Treaty Energy Corporation Announces Acquisition and Successful Work Over of the Mitchell #1 Well in Tuscola, Texas Successful Work Over Expands Production to Three Wells on the Mitchell Lease Following Acquisition of Working Interest Assignment from US Fuels of Breckenridge, Texas
NEW ORLEANS, July 31, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced that it has recently been assigned a 38.5% net revenue interest (NRI) with a 50% working interest (W/I) on the existing Mitchell #1 well in Tuscola, Texas from U.S. Fuels of Breckenridge, Texas. The Company successfully completed a work over the same day in order to immediately increase the Company's production and revenue.
On July 28, 2013 the Company received notification that a work over rig had arrived to complete work on the long awaited Standard #2 well in Tuscola, Texas. After discussions with management, landowners and field operations, the decision was made to defer operations on the Standard lease temporarily to acquire a larger and more favorable working interest on the Mitchell #1 well.
The Mitchell #1 well, which is located 813' from the Mitchell #3, received an initial production rate of 160 barrels of oil per day (BOPD) and produced a small amount of gas. While the Company plans to reduce its reliance on marginal wells, the Mitchell #1 has been a consistent producer for over 15 years, making the well a worthwhile investment given the current production levels of the Mitchell #3 and #4. The company has provided the original completion report on its website, located at http://www.treatyenergy.com/sites/default/files/Mitchell1CompletionReport.pdf.
In line with internal policies, the Company will announce stable production rates one to two weeks after initial production surges have stabilized.
The fracking operation used 7000 PSI of sand with a 2% hydrochloric acid mixture. Video of the fracking operation may be found on the Company's website located at http://www.treatyenergy.com/media/mitchell-1-fracking-operation or on the Company's official YouTube page located at http://youtu.be/Dy48s7nBSIA.
This action was taken to increase revenues for the Company immediately and to gather more data about the area. The Company plans to revisit the Standard #2 well at a later date once it evaluates the production data retrieved from the work over of the Mitchell #1. The acquisition of the Mitchell #1 brings the total amount of wells that the Company has a working interest in to 3 producing wells on the Mitchell lease (#1, #3 and #4).
Additional Updates for Shareholders and Potential Investors
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Treaty Energy Corporation
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.
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.
SOURCE Treaty Energy Corporation