Treaty Energy Corporation Newsletter for the Week
Post# of 39368
Posted On: 10/08/2013 12:38:41 AM
Treaty Energy Corporation Newsletter for the Week of October 7, 2013
This newsletter is for the week of October 7, 2013 and contains information current Company operations as of October 4, 2013. Information contained in this newsletter may be outdated at the time of release.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 .
Quarterly Financials/OTC Status (Treaty Energy Corporation):
On Thursday, October 3, 2013, OTC Markets changed Treaty Energy Corporation’s tier from OTC Pink Limited to OTC Pink No Information. As per OTC Market’s rules, “Companies in this category do not make Current Information available via OTC Markets Group's News Service, or if they do, the available information is older than six months.”
While Treaty Energy Corporation has recently made their first quarter 10-Q available, this financial information contains information up to March 31, 2013 which marks a 6 month lapse in financial information available. Once the Company has filed its second quarter 10-Q, the company will return to OTC Pink Limited Status, and if the Q3 is filed on time (November 15, 2013), then the Company will return to OTCQB status and will be in full compliance.
Despite the description, the Company is still very much in operation and is providing information weekly to shareholders who wish to request it. The Company also publishes newsletters per SEC regulations on notable Company events. However, since the Company does utilize OTC Market’s newswire service (due to its limited market visibility), the Company received the “No Information” tier listing.
The Company has spoken to both the OTC Markets and its auditors to elevate shareholders concerns on this change. The Company’s auditors will be in New Orleans this week to complete the second quarter 10-Q as quickly as possible. The Company plans to file the second quarter 10-Q within the next two weeks and meet the SEC filing deadline for third quarter filings (November 15, 2013) to bring TECO into full SEC compliance and restore OTCQB status for shareholders that are concerned about the OTC’s listing.
The Company wishes to emphasize to all current shareholders that it is committed to transparency and has published a weekly newsletter for 10 weeks, based upon the feedback it has received from shareholders. The Company is by no means withholding information to shareholders and stating that the Company provides “no information” is not an accurate description of the Company’s current activities. The Company is currently drilling two new wells in its Tuscola Development, operating wells in East Texas and undergoing an active hydrocarbon exploration in Belize. However, this is how the OTC lists the Company despite its complaints with the status.
Corporate Changes (Treaty Energy Corporation):
The Company has begun the process of moving its corporate headquarters to a new address in New Orleans. The new address for the Corporation will be 317 Exchange Pl., New Orleans, LA 70115. Communications during this time may be delayed or unavailable as communications and network operations are switched to the new location.
Treaty Energy went ahead and moved its investor relations department to the new location early in order to reduce delays in communication to shareholders. However, information from this department may be delayed as it facilitates with the move.
The Company has opted to move to a new location in its attempts to increase profitability. Offices and leases have also been condensed to decrease operating costs.
West Texas (C&C Petroleum Management, LLC):
COO Bruce Gwyn spent most of last week in Texas to inspect site operations with David Jakobot of U.S. Fuels, Inc of Breckenridge, Texas. The Company is pleased with the progress it has made in the Tuscola area and wishes to continue developing the region. In addition to further development plans, Mr. Gwyn and Mr. Jakobot went over current operations and did a thorough review of all short term projects in the area.
The Company is currently evaluating new lease options and is making plans to drill several additional wells in the area by the end of the year. Multiple permits will be filed over the next couple of months to ensure that drilling continues in quick succession. As the Tuscola field develops, the Company will also file multiple permits on multiple leases to ensure that drilling contingencies are available. Further details will be made available over the next 72 hours.
Stockton #2 & #3
Drilling continued over the weekend on the Stockton #2 well in Tuscola, TX. As of 7:35PM on October 6, 2013, the rig on the Stockton #2 was at exactly 3,922ft. The drill was estimated to reach total depth (TD) on Saturday, but the systems noted a slight 2 degree tilt in the wellbore, which prompted the crew to adjust the drill slowing down the drills progress. As of the time of release, the drill is nearing total depth at 4,500ft and has approximately 300ft. remaining. The drill will likely reach TD sometime this evening or tomorrow early morning.
Upon completion, the rig will remain in position and a logging unit will be brought into position, the well will be logged to determine the best zone for perforation. The well will then be cased and cemented and the well will undergo normal casing operations.
Once the well has been completed the Company will review the performance of the well before moving over to the Stockton #3. The Company would like to evaluate the results of Stockton #2 before immediately drilling the Stockton #3.
Mitchell #1
The work over on the Mitchell #1 has proved to be successful and the well is in full production. Based on initial estimates, the well appears to be producing above the estimated 5BPD. However, an official production rate will be announced next week by the Company once enough data has been collected. Below is a picture of some oil that was collected straight from the well:
Belize (Treaty Belize Energy, Ltd):
After analyzing the packer last week and noticing a crack in the packer, the Company attempted to remove the packer using a new collar. The packer was lifted another 100ft and dislodged itself from the collar. The Company will attempt to remove the packer with an overshoot tool on October 8, 2013. The overshoot tool is a fishing device that has been put together over the last few days. The rig will be fitted with the device on October 7, 2013. If unsuccessful, the rig will be fitted with the drill and Treaty Belize Energy will re-enter the well and drill through the stuck packer. Drilling through the packer will delay the process further and will force the Company to purchase a new packer, incurring further cost. As a result, drilling through the packer is the method of last resort.
However if the Company is unsuccessful in removing the packer on October 8, 2013, the Company will drill through the packer on either Thursday or Friday and perform the perforation after re-entry.
Contact:
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-754-6926
Fax: 504-324-0844
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