Thanks for the prayers.... Mom is stable in ICU an
Post# of 39368
Posted On: 10/29/2013 2:17:34 AM
Thanks for the prayers.... Mom is stable in ICU and is fully sedated. We're looking for 3-5 more days of ICU. Keep the prayers coming. Thanks!
As for as TECO, I haven't missed a step. We should see the pits being dug this AM.
Monday's update.....
The Company has made significant changes to the drilling schedules in West Texas. In summary:
As for as TECO, I haven't missed a step. We should see the pits being dug this AM.
Monday's update.....
The Company has made significant changes to the drilling schedules in West Texas. In summary:
- The already permitted Stockton #3 well will be drilled later this week.
- Work on the Mitchell #5 well is suspended until further notice.
- Drilling is expected to begin on the Stockton #3 this Thursday/Friday.
- Stockton #2 is slated to be completed on Thursday/Friday.
- Future wells beyond the Stockton #3 will be announced in the near future with protocols in place to reduce future permitting problems.
Mitchell #5
Work on the Mitchell #5 is suspended until further notice. The situation on the Mitchell #5 has become increasingly complicated. Two weeks ago, Treaty Energy Corporation, through US Fuels, applied for an expedited permit. All parties involved (including the land owner) had no issue with the permit being applied for and the well being drilled. The Company did not expect for the Mitchell #5 to have any delays as it was to be drilled within TRRC regulations.
After applying for the permit, the TRRC issued several problem letters with the location of the well. While all the applying parties knew that the distance may have been an issue, the parties informed the TRRC that the well would be perforated into another zone (Grey Sandstone) which under existing regulations, allows for new wells to be drilled closer to each other than normally allowed. Despite informing the TRRC of the Company’s intentions, problem letters regarding the well’s proximity kept occurring.
Representatives from the Company met with TRRC officials in Abilene to explain the situation and show that the well could be exempted under existing TRRC regulations. The Company expected that after meeting with representatives last Wednesday, the Company would be cleared to drill. Instead, the well was flagged with an SWR 38 exemption by officials higher up. This exemption flag would require an authorized signature from the land owner and a TRRC inspection of the site.
The Company received authorization from the land owner, but the TRRC informed the Company that the site inspector may not be able to visit for two weeks or more. Further, depending on the results of the site inspection, the Company may have to wait for a hearing on the matter and be subjected to extra requirements that were unknown. The Company, with the interests of decreasing delays and improving shareholder confidence, has opted to not delay the project any further.
As a result of time wasted and potential unforeseen delays, work on the Mitchell #5 is suspended until further notice. The Company may opt to return to this site in the future, but only after the TRRC has cleared the site to drill beforehand. Instead, the Company will opt to drill the already permitted Stockton #3 well instead. Alternative drilling plans are being worked on to acquire a new lease as a substitute to the Mitchell #5.
Stockton #3
In response to the suspension of the Mitchell #5 well, the Company will begin to drill the Stockton #3 well this week. The current timeline calls for the pits to be dug on the Stockton #2 tomorrow morning (October 29, 2013). The drilling rig will then move to the zone on Wednesday, October 30, 2013 to begin drilling on October 31 st or November 1 st .
Initially, the Company wanted to drill the Mitchell #5 well before the Stockton #3 to determine the potential production rates on the Stockton #3 as it is considered an outfield drill. However, based on the data provided by the well logs on the Stockton #2, the Company believes that the Stockton #3 should produce similarly to the Stockton #2 due to the strength of the well’s perforation zone.
The timeline provided is provided that there are no major weather delays that may occur between now and then. The Company expects some thunderstorms on Wednesday, but do not believe that they will cause a major delay in the drilling schedule. Concerned shareholders may view current weather conditions in the area by visiting: http://www.weather.com/weather/today/USTX1381:1:US .
Stockton #2
With the planned removal of the rig on Wednesday, a completion crew will move in to the Stockton #2 to complete the well shortly after the rig is removed. The Company will inform investors of the initial production rate shortly after the completion paperwork is filed with the TRRC and then follow with the stabilized production rates 1-2 weeks after.
Changes to Permitting Protocols
After the issues resulting from the TRRC on the Mitchell #5 well, the Company has instituted protocols to ensure that permits are applied for several weeks in advanced. The Company believes that each permit is expected to take between 2-3 weeks, despite being an expedited permit from the TRRC. All future drilling schedules will reflect this 2-3 week holding period.
The Company will look to reduce that wait period by utilizing experts in oil and gas permitting on future wells.
Future Well Operations in W. Texas
Based on the suspension of the Mitchell #5 well, the Company will expedite the acquisition of more leases to begin drilling on before the end of the year. The Company will likely be announcing future acquisitions by the end of the week.
Belize (Treaty Belize Energy, Ltd):
The company continues to manufacture a component to remove the stuck packer in San Juan #3. The Company planned to release a separate packet for investors to catch up on what has happened in Belize over the course of the drilling. Instead, the Company has placed the information in this newsletter below:
A Brief Timeline of Events on San Juan #3
Work on the Mitchell #5 is suspended until further notice. The situation on the Mitchell #5 has become increasingly complicated. Two weeks ago, Treaty Energy Corporation, through US Fuels, applied for an expedited permit. All parties involved (including the land owner) had no issue with the permit being applied for and the well being drilled. The Company did not expect for the Mitchell #5 to have any delays as it was to be drilled within TRRC regulations.
After applying for the permit, the TRRC issued several problem letters with the location of the well. While all the applying parties knew that the distance may have been an issue, the parties informed the TRRC that the well would be perforated into another zone (Grey Sandstone) which under existing regulations, allows for new wells to be drilled closer to each other than normally allowed. Despite informing the TRRC of the Company’s intentions, problem letters regarding the well’s proximity kept occurring.
Representatives from the Company met with TRRC officials in Abilene to explain the situation and show that the well could be exempted under existing TRRC regulations. The Company expected that after meeting with representatives last Wednesday, the Company would be cleared to drill. Instead, the well was flagged with an SWR 38 exemption by officials higher up. This exemption flag would require an authorized signature from the land owner and a TRRC inspection of the site.
The Company received authorization from the land owner, but the TRRC informed the Company that the site inspector may not be able to visit for two weeks or more. Further, depending on the results of the site inspection, the Company may have to wait for a hearing on the matter and be subjected to extra requirements that were unknown. The Company, with the interests of decreasing delays and improving shareholder confidence, has opted to not delay the project any further.
As a result of time wasted and potential unforeseen delays, work on the Mitchell #5 is suspended until further notice. The Company may opt to return to this site in the future, but only after the TRRC has cleared the site to drill beforehand. Instead, the Company will opt to drill the already permitted Stockton #3 well instead. Alternative drilling plans are being worked on to acquire a new lease as a substitute to the Mitchell #5.
Stockton #3
In response to the suspension of the Mitchell #5 well, the Company will begin to drill the Stockton #3 well this week. The current timeline calls for the pits to be dug on the Stockton #2 tomorrow morning (October 29, 2013). The drilling rig will then move to the zone on Wednesday, October 30, 2013 to begin drilling on October 31 st or November 1 st .
Initially, the Company wanted to drill the Mitchell #5 well before the Stockton #3 to determine the potential production rates on the Stockton #3 as it is considered an outfield drill. However, based on the data provided by the well logs on the Stockton #2, the Company believes that the Stockton #3 should produce similarly to the Stockton #2 due to the strength of the well’s perforation zone.
The timeline provided is provided that there are no major weather delays that may occur between now and then. The Company expects some thunderstorms on Wednesday, but do not believe that they will cause a major delay in the drilling schedule. Concerned shareholders may view current weather conditions in the area by visiting: http://www.weather.com/weather/today/USTX1381:1:US .
Stockton #2
With the planned removal of the rig on Wednesday, a completion crew will move in to the Stockton #2 to complete the well shortly after the rig is removed. The Company will inform investors of the initial production rate shortly after the completion paperwork is filed with the TRRC and then follow with the stabilized production rates 1-2 weeks after.
Changes to Permitting Protocols
After the issues resulting from the TRRC on the Mitchell #5 well, the Company has instituted protocols to ensure that permits are applied for several weeks in advanced. The Company believes that each permit is expected to take between 2-3 weeks, despite being an expedited permit from the TRRC. All future drilling schedules will reflect this 2-3 week holding period.
The Company will look to reduce that wait period by utilizing experts in oil and gas permitting on future wells.
Future Well Operations in W. Texas
Based on the suspension of the Mitchell #5 well, the Company will expedite the acquisition of more leases to begin drilling on before the end of the year. The Company will likely be announcing future acquisitions by the end of the week.
Belize (Treaty Belize Energy, Ltd):
The company continues to manufacture a component to remove the stuck packer in San Juan #3. The Company planned to release a separate packet for investors to catch up on what has happened in Belize over the course of the drilling. Instead, the Company has placed the information in this newsletter below:
A Brief Timeline of Events on San Juan #3
- On March 15, 2013, Treaty Belize Energy, Ltd. began full drilling operations on San Juan #3 in Belize, C.A.
- On April 17, 2013, Oceana won a court ordered injunction vs. the Government of Belize. While this injunction did not affect oil exploration operations on shore, it nullified a portion of the Company’s contracts offshore. As a precaution the Company stopped operations despite being fairly close to reaching total depth. During this time, several of the events below had gaps
- On April 30, 2013, San Juan #3 reached a total depth (TD) of 3,405ft. The Company issued an announcement on May 2, 2013 that the Company would continue with operations based on the comments by the Prime Minister of Belize.
- Shortly after reaching TD, TBE set 5 ½ casing to a depth of 3,290ft. There were two fractures in the well, one at 3,300ft. and another at 3,355ft.
- Upon encountering the first fracture at 3,300ft., TBE lost circulation instantly. According to the drilling break and log, it is believed that the fracture has an intense secondary porosity and took drilling fluid in excess of 5 bbl/min. A rule of thumb is that a zone will take fluid and give up fluid at the same rate at a given pressure.
- Because TBE needed to drill beyond the first fracture depth to allow for a logging tool and rat hole for full completion, TBE encountered the second fracture 55ft. below it. The second fracture appeared to be worse than the first fracture.
- TBE filled and cemented both fractures initially to obtain a seal on the bottom of the well. The bottom fracture is a significant water drive and the top fracture per electric logs contains the positive signs for the potential production of oil.
- Over the course of three weeks, TBE attempted to sand gravel and cement plug the bottom fracture. TBE successfully plugged the bottom fracture on the third major attempt. At that point, TBE moved forward on the completion procedure. However, at that point, TBE encountered issues with the packer. TBE successfully pulled the packer to a depth of 1,050ft before it inadvertently rested and remained stuck in the well.
- TBE for the last 4 weeks has attempted to fish the packer out of the well. On the first try a machine shop made tool stripped the packer, forcing a bypass tool having to be made. Several TBE made tools onsite were used in an attempt to fish the packer from the well before the packer cracked.
- TBE will now move to have another machine shop built tool made. This tool has so far taken approximately two-three weeks to build and test based upon the impressions made on site.
- Once the packer has been removed from the well, it is expected to take a week to fully complete the well and determine its possible production potential.
- The fracture at 3,300ft. will be shot with a 10ft perforation gun and spotted with acid to break back into the “sweet spot” that the rig encountered while drilling.
- The well will then be swabbed and acidized to be put into production if possible.
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