Treaty Energy Corporation Signs $3,500,000 Drilling Contract
Wholly Owned Drilling Subsidiary Will Drill and Complete Approximately 500 Wells in Louisiana Starting November 6, 2013
NEW ORLEANS, LA – October 29, 2013 -- Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com ), a growth-oriented international energy company, today announced it has signed a $3,500,000 drilling contract to drill 500 shallow wells in Louisiana through its drilling services subsidiary, Treaty Energy Drilling, LLC.
Treaty Energy Drilling, a wholly owned subsidiary of Treaty Energy Corporation, has secured and signed a $3,500,000 500 well drilling contract in Louisiana. All of the wells in the contract are considered shallow vertical drills and will be approximately 475ft. in depth. Drilling is expected to begin on November 6, 2013 and at least thirty wells are expected to be completed by January 31, 2014.
Treaty Energy Drilling plans to use its Failing 1500 CF Mounted Drilling rig to drill the wells. The drilling rig is currently being retooled and upgraded before starting the job to ensure a quick drilling time.
Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation, stated, “When the Company initially started Treaty Energy Drilling, the Company believed that it would be more cost effective to drill its own wells. However looking at financials earlier this year, the Company decided that the best course of action would be to use the experience of Treaty Energy Drilling to drill wells under contract to third parties to diversify the revenue stream and bring in additional capital to the Company.”
Mr. Reid continued, “This type of contract is exactly the reason that the Company shifted Treaty Energy Drilling to being a third party contractor. We will use the profits from this operation to fund our operations domestically and internationally, providing a secondary revenue stream for future Company operations. The Company is excited to be drilling these wells and expanding our operations to Louisiana.”
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