Treaty Energy Corporation Completes Drilling Stock
Post# of 39368
Posted On: 10/11/2013 7:57:01 AM
Re: fallingpennys #20747
Treaty Energy Corporation Completes Drilling Stockton #2 and Announces Plans to Drill Mitchell #5 Well in Tuscola, Texas
Drilling Contractors Have Cased and Cemented the Stockton #2 Well; The Company has Initiated Plans to Increase Drilling Activity Based on Positive Results
Drilling Contractors Have Cased and Cemented the Stockton #2 Well; The Company has Initiated Plans to Increase Drilling Activity Based on Positive Results
NEW ORLEANS, LA – October 11, 2013 -- Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com ), a growth-oriented international energy company, today announced that the Company has cased and cemented the Stockton #2 well in Tuscola, Texas with positive initial results.
The Company began drilling the Stockton #2 well on September 27, 2013. At roughly 8:20AM on October 08, 2013 the drilling operation reached a total depth of 4,783ft. after visible signs of hydrocarbons in the mud pits.
A top-to-bottom wire line log was conducted which, as anticipated, confirmed two pay zones in the well located at 4,075ft. and 4,490ft. with the pay zone sizes being 25ft. and 8ft., respectively. The Stockton #2 well shares a similar pay zone at 4,490ft. to the Company’s successful Mitchell #4 well, which is located approximately 1,000ft. away from this new well site. The multiple confirmed pay zones will serve to extend the longevity of the well. Perforation will occur in the Gardner Limestone at 4,490ft. based on the strength of the reserve at that depth.
The Stockton #2 is expected to perform equally or slightly better than the Mitchell #4 well, which received an initial production rate of 61 barrels of oil per day (BOPD) and received a resting production rate of 45-50 BOPD during the well’s first two months of production.
After a thorough review of the logs and samples, the Company’s drilling contractor began to run casing. Cementing was completed early on October 10, 2013 and is expected to take approximately 72 hours to cure. A crew will arrive early next week to perforate and complete the well. Per Company protocol, the Company will wait 1-2 weeks for production levels to stabilize before announcing production rates.
Mitchell #5 and Stockton #3
Based on data gathered during the wire line logging of the Stockton #2 well, the Company has made the decision to accelerate its plans to drill another well on the Mitchell lease. The new well will be classified as Mitchell #5. The Company currently has net revenue interests ( NRI ) on three wells on the lease. Treaty Energy Corporation will maintain a 75% NRI and 100% working interest (W/I) on the Mitchell #5 well.
After completion of the wire line logging on the Stockton #2, the Company filed an accelerated permit application for the Mitchell #5 well on October 9, 2013. The permit can be viewed at Treaty Energy Corporation’s website at: http://www.treatyenergy.com/sites/default/fil...chell5.pdf .
The Company has decided to drill the Mitchell #5 well before drilling the Stockton #3. The Company would like to evaluate the results of the Stockton #2 before proceeding with the Stockton #3. The primary reasoning behind this decision is that the Stockton #3 extends outfield, while the Mitchell #5 remains in field, where more production data exists.
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