Treaty Energy Corporation Newsletter for the Week
Post# of 39368
Posted On: 09/09/2013 2:00:55 PM
Treaty Energy Corporation Newsletter for the Week of September 9, 2013
This newsletter is for the week of September 9, 2013 and contains information current Company operations as of September 9, 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 Information contained in this newsletter may be outdated at the time of release.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 .
Information for Shareholders on the September 3, 2013 Newsletter:
We apologize for the lack of communication from the Company on September 3, 2013. On Tuesday, September 2, 2013, at around 3pm, several of our email and social media accounts were accessed from an unknown location in Louisiana that was not affiliated with the Company.
In order to identify the breach, the Company voluntarily blocked access to accounts that were affected. Luckily, the breach was identified and no information was lost or accessed as part of the automatic protocols we put in place.
Unfortunately, one account that was affected was the Treaty Energy Investor Relations email account. By restricting access to this email (and associated social media accounts), the Company was unable to effectively submit information to shareholders.
This was by no means intentional and was not an attempt to restrict communication to our shareholders. Email/Account access took approximately 24 hours to be restored and came back online at around 2:45pm on Wednesday afternoon. As soon as the account was restored, the Company posted an update on its Facebook page on the situation.
With account access preventing us from sending out a newsletter until Thursday morning (several newsletter edits were locked up in the accounts), the Company chose to hold off on publishing a newsletter until the following week (September 9, 2013). With the publication of this newsletter, the Company has made good on its promise to publish current and up to date information.
Publication of last week’s newsletter would have resulted in confusion as some events had already occurred and information on certain details solidified at the time of the original newsletter publication date, all of which would have required further edits and rewrites, likely pushing publication to Thursday afternoon, defeating the purpose of a weekly newsletter.
The Company sincerely apologizes for the momentary lapse in communication. The Company ask that shareholders please understand that as a small Company we are making every attempt to better communicate with all shareholders, however events do occur beyond our control that may disrupt communication. We will continue to update shareholders immediately on our social media pages should a major event occur that requires quick and immediate responses.
The company will continue to make timely announcements regarding the progression of all projects as relevant information is obtained. Management, and the Company as a whole, feels as though our investments in the current projects are economically sound and will continue to benefit the shareholders of Treaty Energy. Current projects in Texas should be accretive to our 4th quarter revenue figures.
West Texas (C&C Petroleum Management, LLC):
Mitchell #1
After removing the Mitchell #1 from severance and hooking the well up to the tanks, it was discovered that the well still had an abundance of sand at the top of the wellhead as a result of the fracking operation. The Company has requested a crew come and clean the well, which the Company has been waiting on for several days. The pulling rig is currently tied to another job, but is scheduled for Thursday, September 12, 2013. The Company will inform shareholders as soon as the rig arrives on scene to perform the operation.
Mitchell #3 & #4
Contrary to reports and speculation, the Mitchell #3 and #4 are still producing oil. Total production for the month of August was approximately 950 barrels of oil. Several shareholders may view this number as concerning, however the Company has noted that all well production schedules will decline over time and are a normal part of every oil and gas investment. These numbers are still well within the Company’s profitability range.
The Company is also aware that production reports for the Mitchell leases have not been filed. We have contacted several parties and have found that all necessary paperwork was completed and filed approximately 3 weeks ago. Due to the way that leases are required to be configured and the position of the Mitchell #3 and #4 the Mitchell lease had to be split into three leases, which may take up to 8 weeks to process at the agency. The Mitchell leases will be listed under TNC as the operator and will be listed as “Mitchell A3” and “Mitchell B4.”
Stockton #1
As announced on August 28, 2013, the Company plans to re-perforate and acidize the newly acquired Stockton #1 well. The Company plans to complete this perforation operation before the end of the month. The well is currently producing a small amount of oil for the Company (1-2 barrels of oil per day) and has approximately 7’ of oil in its tanks.
Stockton #2 & #3
On August 28, 2013, the Company stated that it would be waiting until the Stockton #1 re-perforation was completed to begin drilling on the Stockton #2 & #3. Based on confident geology and proximity to the Mitchell #4, the Company has decided to move forward with drilling plans on the two Stockton wells. The Company will be using the services of a local drilling contractor and expects to have an expedited drilling contract finalized this week to begin drilling as soon as possible.
The Company will not be partnered with any other Companies in the drilling of these wells. As a result, the Company will yield a 75% net revenue interest and a 100% working interest in the operation of these wells. Production is expected to be similar to the Mitchell #4 and will yield approximately two times the amount of revenue for the Company as compared to the producing Mitchell wells.
The Company is already in communications with a prep-site crew and is in the process of acquiring the surface casing. The site must be prepped and the surface casing must be on-site before drilling can occur. Once the contract is finalized and secured, the Company will make a formal announcement regarding drilling dates.
East Texas (C&C Petroleum Management, LLC):
Lakeshore
The Company brought in an expert to look at the Lakeshore well and evaluate its production schedules. This was done to determine if production could be increased on the well. Based on the recommendation, the Company slightly adjusted the pumping schedule of the well which in turn has increased increase production on the Lakeshore slightly.
The Lakeshore well is currently producing approximately 3-4 barrels of oil per day, and total production on the Lakeshore well for the month of August was approximately 100 barrels. Total production in September has been approximately 30 barrels.
Overall East Texas Operations Update
Last week, the Company received several phone calls from concerned investors regarding information that they found on online forums regarding the Company’s East Texas operations. Again, the Company stresses that information found on these forums are typically subject to manipulation and cherry picking.
The information found on these forums showed sale documents to a third party on all East Texas assets. These documents were from August of 2012 and were used in a leveraged sale that had no effect on operations. Shortly after, the Company regained its NRI on all Texas leases.
The Company maintains a 70% NRI interest on all East Texas leases (Lakeshore, Madeley and Hill). The Company does its best to correct falsely displayed information, however individual shareholders need to be constantly skeptical of information found on these boards.
After the completion of the Stockton, Mitchell and Standard lease projects in West Texas, the Company will be returning to East Texas as part of the Company’s overall Texas strategy. The Company believes that the Madeley and Lakeshore lease hold great potential as consistent producers and will bring in a new team to repair the wells to full production potential.
Belize (Treaty Belize Energy, Ltd):
San Juan #3
For the last three weeks Treaty Belize Energy, Ltd. (TBE) has been performing well completion operations and is still on going. TBE engineers consulted with BNE and found that San Juan #3 shares similar structures to that of the first BNE well found in the northern regions of Belize. Originally, TBE was notified by the government of Belize that there had never been any water found in the Colban region. However, this information was not accurate as the first BNE well experienced the same concerns as SJ#3.
TBE perforated the well two weeks ago and performed swabbing activities. However, using the BNE knowledge, TBE has decided to perforate the area a second time in order to further open the fracture to increase possible production potential. In order to do so, the packer had to be removed from the well bore. However, due the pressure in the well, the packer remained in place. To remove it, a specialty collar is needed. TBE has requested and ordered a new drilling collar to Belize. The collar is currently en route.
The Company had a voluntary completion date set at August 31, 2013, which it revised last week. Many shareholders thought that this date meant that we would know officially regarding the success or failure of the well on this date, which was an incorrect interpretation of the situation. The well would still require the support of the Government of Belize on it before a commercial find can be determined. The Company has informed the Government that it did not meet the voluntary date due to the re-perforation efforts and is awaiting the specialty collar to arrive in Belize before adjusting its completion deadline.
Statements on Total Production:
The Company has three currently producing wells. While a small amount, these three wells are producing more than 45+ wells in 2012 and the first/second quarters of 2013. The company will introduce new wells within the month and production will likely receive a boost within the months of September and October based on new drilling and work over activities within that time frame. Operations will likely increase total wells in production to about 10, which will bring total company production to the highest levels in history, despite being less in quantity.
The Company will be producing a general overall Texas operations strategy next week, which will demonstrate the Company’s operations changes and plans for the future.
Information for Shareholders on the September 3, 2013 Newsletter:
We apologize for the lack of communication from the Company on September 3, 2013. On Tuesday, September 2, 2013, at around 3pm, several of our email and social media accounts were accessed from an unknown location in Louisiana that was not affiliated with the Company.
In order to identify the breach, the Company voluntarily blocked access to accounts that were affected. Luckily, the breach was identified and no information was lost or accessed as part of the automatic protocols we put in place.
Unfortunately, one account that was affected was the Treaty Energy Investor Relations email account. By restricting access to this email (and associated social media accounts), the Company was unable to effectively submit information to shareholders.
This was by no means intentional and was not an attempt to restrict communication to our shareholders. Email/Account access took approximately 24 hours to be restored and came back online at around 2:45pm on Wednesday afternoon. As soon as the account was restored, the Company posted an update on its Facebook page on the situation.
With account access preventing us from sending out a newsletter until Thursday morning (several newsletter edits were locked up in the accounts), the Company chose to hold off on publishing a newsletter until the following week (September 9, 2013). With the publication of this newsletter, the Company has made good on its promise to publish current and up to date information.
Publication of last week’s newsletter would have resulted in confusion as some events had already occurred and information on certain details solidified at the time of the original newsletter publication date, all of which would have required further edits and rewrites, likely pushing publication to Thursday afternoon, defeating the purpose of a weekly newsletter.
The Company sincerely apologizes for the momentary lapse in communication. The Company ask that shareholders please understand that as a small Company we are making every attempt to better communicate with all shareholders, however events do occur beyond our control that may disrupt communication. We will continue to update shareholders immediately on our social media pages should a major event occur that requires quick and immediate responses.
The company will continue to make timely announcements regarding the progression of all projects as relevant information is obtained. Management, and the Company as a whole, feels as though our investments in the current projects are economically sound and will continue to benefit the shareholders of Treaty Energy. Current projects in Texas should be accretive to our 4th quarter revenue figures.
West Texas (C&C Petroleum Management, LLC):
Mitchell #1
After removing the Mitchell #1 from severance and hooking the well up to the tanks, it was discovered that the well still had an abundance of sand at the top of the wellhead as a result of the fracking operation. The Company has requested a crew come and clean the well, which the Company has been waiting on for several days. The pulling rig is currently tied to another job, but is scheduled for Thursday, September 12, 2013. The Company will inform shareholders as soon as the rig arrives on scene to perform the operation.
Mitchell #3 & #4
Contrary to reports and speculation, the Mitchell #3 and #4 are still producing oil. Total production for the month of August was approximately 950 barrels of oil. Several shareholders may view this number as concerning, however the Company has noted that all well production schedules will decline over time and are a normal part of every oil and gas investment. These numbers are still well within the Company’s profitability range.
The Company is also aware that production reports for the Mitchell leases have not been filed. We have contacted several parties and have found that all necessary paperwork was completed and filed approximately 3 weeks ago. Due to the way that leases are required to be configured and the position of the Mitchell #3 and #4 the Mitchell lease had to be split into three leases, which may take up to 8 weeks to process at the agency. The Mitchell leases will be listed under TNC as the operator and will be listed as “Mitchell A3” and “Mitchell B4.”
Stockton #1
As announced on August 28, 2013, the Company plans to re-perforate and acidize the newly acquired Stockton #1 well. The Company plans to complete this perforation operation before the end of the month. The well is currently producing a small amount of oil for the Company (1-2 barrels of oil per day) and has approximately 7’ of oil in its tanks.
Stockton #2 & #3
On August 28, 2013, the Company stated that it would be waiting until the Stockton #1 re-perforation was completed to begin drilling on the Stockton #2 & #3. Based on confident geology and proximity to the Mitchell #4, the Company has decided to move forward with drilling plans on the two Stockton wells. The Company will be using the services of a local drilling contractor and expects to have an expedited drilling contract finalized this week to begin drilling as soon as possible.
The Company will not be partnered with any other Companies in the drilling of these wells. As a result, the Company will yield a 75% net revenue interest and a 100% working interest in the operation of these wells. Production is expected to be similar to the Mitchell #4 and will yield approximately two times the amount of revenue for the Company as compared to the producing Mitchell wells.
The Company is already in communications with a prep-site crew and is in the process of acquiring the surface casing. The site must be prepped and the surface casing must be on-site before drilling can occur. Once the contract is finalized and secured, the Company will make a formal announcement regarding drilling dates.
East Texas (C&C Petroleum Management, LLC):
Lakeshore
The Company brought in an expert to look at the Lakeshore well and evaluate its production schedules. This was done to determine if production could be increased on the well. Based on the recommendation, the Company slightly adjusted the pumping schedule of the well which in turn has increased increase production on the Lakeshore slightly.
The Lakeshore well is currently producing approximately 3-4 barrels of oil per day, and total production on the Lakeshore well for the month of August was approximately 100 barrels. Total production in September has been approximately 30 barrels.
Overall East Texas Operations Update
Last week, the Company received several phone calls from concerned investors regarding information that they found on online forums regarding the Company’s East Texas operations. Again, the Company stresses that information found on these forums are typically subject to manipulation and cherry picking.
The information found on these forums showed sale documents to a third party on all East Texas assets. These documents were from August of 2012 and were used in a leveraged sale that had no effect on operations. Shortly after, the Company regained its NRI on all Texas leases.
The Company maintains a 70% NRI interest on all East Texas leases (Lakeshore, Madeley and Hill). The Company does its best to correct falsely displayed information, however individual shareholders need to be constantly skeptical of information found on these boards.
After the completion of the Stockton, Mitchell and Standard lease projects in West Texas, the Company will be returning to East Texas as part of the Company’s overall Texas strategy. The Company believes that the Madeley and Lakeshore lease hold great potential as consistent producers and will bring in a new team to repair the wells to full production potential.
Belize (Treaty Belize Energy, Ltd):
San Juan #3
For the last three weeks Treaty Belize Energy, Ltd. (TBE) has been performing well completion operations and is still on going. TBE engineers consulted with BNE and found that San Juan #3 shares similar structures to that of the first BNE well found in the northern regions of Belize. Originally, TBE was notified by the government of Belize that there had never been any water found in the Colban region. However, this information was not accurate as the first BNE well experienced the same concerns as SJ#3.
TBE perforated the well two weeks ago and performed swabbing activities. However, using the BNE knowledge, TBE has decided to perforate the area a second time in order to further open the fracture to increase possible production potential. In order to do so, the packer had to be removed from the well bore. However, due the pressure in the well, the packer remained in place. To remove it, a specialty collar is needed. TBE has requested and ordered a new drilling collar to Belize. The collar is currently en route.
The Company had a voluntary completion date set at August 31, 2013, which it revised last week. Many shareholders thought that this date meant that we would know officially regarding the success or failure of the well on this date, which was an incorrect interpretation of the situation. The well would still require the support of the Government of Belize on it before a commercial find can be determined. The Company has informed the Government that it did not meet the voluntary date due to the re-perforation efforts and is awaiting the specialty collar to arrive in Belize before adjusting its completion deadline.
Statements on Total Production:
The Company has three currently producing wells. While a small amount, these three wells are producing more than 45+ wells in 2012 and the first/second quarters of 2013. The company will introduce new wells within the month and production will likely receive a boost within the months of September and October based on new drilling and work over activities within that time frame. Operations will likely increase total wells in production to about 10, which will bring total company production to the highest levels in history, despite being less in quantity.
The Company will be producing a general overall Texas operations strategy next week, which will demonstrate the Company’s operations changes and plans for the future.
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.
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