Treaty Energy Corporation Newsletter for February 14, 2014
This newsletter is a special release for February 14, 2014 that contains information regarding the Stockton lease and C&C Petroleum Management. This information is being released due to recent increased investor concern. Information contained in this newsletter may be outdated at the time of release.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 .
C&C Petroleum Management and RRC Issues:
Over the last 48 hours, several questions regarding C&C Petroleum Managements operations have been raised. These questions have led to increased investor concern. On February 13, 2014, the Railroad Commission of Texas held a hearing to determine the validity of a “Good Faith Claim” on the McComas -A- lease near Abilene, Texas. A representative and attorney for Treaty Energy Corporation/C&C Petroleum Management attended the hearing.
Over the last several months, C&C Petroleum Management has been receiving numerous fines and plugging notices on leases whose ownership interest was transferred to Heritage Oil and Gas. However, Heritage Oil and Gas failed to transfer its P-5 Operator status onto three leases, leaving C&C Petroleum with the liabilities on the lease. To complicate matters further, Heritage Oil and Gas took out a leveraged lien on these leases as collateral leading to a very complicated ownership question that required the Railroad Commission to answer.
On Thursday morning, the Railroad Commission and the landowner confirmed that the ownership interest that Heritage Oil and Gas owned on the lease was no longer valid and third party questions regarding legal ownership were answered. Treaty Energy Corporation has entered into an agreement with the landowner to plug the wells within 120 days. In addition, the Company worked out a deal with a plugging operator to begin the operation as soon as possible. These plugging arrangements are also tied to the P.H. Barnes lease as well, which has turned into a very positive outcome for the Company. This action will officially resolve all legal problems with C&C Petroleum and the Railroad Commission of Texas once the leases are plugged.
In the process of clarifying the leases ownership interest, there were some necessary regulatory sanctions placed on the Company. These sanctions, such as the”639 operating suspension” were all expected and were unfortunately necessary in order to resolve these ownership issues. Once the P.H. Barnes lease and McComas leases are fully plugged, C&C Petroleum Management and Treaty Energy Corporation will be in full compliance of all regulatory statutes and any and all liabilities or operational issues will have been resolved. Treaty Energy has been working on this issue with legal counsel for the last three to four months and is relieved to have it confirmed by the Railroad Commission of Texas.
These issues have little to no impact on current operations in Texas. As explained several times before to investors, C&C Petroleum Management’s compliance issues do not hinder operations because of the new operating structure that Treaty Energy Corporation initiated last year which does not rely upon C&C Petroleum’s operator status.
Stockton Lease (C&C Petroleum Management):
The Stockton lease has had two major developments. For the last two months, the Company has been evaluating whether to put the Stockton #1 into full production or to re-utilize it as an injection well to boost production on the other Stockton leases. After several work overs, the production on the Stockton #1 is of a sufficient cut and quality to put the well into full production. Please see the image below to see a cut pulled off the Stockton #1 on the morning of February 14, 2014:
There is also an additional video showing the cut by clicking here .
The second major update is pertaining to the Stockton #2. Last week, crews determined that the Stockton #2 would require a completely new pump jack to maintain production. The Company plans to also acidize and frack the wells at a later date.
Contact
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
C&C Petroleum Management and RRC Issues:
Over the last 48 hours, several questions regarding C&C Petroleum Managements operations have been raised. These questions have led to increased investor concern. On February 13, 2014, the Railroad Commission of Texas held a hearing to determine the validity of a “Good Faith Claim” on the McComas -A- lease near Abilene, Texas. A representative and attorney for Treaty Energy Corporation/C&C Petroleum Management attended the hearing.
Over the last several months, C&C Petroleum Management has been receiving numerous fines and plugging notices on leases whose ownership interest was transferred to Heritage Oil and Gas. However, Heritage Oil and Gas failed to transfer its P-5 Operator status onto three leases, leaving C&C Petroleum with the liabilities on the lease. To complicate matters further, Heritage Oil and Gas took out a leveraged lien on these leases as collateral leading to a very complicated ownership question that required the Railroad Commission to answer.
On Thursday morning, the Railroad Commission and the landowner confirmed that the ownership interest that Heritage Oil and Gas owned on the lease was no longer valid and third party questions regarding legal ownership were answered. Treaty Energy Corporation has entered into an agreement with the landowner to plug the wells within 120 days. In addition, the Company worked out a deal with a plugging operator to begin the operation as soon as possible. These plugging arrangements are also tied to the P.H. Barnes lease as well, which has turned into a very positive outcome for the Company. This action will officially resolve all legal problems with C&C Petroleum and the Railroad Commission of Texas once the leases are plugged.
In the process of clarifying the leases ownership interest, there were some necessary regulatory sanctions placed on the Company. These sanctions, such as the”639 operating suspension” were all expected and were unfortunately necessary in order to resolve these ownership issues. Once the P.H. Barnes lease and McComas leases are fully plugged, C&C Petroleum Management and Treaty Energy Corporation will be in full compliance of all regulatory statutes and any and all liabilities or operational issues will have been resolved. Treaty Energy has been working on this issue with legal counsel for the last three to four months and is relieved to have it confirmed by the Railroad Commission of Texas.
These issues have little to no impact on current operations in Texas. As explained several times before to investors, C&C Petroleum Management’s compliance issues do not hinder operations because of the new operating structure that Treaty Energy Corporation initiated last year which does not rely upon C&C Petroleum’s operator status.
Stockton Lease (C&C Petroleum Management):
The Stockton lease has had two major developments. For the last two months, the Company has been evaluating whether to put the Stockton #1 into full production or to re-utilize it as an injection well to boost production on the other Stockton leases. After several work overs, the production on the Stockton #1 is of a sufficient cut and quality to put the well into full production. Please see the image below to see a cut pulled off the Stockton #1 on the morning of February 14, 2014:
There is also an additional video showing the cut by clicking here .
The second major update is pertaining to the Stockton #2. Last week, crews determined that the Stockton #2 would require a completely new pump jack to maintain production. The Company plans to also acidize and frack the wells at a later date.
Contact
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
