Treaty Energy Corporation Newsletter for the Wee
Post# of 39368
Posted On: 02/24/2014 6:19:01 PM
Treaty Energy Corporation Newsletter for the Week of February 24, 2014
This newsletter is for the week of February 24, 2014 and contains current information on Company operations as of February 21, 2014. Information contained in this newsletter may be outdated at the time of release.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 .
As an official notice to investors, Treaty Energy Corporation’s headquarters will be closed on Monday, March 3, 2014 and Tuesday, March 4, 2014 due to the Mardi Gras Holiday in New Orleans. Many of the streets and bank branches necessary to Company operations will not be open during these two days. Investors should be aware of this scheduled closure.
Changes to Newsletters (Treaty Energy Corporation):
Treaty Energy Corporation is now publishing newsletters once every two weeks. This change, along with the Company’s reasoning, was explained in the last scheduled newsletter. For more information on this change, please refer to the newsletter dated February 10, 2014.
Treaty Energy Corporation continues to be committed to full transparency and is in full compliance with its SEC filings, being listed on the OTCQB exchange.
Clarification on Production (Treaty Energy Corporation):
The investor relations department and management have received numerous calls over the last several weeks regarding the Company's dependence on production. At this time, the Company would like to offer clarification on its revenue strategy going forward in order to reduce investor confusion. All of this has been made publicly available in SEC documentation and voluntary publication material.
On January 16, 2014, Treaty Energy Corporation released a six month prospectus for investors . On page six of this document, the Company goes in depth regarding its revenue model for the next six months. Furthermore, on pages 25 & 26 of the latest 10-Q filing the Company outlined its strategy for new revenue streams. The Company strongly recommends that all investors concerned about oil and gas production read these two documents.
Several investors have complained to the investor relations department that the Company is not being forthright in sharing information on production. Simply put, the Company has moved to a revenue model where production is not necessary for revenue generation.
As stated in the third quarter financials of 2013, “During this time the Company’s revenue stream has changed. After the success of the Mitchell lease, the Company recognized the investment demand for “turn-key” oil and gas properties. Recognizing shareholder concerns regarding immediate cash-flows, the Company plans to fully develop a well from start to finish and then sell the Company’s Net Revenue Interests and Working Interests on leases (or individual wells) to oil and gas investors. The Company will maintain some oil and gas income, but will likely result from unsold units of oil and gas wells/leases .”
The plan of operation for the Company is as follows: Oil and Gas leases will be developed for the explicit purpose of selling large majority interests to potential buyers for turn-key investments. These sale documents are typically under non-disclosure agreements and the binding sale agreements are considered company confidential. Over time, the revenue stream may shift back to oil and gas production. However, the current course of action over the next six months is to follow this revenue strategy.
This means that oil and gas production reported to agencies such as the Railroad Commission of Texas will not be accurate indicators of revenue, nor will be unofficial stated production figures. Revenue figures will be reported, just like every other publicly traded company, in the reported financials to the Securities and Exchange Commission. Any other financial figures done independently of these financial documents are going to be incomplete and speculative.
As noted in the Q3 2013 filings, Treaty Energy Corporation had a positive quarter. This was the first positive quarter in Company history, showing that the numerous policy changes undertaken in 2013 are showing to be a success. Management feels that this long term plan of action for revenue generation is a positive one for both the company and shareholders.
The information on Treaty Energy Corporation’s website will be updated in the next week to reflect these changes to reduce further investor confusion on the matter.
West Texas (C&C Petroleum Management, LLC):
Stockton Lease
As reported on February 14, 2014, the Stockton #1 was put into full production. The Stockton #1 lease has been producing consistently and a load of oil was sold off the lease last week. The Company still maintains a large ownership interest in this well and oil and gas sales are directly attributed to revenues for the Company.
The Stockton #2 well is complete and produces. However, new issues continue to develop. As such, the Company has opted to completely replace the pump jack on the well to hopefully stop the on-going repair/production cycle. The Stockton #2 will also receive a frack and acid job. This task is scheduled to be completed next week. The Company still maintains a limited ownership interest in the well. As such, these problems have a minimal impact on the Company’s financials. The Company has hired a new field engineer to evaluate and repair the well to bring it to its full operating potential.
The Stockton #3 remains uncompleted. This is due to the financing/investment terms that the Company is seeking on the Kubacak lease, and is unrelated to the Company’s current financial standings. The Company is seeking a no liability completion, which the Company believes is more preferable to than taking on a full liability risk to completing the well.
Kubacak Lease
The Company continues to move forward in acquiring financing/investment on the Kubacak Lease so that it may begin the project within the first quarter of 2014 as announced in the six month prospectus. The Company is making significant progress in achieving financing and is moving as quickly as possible to secure full financing on the project.
Shareholders should be aware that despite urgency to move forward, discussions in this matter move at a certain speed. Treaty Energy is attempting to speed up the process as much as possible to ensure investor’s demands are met; however again, we cannot control the rate at which discussions occur.
We thank shareholders for their continued patience in this matter as we understand that frustrations are high at this period in time. The Company firmly believes that this financing project will be incredibly beneficial for all parties involved.
Belize (Treaty Belize Energy, LTD):
The Company is continuing to work with Princess Petroleum, LTD and its partners in Belize in a limited capacity and no official decision has been made with regards to the Company’s international operations. This official decision may or may not include Belize; however that decision will be made at a later date in time.
However, at this time the Company does want to clear up some misinformation and speculation regarding our Belize operations:
Legal Matters (Treaty Energy Corporation):
On February 12, 2014, a special attorney meeting was held in the matter of 2:13-bk-11238. At this meeting, the attorneys met with the judge to discuss several pre-trial issues. The petitioner’s original attorney, Reginald J. Laurent, noted that he did not represent five of the six petitioners. As such, the judge has ordered an additional 30 days for the remaining petitioning creditors to file a written legal response to the court. All parties have been notified of this order. After the expiration of 30 days, the court will schedule another pre-trial hearing.
Shareholders should be aware that the company is aggressively pursuing legal action against these individuals for the damage that they caused (and continue to cause) against the Company.
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
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have “proven but undeveloped reserves” at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTCQB, the marketplace for companies that are current in their SEC reporting requirements. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Forward-Looking Statements
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company’s filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
As an official notice to investors, Treaty Energy Corporation’s headquarters will be closed on Monday, March 3, 2014 and Tuesday, March 4, 2014 due to the Mardi Gras Holiday in New Orleans. Many of the streets and bank branches necessary to Company operations will not be open during these two days. Investors should be aware of this scheduled closure.
Changes to Newsletters (Treaty Energy Corporation):
Treaty Energy Corporation is now publishing newsletters once every two weeks. This change, along with the Company’s reasoning, was explained in the last scheduled newsletter. For more information on this change, please refer to the newsletter dated February 10, 2014.
Treaty Energy Corporation continues to be committed to full transparency and is in full compliance with its SEC filings, being listed on the OTCQB exchange.
Clarification on Production (Treaty Energy Corporation):
The investor relations department and management have received numerous calls over the last several weeks regarding the Company's dependence on production. At this time, the Company would like to offer clarification on its revenue strategy going forward in order to reduce investor confusion. All of this has been made publicly available in SEC documentation and voluntary publication material.
On January 16, 2014, Treaty Energy Corporation released a six month prospectus for investors . On page six of this document, the Company goes in depth regarding its revenue model for the next six months. Furthermore, on pages 25 & 26 of the latest 10-Q filing the Company outlined its strategy for new revenue streams. The Company strongly recommends that all investors concerned about oil and gas production read these two documents.
Several investors have complained to the investor relations department that the Company is not being forthright in sharing information on production. Simply put, the Company has moved to a revenue model where production is not necessary for revenue generation.
As stated in the third quarter financials of 2013, “During this time the Company’s revenue stream has changed. After the success of the Mitchell lease, the Company recognized the investment demand for “turn-key” oil and gas properties. Recognizing shareholder concerns regarding immediate cash-flows, the Company plans to fully develop a well from start to finish and then sell the Company’s Net Revenue Interests and Working Interests on leases (or individual wells) to oil and gas investors. The Company will maintain some oil and gas income, but will likely result from unsold units of oil and gas wells/leases .”
The plan of operation for the Company is as follows: Oil and Gas leases will be developed for the explicit purpose of selling large majority interests to potential buyers for turn-key investments. These sale documents are typically under non-disclosure agreements and the binding sale agreements are considered company confidential. Over time, the revenue stream may shift back to oil and gas production. However, the current course of action over the next six months is to follow this revenue strategy.
This means that oil and gas production reported to agencies such as the Railroad Commission of Texas will not be accurate indicators of revenue, nor will be unofficial stated production figures. Revenue figures will be reported, just like every other publicly traded company, in the reported financials to the Securities and Exchange Commission. Any other financial figures done independently of these financial documents are going to be incomplete and speculative.
As noted in the Q3 2013 filings, Treaty Energy Corporation had a positive quarter. This was the first positive quarter in Company history, showing that the numerous policy changes undertaken in 2013 are showing to be a success. Management feels that this long term plan of action for revenue generation is a positive one for both the company and shareholders.
The information on Treaty Energy Corporation’s website will be updated in the next week to reflect these changes to reduce further investor confusion on the matter.
West Texas (C&C Petroleum Management, LLC):
Stockton Lease
As reported on February 14, 2014, the Stockton #1 was put into full production. The Stockton #1 lease has been producing consistently and a load of oil was sold off the lease last week. The Company still maintains a large ownership interest in this well and oil and gas sales are directly attributed to revenues for the Company.
The Stockton #2 well is complete and produces. However, new issues continue to develop. As such, the Company has opted to completely replace the pump jack on the well to hopefully stop the on-going repair/production cycle. The Stockton #2 will also receive a frack and acid job. This task is scheduled to be completed next week. The Company still maintains a limited ownership interest in the well. As such, these problems have a minimal impact on the Company’s financials. The Company has hired a new field engineer to evaluate and repair the well to bring it to its full operating potential.
The Stockton #3 remains uncompleted. This is due to the financing/investment terms that the Company is seeking on the Kubacak lease, and is unrelated to the Company’s current financial standings. The Company is seeking a no liability completion, which the Company believes is more preferable to than taking on a full liability risk to completing the well.
Kubacak Lease
The Company continues to move forward in acquiring financing/investment on the Kubacak Lease so that it may begin the project within the first quarter of 2014 as announced in the six month prospectus. The Company is making significant progress in achieving financing and is moving as quickly as possible to secure full financing on the project.
Shareholders should be aware that despite urgency to move forward, discussions in this matter move at a certain speed. Treaty Energy is attempting to speed up the process as much as possible to ensure investor’s demands are met; however again, we cannot control the rate at which discussions occur.
We thank shareholders for their continued patience in this matter as we understand that frustrations are high at this period in time. The Company firmly believes that this financing project will be incredibly beneficial for all parties involved.
Belize (Treaty Belize Energy, LTD):
The Company is continuing to work with Princess Petroleum, LTD and its partners in Belize in a limited capacity and no official decision has been made with regards to the Company’s international operations. This official decision may or may not include Belize; however that decision will be made at a later date in time.
However, at this time the Company does want to clear up some misinformation and speculation regarding our Belize operations:
- Several individuals have reported that the equipment has been seized/removed from the country. This statement is false. Both Princess Petroleum and Treaty Energy have placed the equipment in a secure location with 24 hour security to prevent theft or damage.
- Reports have (again) appeared on various sites that Treaty Energy Corporation’s drilling rig in Belize is stolen. This untrue rumor comes from Mack Maxcey, an individual involved in the Company’s on-going bankruptcy damage litigation suit. The Company has taken the concerns of investors and forwarded them to our legal counsel to bring forth to the judge as evidence in this matter.
Legal Matters (Treaty Energy Corporation):
On February 12, 2014, a special attorney meeting was held in the matter of 2:13-bk-11238. At this meeting, the attorneys met with the judge to discuss several pre-trial issues. The petitioner’s original attorney, Reginald J. Laurent, noted that he did not represent five of the six petitioners. As such, the judge has ordered an additional 30 days for the remaining petitioning creditors to file a written legal response to the court. All parties have been notified of this order. After the expiration of 30 days, the court will schedule another pre-trial hearing.
Shareholders should be aware that the company is aggressively pursuing legal action against these individuals for the damage that they caused (and continue to cause) against the Company.
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
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have “proven but undeveloped reserves” at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTCQB, the marketplace for companies that are current in their SEC reporting requirements. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Forward-Looking Statements
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company’s filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
(0)
(0)Treaty Energy Corporation (TECO) Stock Research Links
Scroll down for more posts ▼