Treaty Energy Corporation Reports Results for Thir
Post# of 94144
11:45a ET November 20, 2012 (PR NewsWire)
Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), a growth-oriented energy company in the oil and gas industry, today reported financial results for the third quarter and nine months ended September 30, 2012.
Revenue for the nine months ended September 30, 2012 increased to $145,770 versus $102,555 in the same period a year earlier. Revenues for the three months ended September 30, 2012 increased to $75,667 from $48,693 for the same period a year earlier.
Net loss for the third quarter of 2012 was $6,222,618 or ($0.01) per diluted share versus a loss of ($420,925) or ($0.00) for the third quarter of 2011. Net loss for the first nine months of 2012 was $8,019,633 or ($0.01) per diluted share, versus a net loss of $4,614,482 or ($0.01) per diluted share for the comparable period in 2011. Losses were mainly attributed to the difference in trading value booked on stock based compensation issued at a discount.
Shareholders' Equity made an impressive 300% reversal to the upside, from a negative of ($463,785) at December 31, 2011, to a positive Shareholders' Equity of $$928,075 at September 30, 2012.
Other Financial Highlights:
Total Assets increased to $3.898 million, an increase of 111% at September 30, 2012, from $1.844 million at December 31, 2011.
Additional Paid In Capital rose to $15.997 million, an increase of 83% at September 30, 2012, from $8.731 million at December 31, 2011.
Total Stockholders' Equity increased 300% to a positive $928,075 at September 30, 2012, from the Company's negative net worth of $400,813 at December 31, 2011.
Proved Producing Oil Reserves increased 1,712% to $1.912 million at September 30, 2012 from $105,494 at December 31, 2011.
Operational and Other Highlights:
In Texas the Company has secured a funding commitment of $2,100,000 to drill an additional 20 wells once the McComas -A- 20 well is placed into production. We expect to be in full production, as well as have BOPD results in the next 2 weeks. We are in the process of permitting at least 2 additional wells on the McComas lease and will begin drilling immediately once permits are approved. We estimate that we will be able to place the additional 2 wells into production during the first quarter of 2013.
We plan to commence the drilling of the first 2 shallow Wooldridge wells, which are already permitted, the week of December 1st, 2012. Once the first two wells are placed into production the remaining financing will be available and we will begin the process of permitting and drilling the remaining 10 wells in the project. We expect this project to be fully completed in early 2013, and add an estimated 100 BOPD in production.
We have already chosen our location on our 81 acre Elora farm out next to the Sabine river. Once the survey and permit are completed we will start (that should take about 2 weeks). This drill will be approximately 3500 feet. It will also be a horizontal drilling into the Fredricksburg zone. There was a well drilled there in 2007. That well owner only had the rights below 5000ft. They wire lined the entire well and we now have those logs in our possession and will drill where the existing pad is. This will allow us to avoid the pad setup expense. Also having 50k worth of logs should allow us to navigate into the zone with success. If we have a successful oil well (our goal) we will drill again from this pad into the Saratoga zone.
The San Juan #1 and #2 wells have been drilled to total depths of 2240 ft. and 1293 ft. Completion Operations are currently underway and once finalized the wells will be flow tested and placed on production. Treaty is in the process of permitting two additional wells in the Stann Creek area, one of these wells is scheduled to be drilled in the fourth quarter with the second well to follow in the first quarter. Lessons learned on the #1 and #2 wells should allow Treaty to drill and complete these next two wells more efficiently.
The third quarter of 2012 was very challenging for the company and we had many hurdles to overcome before we were able to refocus on development and redevelopment of our existing properties. Our efforts are beginning to pay off as we are starting to see a steady sustainable growth rate in our work over projects. We acknowledge that Treaty has fallen behind in our projections from a year ago, but believe we have taken the necessary steps that will enable us to meet those original goals for 2013.
A complete copy of the Form 10Q can be viewed at the following link:
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