Strategy and Future Operations in Belize Treaty E

Strategy and Future Operations in Belize

Treaty Energy Corporation’s area of primary interest is the Belize Basin located within the Sierra Madre de Chiapas Foldbelt-Peten Basin. Treaty Energy Corporation has selected this region for three reasons:

1. Treaty Energy Corporation and Princess Petroleum’s concession in the northern region is a primarily off shore region, Treaty Energy Corporation is currently looking at potential partners to work with to conduct off-shore operations, but is currently outside TECO's area of expertise.


2. While unconfirmed in Belize, the Sierra Madre de Chiapas Foldbelt-Peten Basin is a known producing region in Guatemala. Treaty Energy Corporation has been following oil operations in Guatemala and believes that strategies employed by companies in Guatemala operating near the border of Belize will have a higher probably of success rather than on the northern concession.


3. Data regarding the region is more readily available and historical records show signs of high potential oil reserves in the southern region of Belize (e.g. documented cases of seepages).

Treaty Energy Corporation has developed a strategy for the short term in Belize. The goal of this strategy is to acquire enough geological and geophysical data to be able to correctly design and develop a successful drilling program for the remainder of the concession period. This data will set the stage for full production drilling, facilities installation, development of crude oil, gas storage and distribution systems. Treaty Energy Corporation intends to drill San Juan #3 by Q1 2013 and complete the drill in early Q2 2013 to compliment the data obtained from San Juan #1 and #2.

Depending upon the results of San Juan #3, Treaty Energy Corporation is committed to drilling 2 additional wells in Q2 and Q3 of 2013. These wells will be located in the San Juan district or in the Toledo district of Belize. Treaty Energy Corporation expects to be able to develop facilities by the end of year in 2013 that will sustain Oil and Gas production in Belize for the long term.