Treaty Energy Corporation has secured the assignment of two additional leases from U.S. Fuels, Inc. of Breckenridge, Texas. After successfully drilling and completing the first two leases assigned from U.S. Fuels on the Mitchell lease, U.S. Fuels will now assign two additional leases to Treaty Energy. The two additional leases are located on a 20 acre track on the Murl Unit (which is also known as the Stroebel lease) and a 20 acre track on the Stockton Lease. The Stockton lease is independent of the LOI signed between the two companies.

The Murl Unit has a gas well that is currently producing 80 mcf a day and some high gravity oil (54 API). Initially drilled in 1994, the Murl Unit received an initial production flowing (IPF) rate of 1,730 mcf per day (CAOF 6,500 MCFD). 3-D seismic data acquired by Treaty shows this particular field holds high ROI potential. This seismic data has already prompted Enserch to invest over one million dollars into a pipeline to service this well and any other potential wells on the lease.

The original drilling operator of the Murl Unit had a gas company come out to test the lease. The gas company failed to follow proper procedures and significantly damaged the well in the process, creating a water cone formation. Following the damage, the well was shut in and a second well was not pursued. U.S. Fuels acquired the well, set a bridge plug over the zone and shot a small 1ft streamer into the well, restoring it to production status. The reworked Murl Unit initially pulled 350 mcf per day and now produces approximately 80 mcf per day, 19 years later with no additional treatment. Treaty Energy plans to drill a new offset well down to an approximate depth of 4,000ft. to re-enter the same zone which had a recorded IPF rate of 1,730 mcf per day (CAOF 6,500 MCFD).

The 1994 completion report, along with some of the available seismic data, can be found on Treaty Energy's website located at: http://www.treatyenergy.com/sites/default/fil...mation.pdf. The Company also provides two introductory videos to the Murl lease on the Treaty's media page: http://www.treatyenergy.com/media.

In addition to the Murl Unit, Treaty Energy will drill an offset well from the Mitchell #4 well on the Stockton lease. The Stockton lease is the lease adjacent to the Mitchell lease. Treaty Energy believes that this offset drilling project will be as successful as the Mitchell #4 well, which has produced approximately 800 barrels of oil since it was drilled on June 6, 2013. As announced on June 17, 2013, the Mitchell #4 well is producing 45-50 BOPD.