Treaty Energy Corporation Newsletter for the Week of January 27, 2014
This newsletter is for the week of January 27, 2014 and contains current information on Company operations as of January 24, 2014. Information contained in this newsletter may be outdated at the time of release. Prior issues of the newsletter may be found on the Company’s website located at http://www.treatyenergy.com/investors/news .
Communication Delays (Treaty Energy Corporation):
On January 27, 2014, Governor Bobby Jindal of Louisiana declared a State of Emergency due to Winter Storm Leon . In response, Treaty Energy Corporation has advised employees to exercise caution and use their best judgment when deciding when to travel on the roads over the next 72 hours. Some employees have been instructed to work remotely. As such, please be aware that there may be a 72 hour delay in communications. Once the State of Emergency has been lifted, the Company will work to respond to any and all inquiries to our offices that were submitted during this time.
Entergy of New Orleans has also stated that power to certain areas in New Orleans may not be restored for 3-5 days depending on weather conditions. With weather conditions expecting to worsen overnight and extend into early January 29, 2014 there is a chance that full operations may not be restored until February 3, 2014. The Company will inform both employees and shareholders on the status of headquarters operations when deemed appropriate.
While normal winter conditions are much worse in other parts of the country, Louisiana has a limited infrastructure to deal with large de-icing operations. Travel conditions are considered unsafe. The Company will follow the recommendations of local authorities when determining proper safety protocols. Treaty Energy Corporation is committed to safety and protecting the lives of its employees.
Corporate Filings (Treaty Energy Corporation):
Treaty Energy Corporation has completed and released the 2013 10-Q for the third quarter of 2013. This document is available for download on Treaty Energy Corporation’s SEC-Filings page: http://www.treatyenergy.com/investors/SEC-Filings .
Highlights from these financials include:
- A positive net income of $27,321.
- Revenues are up 34% for the year as of September 30, 2013 compared to revenues in the same time period in 2012.
- Total expenses for the third quarter were down 11.51% despite increased drilling activities.
- General and Administrative Costs were down 90.7% compared to 2012’s third quarter.
The Company believes that these are positive indicators for future success and believes that the fourth quarter will show significant improvements over the 2012 10-K financial figures. The Company made a promise in early 2013 to improve operations and overall Company performance. These key indicators in the third quarter show the Company’s commitment to this promise.
As noted in the Company’s six month prospectus , the Company is working with its auditors to speed up auditing times and restore investor confidence. Understanding that compliance is essential to shareholders, the Company spent a majority of last week (Jan 20-Jan 24, 2014) ensuring that compliance was met and the third quarter filings were released to uphold those commitments to investors.
A few investors have questioned the language in the financials regarding the purchaser of the Mitchell lease. The purchaser was referred to as “an investor,” however as reported in Treaty Energy Corporation’s Newsletter on December 9, 2013 the purchaser was TNC Energy, Treaty Energy’s drilling partner on the Mitchell lease, through the right of first refusal. The statement in the third quarter financials was written before the December 9 th announcement which may have prompted some confusion to investors.
As of January 22, 2014, Treaty Energy Corporation is now re-listed on the OTC as OTCQB. Being listed on the OTCQB signifies that Treaty Energy Corporation is fully reporting and completely compliant with all SEC filings. Treaty Energy’s next filing deadline is March 31, 2014, when the 2013 10-K is due. The 10-K will not only contain annual financials, but will also include any and all transactions in the fourth quarter. As noted in the six month prospectus, shareholder inquiries regarding transactions and sales during the three months ending December 31, 2014 will be recorded in those financial documents.
Motion for Damages (Treaty Energy Corporation):
After filing the Motion for Damages in the matter of 2:13-BK-11238 on January 17, 2014, several investors have contacted the Company’s investor relations department informing them that some of the petitioners have begun to send harassing or threatening messages to them. The Company has also noticed an uptick in activity from several public accounts associated with the petitioners. If you have received harassing messages from someone associated with the involuntary petition filed against the Company, please forward those messages on to investors@treatyenergy.com so that we may forward them to our attorneys handling the matter.
West Texas (C&C Petroleum Management, LLC):
The Company continues to move forward in acquiring financing on the Kubacak Lease so that it may begin the project within the first quarter of 2014 as announced in the six month prospectus.
Operations on the Mitchell and Stockton leases are still on-going and operations have not changed from the previous week. When a larger update is deemed necessary on these projects, the Company will make an announcement. Until then, investors should assume normal operating conditions. The company plans to begin work on the Stockton #3 within the next two weeks and will inform investors when this operation begins.
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
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.
