Treaty Energy Corporation Newsletter for the Week of November 25, 2013
This newsletter is for the week of November 25, 2013 and contains current information on Company operations as of November 22, 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 Information contained in this newsletter may be outdated at the time of release.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 .
Please note: Due to the upcoming holidays, there will not be a newsletter published on the following dates: December 2 nd , December 23 rd , December 30 th or January 6 th , 2014 due to the short operating weeks and holiday schedule. Full un-interrupted weekly scheduled newsletters will re-begin on January 16, 2014.
To make up for the lack of information during this time, the Company will be publishing an investment packet for the year that summarizes all of the year’s events and a six month investment prospectus on January 16, 2014.
As always, the Company will be updating shareholders through social media/email channels when appropriate. Investors that have questions or concerns during this time are strongly encouraged to call/email the Company’s investor relations line at 504-301-4475 or investors@treatyenergy.com.
Corporate Filings (Treaty Energy Corporation):
The Company filed a NT 10-Q on November 14, 2013 which granted us an extension of 5 calendar days to file our 10-Q for the third quarter. The Company attempted to meet the new filing deadline of November 19, 2013, but unfortunately missed that targeted deadline. Despite missing the filing date, the Company is now on its third round of edits and is making tremendous progress. The Company projects that it will file the third quarter financials within the first two weeks of December.
While the Company is still filing the document late, the Company has been playing catch-up since filing its first 2013 document. The third quarter will have been completed in roughly one month’s time and work will begin on the 2013 10-K on December 31, 2013 once the financial year has ended. The Company is planning to file the 10-K before the filing date to restore investor confidence.
West Texas (C&C Petroleum Management, LLC):
Due to inclement weather, West Texas operations have been suspended for the last four days and due to the temperature, production has been suspended to prevent possible damage to the well heads or flow lines. Drilling plans and work on all leases have been suspended until the weather clears up.
To further complicate matters, operations will be delayed starting Thursday of this week due to Thanksgiving. The Company hopes that all persons affiliated with the Company have a great Thanksgiving holiday.
Stockton #2
The Company expects the electrical to be hooked up to the Stockton #2 well next week. The Company turned the Stockton #2 on briefly, but had to shut down the well to perform normal start up adjustments to the pump jack. A crew was called out to adjust the pump jack on the Stockton #2, but was unable to reach the well before the inclement weather hit. Crews are scheduled to perform the last adjustments on Wednesday of this week; however this work may occur the following week depending on scheduling.
During the short production time (roughly 24 hours) the production rate spiked to approximately 66 BOPD, which above the announced initial production rate of 62 BOPD. The Company will keep the IPR at 62 despite this increase, as the paper work is already being filed with the RRC.
Stockton #1
The Company performed most of the major work over operations on the well last week and turned it back on for a brief time before having to shut it down due to the inclement weather. The Company expects to complete all major remaining work on the Stockton #1 next week.
Kubacak #1, #2 and #3/Stockton #3
Management from the Company were in Texas starting on Tuesday last week finalizing a drilling schedule on the next set of drills as stated in previous newsletters. An agreement was reached last week, and crews were expected to move the rig on Friday. However, before crews were able to deconstruct and move the drilling rig, the inclement weather hit preventing the rig from being moved.
The delay in moving the drilling rig was caused by the drilling contractor moving four other rigs simultaneously and the need to perform general maintenance/repairs. While work over/completion crews performed work on the Stockton #1/#2, this appeared to be opportune time for both parties to perform their respective operations before continuing on with new drills.
Based on internal timelines, the Company still expects to meet its end of year deadline of drilling three more wells. However, as previously stated completion on those wells may extend into 2014.
Once the rig is off the Stockton #3 a completion crew will move in to complete the well. The crew is already on-site to begin immediately. Completion crews expect to either begin operations on Wednesday this week or Tuesday next week, depending on ground conditions before the Thanksgiving holiday.
P.H. Barnes Lease and TRRC Resolution
The Company has created a plan of operation for the P.H. Barnes lease after speaking with several plugging contractors. The plan will be submitted to the RRC on Wednesday or Friday of this week and will have to receive RRC approval from the office in Abilene. Should the operation be approved, the Company can begin operations once all the logistics are put in place.
Based on the structure of the well, the Company plans to plug the well in a similar fashion to that of underground silos that are very similar in structure and depth. Again, once the plan is submitted and approved, the Company will launch a dedicated portion of its website to list all of its RRC compliance issues and how the company plans to resolve them.
McComas Lease and TRRC Resolution
The Company has responded to the RRC with an attorney letter requesting a hearing. A hearing date will be scheduled within the next 60 days, however the Company believes that it will resolve the issue before a hearing is required. We will have more information when available and when we are legally advised we can.
Belize (Treaty Belize Energy, Ltd):
San Juan #3
The status of San Juan #3 remains unchanged. The packer is still lodged in the borehole. The Company is determining what the next best course of action will be and will announce its plans at a later date.
