Treaty Energy Corporation Newsletter for the Week
Post# of 39368
Posted On: 08/26/2013 4:00:43 PM
Treaty Energy Corporation Newsletter for the Week of August 26, 2013
Over the last eight months, Treaty Energy Corporation (OTC: TECO) has made great strides in improving operations in Texas and in Belize. In order to improve shareholder confidence and to increase transparency, the Company will begin issuing weekly newsletter updates on all oil and gas operations.
This newsletter is for the week of August 26, 2013 and contains information current as of August 23, 2013. Information contained in this newsletter may be outdated at the time of release.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 .
Mitchell Lease (Texas):
Mitchell #1
On August 23, 2013 the Mitchell #1 was taken off of severance by the Railroad Commission of Texas (TRRC). The severance removal allows for the Company to remove any oil from the tanks and reconnect the well to the tank battery to begin production on the well again.
In late July 2013, the Mitchell #1 was put on severance by the TRRC shortly after the Company acquired a 50% working interest (W/I) and a 38.5% net revenue interest (NRI) and completed a re-fracking operation on the well. The reason for the severance was a violation of statewide rule number 8. Statewide rule number 8 is an oil spillage clean up rule.
As explained by Mr. Jakobot on August 4, 2013, this issue was not a Mitchell lease issue, but rather an issue with the Stockton lease’s separators leaking oil. The Stockton’s separators are located on the Mitchell lease, which resulted in the severance to be placed on the Mitchell. Due to legal reasons, the Company was unable to clean up the Stockton lease. Once the severance was placed on the Mitchell lease, the Company stepped forward to correct the issue with a cleanup and repair crew on site by August 5, 2013.
A TRRC field inspector arrived on site on August 14, 2013 and cleared the severance unofficially. The TRRC took eight days to process the field inspectors report and one day to process payment to remove the severance. In addition, the Company had to wait one day for an oil pick up to clear the tank so as to begin the new NRI schedules.
The failure of the Stockton lease’s field supervisor to correct and repair the separator was the reason for the severance. As the Company formally announced on August 16, 2013, plans have been set in motion to acquire the Stockton #1, which includes the tank battery and separators, so as to mitigate any future concerns on this matter.
U.S. Fuels and the Company believe that a pump change will be required before pumping can begin. The Company believes that some sand has re-entered the well after the refracking. A pump change is scheduled for Thursday, August 29, 2013.
Mitchell #3 & #4 – Question of the Week
Contrary to speculation and rumors, the Mitchell #3 and #4 are still producing daily. This statement was acknowledged in last week’s newsletter and this week’s newsletter. Several shareholders have emailed/called the investor relations team with concerns found on several internet forums regarding production on these wells. Shareholders should rest easy knowing that the Mitchell #3 and #4 wells still have a high daily production and are continuing to bring in revenue for the company.
The Company is currently working with TNC to get the Mitchell #3 & #4 reported on the TRRC website.
TRRC Issues and Resolutions (C&C Petroleum Management, LLC):
As part of the Company’s recent asset sell off announcement, most, if not all outstanding TRRC issues will be resolved through this transaction.
There are two leases with outstanding TRRC issues (that will remain part of the Company’s inventory), the P.H. Barnes and the Madeley. The Madeley requires a pit to be filled in and the P.H. Barnes is still requires two W3A forms to be completed before the final wells can be plugged. The Company has made arrangements to complete and end all outstanding TRRC issues that are still listed under C&C Petroleum Management. As pointed out in prior newsletters, once the P.H. Barnes is plugged and the TNR flag is lifted, the Company will create a TRRC issue page for all future outstanding issues.
The McComas lease, which is part of the Heritage Oil and Gas transaction, has some remaining outstanding issues, but will be resolved on the purchaser’s end of the deal.
San Juan #3 (Treaty Belize Energy, Ltd):
Treaty Belize Energy, Ltd. is meeting with officials in Belize this week to discuss the status of San Juan #3. The company is still expected to announce something by early next week on San Juan #3, but that announcement is contingent upon the results of the meeting. Until then, the Company would like to restate that an official status on the commercial validity of SJ#3 has not been announced by either party.
Stockton Lease (Texas):
As previously stated, the Company is in the process of acquiring the Stockton #1 lease. As of Monday, August 26, 2013, the Company has paid approximately $42,000 and is scheduled to pay the remaining balance on the well by the end of this week. Once fully purchased, the Company will be releasing a general operating packet that will contain the Company’s plan of operations over the next 6-12 months.
Contact:
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-754-6927
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.
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-754-6927
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.
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