This is a whole lot to accomplish with current res
Post# of 39368
Posted On: 09/22/2014 8:28:12 AM
This is a whole lot to accomplish with current resources...
The Board of Directors and Management of TREATY Energy Corporation are pleased to provide to shareholders the first in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction…
Firstly, we wish to clarify any confusion amongst shareholders that PRIVCO is in fact the actual name of the company. A company named PRIVCO is not in fact the transactional partner; PRIVCO is a fairly common substitution term for “a private company” found in many legal documents.
The positive news for TREATY shareholders is that the company we are temporarily calling “PRIVCO” has progressed in completing the acquisition, subject to all standard regulatory approvals, of a publicly traded company. Positive to note is that the new entity will be a clean “Delaware corporation” that is a fully reporting OTC Bulletin Board company from day one. We expect to distribute a Press Release in conjunction with PRIVCO regarding the joint relationship as soon as we are able to legally do so. This was a critical step in reorganizing and restructuring TREATY into an entity that can grow and thrive as a dynamic, growth oriented oil & gas production company and a separate public entity that will be a thriving oilfield service company. There will be tremendous synergistic opportunities to benefit these two companies, with each able to attract its own investors in different sectors of the capital markets.
The two companies will also share some administrative and management functions in order to save costs and provide the best corporate governance possible. To this end the companies will announce a new CHIEF FINANCIAL OFFICER (CFO) imminently. TREATY shareholders deserve to have prudent, and sound financial management. The Chairman/CEO of TREATY cannot and will not act any longer as the final arbiter of financial documentation for the company.
Working with an effective and qualified team to ensure strict adherence to corporate governance is one step toward ensuring that TREATY is able to focus on strategic growth. The other will be that for the first year of its relationship with PRIVCO, TREATY and PRIVCO will establish an oversight committee to ensure strict compliance with all regulatory issues, thereby ensuring sound corporate governance, in addition to ensuring that TREATY’s legacy issues do not impede the growth of either company as we seek to liberate TREATY’s valuable oilfield service assets.
In addition, TREATY will have the opportunity to benefit from potential joint ventures wherein PRIVCO will gain a working interest in exchange for providing oilfield services. Currently, opportunities for strategic partnerships exist in New Mexico, Wyoming, Montana and Texas. The oversight committee will ensure that any corporate interrelationships are managed properly and in accordance with all regulatory requirements.
We look forward to continuing to update our shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The transfer of the Stockton Field to TEXAS SANDS RESOURCES LLC is in process with the TEXAS RAILROAD COMMISSION (the “TRRC”). The company is pleased to announce that it will install a full “water treatment system” (the “SRS System”) at the Stockton lease in November. The SRS System will incorporate proprietary technology to not only clean the water to be free of oil and solids, but will in addition use a proprietary process developed by an American private company to desalinate onsite, up to 5,000 gallons or approximately 125 bbls/d of treated water.
We intend to make the Tuscola area a showcase for the technology and what we can do with innovative thinking in the oilfield.
We will be performing the necessary downhole work in October to ready the lease for implementation of the systems and full production.
As to the AQUINAS transaction…
The AQUINAS transaction was in fact a “legacy transaction” left over from previous TREATY management. It allowed AQUINAS the option to back out of the transaction should it find a more “suitable partner”. AQUINAS has chosen to do so. TREATY has expressed its disappointment in the decision. However, TREATY shareholders should also be aware that changes to the risk profile on these wells had meant a fairly substantial increase in the drilling costs than was first discussed with AQUINAS. At this time, albeit, we have left the door open to future discussions with AQUINAS, management believes it is in the best interest of TREATY to focus immediately on bringing stable low risk production and cashflow to the company. We continue to wish AQUINAS all the best in their future endeavors.
As to an immediate Production Plan for TREATY ENERGY…
It is management’s firm belief that TREATY needs to focus on low risk cashflow generating production at this time. Therefore we are pleased to announce that we have entered into a commitment with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating base coupled with significant upside potential.
Said company, holds a non-operated working interest in approximately 1,000 net acres. The targeted assets are currently producing 80 BOPD with associated cashflow of approximately $100,000 to 125,000 per month. Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.), with Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively. Reserve bookings were based on the robust new well permitting activity, which wells are now being drilled and which will serve to increase PDP reserves going forward. At present there is approximately one net well forecast to be brought on stream in the latter half of 2014, and an additional one net well planned for the first half of 2015.
Management made a commitment to utilize strong relationships in the energy industry to bring credibility and real dealflow to TREATY. This is the new direction that we will move in as a company. We will upon completion of due diligence, partner approval and final approval of the Board of Directors update shareholders on this transaction in the Shareholder Update of September 30, 2014. Due to the material nature of the transaction, upon final approvals being granted we will announce the FULL transaction as a detailed Press Release.
Capital market support of the transaction is also based on a serious indication by management that we are taking TREATY in a new and positive direction and that efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
At the outset of the relationship with TREATY, TEXAS SANDS made it clear that capital was required to ensure viability of its production. TEXAS SANDS has covered the cost of getting its production on-stream and stabilized. We are confident that we should be in full operational production by October and that shareholders will begin to see the levels of production on or near those reported previously. This will also serve the company well in its plan to stabilize operations with consistent, predictable monthly revenue.
As to the outstanding issues with the TRRC...
There seems to have been some confusion as to the “legitimacy” of TEXAS SANDS RESOURCES LLC as a corporation due to franchise tax filings not being completed. This was an administrative oversight and has been resolved. All of the assets formerly operated by C&C Petroleum Management LLC are currently in the process of being cleaned up by TEXAS SANDS. This is unfortunately an onerous and time consuming process as it is no secret to shareholders that there are significant outstanding issues with the TRRC. However, please be assured that we are working with TRRC and individuals in Abilene, TX with extensive TRRC background and experience to go through the issues and resolve them one at a time. Communication with TRRC is frequent and has been fruitful. We are confident that ALL outstanding TRRC issues can and will be resolved in time. To this end the McComas lease has been fully plugged and remediated. This lease is now no longer an obligation of TREATY and its shareholders.
As to the Company’s Drilling Plans…
The company announced in its Press Release of August 29, 2014 that it had secured three leases in the Tuscola Area. We are pleased to announce that we are in the process of finalizing said leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. Again our commitment to our shareholders is that we have been taking steps to get this company into the position where investment capital builds cashflow and cashflow dictates risk. WE WILL NOT RISK ANYMORE IN TREATY BEYOND OUR GROWTH CAPITAL UNTIL CASHFLOW SUPPORTS IT.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see our shareholders begin to maximize their return on investment.
As to the Legal & Corporate Matters of the company…
The Board of Directors and management of TREATY has established a process for providing a comprehensive legal strategy for TREATY and its shareholders with a skilled team of legal experts which will report to Mr. Andrew L. Kramer, General Counsel and Corporate Secretary. Management of TREATY takes the legal obligations of the company very seriously. Much if not all of the issues plaguing the company are legacy issues and the TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal proceedings.
The Board of Directors is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as promised in the August 29th Press Release. In keeping with this we will release a further update to shareholders providing further details and progress on the above on or around September 30, 2014.
Be assured your management and Board of Directors are excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
The Board of Directors and Management of TREATY Energy Corporation are pleased to provide to shareholders the first in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction…
Firstly, we wish to clarify any confusion amongst shareholders that PRIVCO is in fact the actual name of the company. A company named PRIVCO is not in fact the transactional partner; PRIVCO is a fairly common substitution term for “a private company” found in many legal documents.
The positive news for TREATY shareholders is that the company we are temporarily calling “PRIVCO” has progressed in completing the acquisition, subject to all standard regulatory approvals, of a publicly traded company. Positive to note is that the new entity will be a clean “Delaware corporation” that is a fully reporting OTC Bulletin Board company from day one. We expect to distribute a Press Release in conjunction with PRIVCO regarding the joint relationship as soon as we are able to legally do so. This was a critical step in reorganizing and restructuring TREATY into an entity that can grow and thrive as a dynamic, growth oriented oil & gas production company and a separate public entity that will be a thriving oilfield service company. There will be tremendous synergistic opportunities to benefit these two companies, with each able to attract its own investors in different sectors of the capital markets.
The two companies will also share some administrative and management functions in order to save costs and provide the best corporate governance possible. To this end the companies will announce a new CHIEF FINANCIAL OFFICER (CFO) imminently. TREATY shareholders deserve to have prudent, and sound financial management. The Chairman/CEO of TREATY cannot and will not act any longer as the final arbiter of financial documentation for the company.
Working with an effective and qualified team to ensure strict adherence to corporate governance is one step toward ensuring that TREATY is able to focus on strategic growth. The other will be that for the first year of its relationship with PRIVCO, TREATY and PRIVCO will establish an oversight committee to ensure strict compliance with all regulatory issues, thereby ensuring sound corporate governance, in addition to ensuring that TREATY’s legacy issues do not impede the growth of either company as we seek to liberate TREATY’s valuable oilfield service assets.
In addition, TREATY will have the opportunity to benefit from potential joint ventures wherein PRIVCO will gain a working interest in exchange for providing oilfield services. Currently, opportunities for strategic partnerships exist in New Mexico, Wyoming, Montana and Texas. The oversight committee will ensure that any corporate interrelationships are managed properly and in accordance with all regulatory requirements.
We look forward to continuing to update our shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The transfer of the Stockton Field to TEXAS SANDS RESOURCES LLC is in process with the TEXAS RAILROAD COMMISSION (the “TRRC”). The company is pleased to announce that it will install a full “water treatment system” (the “SRS System”) at the Stockton lease in November. The SRS System will incorporate proprietary technology to not only clean the water to be free of oil and solids, but will in addition use a proprietary process developed by an American private company to desalinate onsite, up to 5,000 gallons or approximately 125 bbls/d of treated water.
We intend to make the Tuscola area a showcase for the technology and what we can do with innovative thinking in the oilfield.
We will be performing the necessary downhole work in October to ready the lease for implementation of the systems and full production.
As to the AQUINAS transaction…
The AQUINAS transaction was in fact a “legacy transaction” left over from previous TREATY management. It allowed AQUINAS the option to back out of the transaction should it find a more “suitable partner”. AQUINAS has chosen to do so. TREATY has expressed its disappointment in the decision. However, TREATY shareholders should also be aware that changes to the risk profile on these wells had meant a fairly substantial increase in the drilling costs than was first discussed with AQUINAS. At this time, albeit, we have left the door open to future discussions with AQUINAS, management believes it is in the best interest of TREATY to focus immediately on bringing stable low risk production and cashflow to the company. We continue to wish AQUINAS all the best in their future endeavors.
As to an immediate Production Plan for TREATY ENERGY…
It is management’s firm belief that TREATY needs to focus on low risk cashflow generating production at this time. Therefore we are pleased to announce that we have entered into a commitment with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating base coupled with significant upside potential.
Said company, holds a non-operated working interest in approximately 1,000 net acres. The targeted assets are currently producing 80 BOPD with associated cashflow of approximately $100,000 to 125,000 per month. Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.), with Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively. Reserve bookings were based on the robust new well permitting activity, which wells are now being drilled and which will serve to increase PDP reserves going forward. At present there is approximately one net well forecast to be brought on stream in the latter half of 2014, and an additional one net well planned for the first half of 2015.
Management made a commitment to utilize strong relationships in the energy industry to bring credibility and real dealflow to TREATY. This is the new direction that we will move in as a company. We will upon completion of due diligence, partner approval and final approval of the Board of Directors update shareholders on this transaction in the Shareholder Update of September 30, 2014. Due to the material nature of the transaction, upon final approvals being granted we will announce the FULL transaction as a detailed Press Release.
Capital market support of the transaction is also based on a serious indication by management that we are taking TREATY in a new and positive direction and that efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
At the outset of the relationship with TREATY, TEXAS SANDS made it clear that capital was required to ensure viability of its production. TEXAS SANDS has covered the cost of getting its production on-stream and stabilized. We are confident that we should be in full operational production by October and that shareholders will begin to see the levels of production on or near those reported previously. This will also serve the company well in its plan to stabilize operations with consistent, predictable monthly revenue.
As to the outstanding issues with the TRRC...
There seems to have been some confusion as to the “legitimacy” of TEXAS SANDS RESOURCES LLC as a corporation due to franchise tax filings not being completed. This was an administrative oversight and has been resolved. All of the assets formerly operated by C&C Petroleum Management LLC are currently in the process of being cleaned up by TEXAS SANDS. This is unfortunately an onerous and time consuming process as it is no secret to shareholders that there are significant outstanding issues with the TRRC. However, please be assured that we are working with TRRC and individuals in Abilene, TX with extensive TRRC background and experience to go through the issues and resolve them one at a time. Communication with TRRC is frequent and has been fruitful. We are confident that ALL outstanding TRRC issues can and will be resolved in time. To this end the McComas lease has been fully plugged and remediated. This lease is now no longer an obligation of TREATY and its shareholders.
As to the Company’s Drilling Plans…
The company announced in its Press Release of August 29, 2014 that it had secured three leases in the Tuscola Area. We are pleased to announce that we are in the process of finalizing said leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. Again our commitment to our shareholders is that we have been taking steps to get this company into the position where investment capital builds cashflow and cashflow dictates risk. WE WILL NOT RISK ANYMORE IN TREATY BEYOND OUR GROWTH CAPITAL UNTIL CASHFLOW SUPPORTS IT.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see our shareholders begin to maximize their return on investment.
As to the Legal & Corporate Matters of the company…
The Board of Directors and management of TREATY has established a process for providing a comprehensive legal strategy for TREATY and its shareholders with a skilled team of legal experts which will report to Mr. Andrew L. Kramer, General Counsel and Corporate Secretary. Management of TREATY takes the legal obligations of the company very seriously. Much if not all of the issues plaguing the company are legacy issues and the TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal proceedings.
The Board of Directors is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as promised in the August 29th Press Release. In keeping with this we will release a further update to shareholders providing further details and progress on the above on or around September 30, 2014.
Be assured your management and Board of Directors are excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
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