an
agreement in principle was struck between all parties which is to
be ratified subject to review by each party's respective legal
counsel within 14 days;
- TREATY has received an EXPRESSION OF INTEREST with regard to
sale of said equipment to a company with opportunities in the
region;
- The Hackmeyer Group has agreed and TREATY has agreed to ensure
that all parties in Belize are
satisfied that they have been fairly compensated for all debts
outstanding in the country from the sale of any of the drilling
assets which remain;
- These debts include outstanding funds owing to various
governmental agencies, which have a vested interest in ensuring
that FULL jurisdictional assessment has been applied to TREATY and
its ownership of said assets. We are thankful that even though
unfortunately, there are outstanding issues relating to the
relationship with the government, such issues will now be resolved
subsequent to the repayment of all debts, BUT that TITLE AND
OWNERSHIP to said assets is not one of those issues. TREATY is
fully responsible for any and all issues it "left behind" in Belize as
there is no doubt in the minds of officials that the company is in
fact the sole owner of the assets after much due diligence;
- Our shareholders should rest assured that any contrary claims
as have been shown above are able, by law, to be brought to bear
within our Civil Court system. The company will vigorously defend
our position as to our claims of ownership as to ALL documentation
WE HAVE IN OUR POSSESSION that we have willingly and without
hesitation provided and will continue to provide if requested. The
leadership of TREATY has no patience for allegations with respect
to our claim of ownership of said assets, and also no patience for
the actions of any individuals who may have given rise to this
unfortunate distraction for our shareholders. We trust that our
position is clear and do not wish for any litigation to occur, but
understand that we stand ready to defend the company if such an
event occurs and will ensure that in all matters regarding this
issue, justice is served;
- Upon sale of the assets, the Hackmeyer Group has agreed to
remove any encumbrance to the sale of said assets by allowing the
lien to be removed and proceeds to flow into escrow and then be
distributed satisfactorily to all parties in Belize and allow funds to be used as a deposit
on TREATY's "Colorado Acquisition" which will be further described
below;
- The remaining "field service" equipment will form an
opportunity platform in Central
America for CORESOURCE STRATEGIES, an affiliated oilfield
service company to be more fully described in the next 30
days.
What does the trip to Belize
mean for TREATY and our shareholders?
- TREATY IS ABLE to convert (sell) the equipment, that was left
in a less than favorable environment for such equipment, into
CASH;
- With this cash, TREATY IS ABLE to retire MATERIALLY SIGNIFICANT
debt with two of the company's largest creditors;
- With the retirement of the debt, TREATY IS ABLE to secure money
required for the planned Colorado
acquisition and operational plan for the Company.
With respect to the announced transaction in Colorado:
- TREATY is intending to close on this transaction by
DECEMBER 15, 2014. The metrics for
the transaction have substantially changed;
- The average daily production of the wells in the acquisition
package is approximately 200 BOEPD;
- Net revenues are expected to be approximately $150-200,000 per month depending on the commodity
pricing over the next 60 days, while new wells are being brought on
stream. We remain confident we will reach the high end of projected
revenue early in Q1-2015 and grow from there as 2015 drilling
continues;
- The effective date at closing has been negotiated to
June 1, 2014, and thus TREATY will
receive the benefit of 5 months of cashflow that will be deducted
from the purchase price of $5.78MM;
- In addition TREATY has entered into a Letter of Intent (LOI)
with a separate but affiliated vendor to acquire a "royalty
package" available to the company in this area which will
significantly bolster the company's position in this exciting
Colorado energy play;
- This is all part of a significant and aggressive financing
campaign which has been able to attract to bring debt and equity
into TREATY that will allow us to move beyond the hostilities which
have been leveled against the company as highlighted earlier;
- TREATY has secured its first part of the financing which will
come into the company on or before November
17, 2014
- As part of its commitment to its financing consortium to
decisively alter the company's business activities TREATY is
pleased to present to its shareholders the following material
information as to the direction of the company in the coming
months.
With respect to additional production:
- There has been significant discussion with respect to "getting
production" on stream. While admirable it has become evident to
TREATY and its financial advisors that the legacy left to current
management has made it difficult to handle those "legacy issues"
with cashflow generated from production under 150-200 BOPD,
especially in light of the recent downturn in commodity
prices;
- Today's capital markets require a commitment to growth through
a mix of acquisition of strategic, conservative and CONSISTENT
cashflow generating assets and lower risk infill and development
drilling. The Colorado acquisition fits this model perfectly
in light of recent operational strategy by the major producers who
form our partner base;
- In addition THE PLAN laid out below has given our financing
consortium confidence that if we proceed as outlined there will be
immediate cashflow available to optimize our "existing" production
base. This will generate the "rent money" TREATY needs every
month to begin to gain credibility back as an organization, while
building an opportunity platform for significant debt retirement
and development capital from our larger cashflow to be generated
from Colorado and some of the
other acquisitions we are/will be pursuing as outlined below.
With respect to restructuring and renaming of the
company:
TREATY, under the new management team, announces its "2,015
in 2015 Plan", meaning that we expect to utilize a series of
strategic transactions to expand our production capacity to 2,015
barrels-equivalent per day and will diligently seek to accomplish
this goal in the year 2015.
The methodology for achieving this goal began with the
change-out of all previous officers and directors, all of whom have
been replaced by action of the Board of Directors, and will be
formally ratified by the company's shareholders at a Special
Shareholder Meeting to be held in New
Orleans, Louisiana in as soon as practical in
2015.
The proposed Board of Directors of the company will be composed
of people with expertise in the areas most needed by TREATY: oil
and gas operations, the marketing of energy goods and services,
regulatory compliance and achievements in the business of both
production and oilfield services. "TECO" will remain the
ticker symbol, but the name will change to Trimerica Energy
Corporation, recognizing that the company's horizons are
expected to expand to include significant assets in Canada, the United
States and Central America. At this very time, the
company is in the process of executing significant agreements with
entities in Canada, the United States and Central America which are anticipated to
elevate production capacity and put oil field assets to work for
the company, as previously reported to shareholders in the press
release of August 29, 2014.
By the date of the Special Shareholder Meeting, these agreements
will have been executed and the shareholders will be asked to
ratify the Directors to be presented by "proxy" so that the Board
of Directors can thereupon select and ratify the officers who will
enthusiastically advance the "2,105 in 2015 Plan".
Additionally, a newly-created Oversight/Advisory Committee with
independent members will be ratified by the Board to advise the
Board on plans, transactions and matters involving interrelated
parties as described above as well as major undertakings of the
company. The initial Oversight/Advisory Committee will be
chaired by Henry L. Klein, an
attorney experienced in securities litigation, John Bushnell, a commercial real estate
professional with over 30 years experience in mergers and
acquisitions, selected by the company's largest group of
shareholders in Salt Lake City,
Utah, and Carl McCutcheon, a
well-lettered Harvard business graduate
with over $9 billion in business
transactions to his credit and impressive expertise in the oilfield
service technology, exploration and production, and consultation
acumen.
In due course it is the goal of the company's new management
team to increase production and services capabilities to a point
which will make matriculation to the AMEX or the NASDAQ exchange a
practical reality.
- In conjunction with the "2,015 in 2015 Plan", and the closing
of its first round of significant financing, TREATY intends to
present a definitive plan for the new capital structure of the
Corporation by December 1, 2014,
which will help ensure that TREATY has the ability to raise equity
through the issuance of its common stock without raising its
authorized shares;
- In light of the financing described earlier, TREATY will now
proceed to not only get its filing compliant, but outsource ALL of
its monthly accounting starting in fiscal year 2015 to a respected
accounting firm to ensure that the compliance issues of the past
are a distant memory. We will introduce to our shareholders a
qualified CFO who is prepared to join the TECO team in January 2015 subsequent to the outstanding audits
being completed;
- The company is also prepared to issue a series of PREFERRED
SHARES to its current shareholders to be used to further its plan.
We will utilize the company's email lists, website and social
media presence to present the details to our shareholders by
December 1, 2014.
We are striving to give you your company back. We will
continue to show an unwavering commitment to that process. We
regret that negativity is often pervasive, but we will not let that
dissuade us from the path outlined herein and look forward to the
day when we will see TECO rise as a credible, viable and
financially sound energy producer.
Contact
TREATY Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
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 OTC.
Investors can find Real-Time quotes and market information
for TREATY 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.
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SOURCE TREATY Energy Corporation