Treaty Energy Corporation Announces the Final Acquisition of the Stockton #1 Well in Tuscola, Texas
Treaty Energy Purchases the Stockton #1 Well for $75,000 and Announces Plans to Reperforate and Rework the Well
NEW ORLEANS, Aug. 28, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced that the Company has completed the acquisition of the Stockton #1 well (RRC ID: 28016) in Tuscola, Texas. The well will undergo reperforation and reworks to increase production for the Company.
As part of the Company's on-going oil and gas development strategy in Tuscola, Texas, the Company has acquired a 75% net revenue interest (NRI) and a 100% working interest (W/I) on the Stockton #1 well. The final purchase price of the Stockton #1 was $75,000 and includes the existing tank battery and oil/water separators. The well will be operated by U.S. Fuels of Breckenridge, Texas.
Stockton #1 was drilled on October 26, 1996 and was originally perforated in the gray sandstone at a depth of 4260'. After research, the Company discovered that the well was not perforated at any other depths despite positive shows in the wellbore. Due to the well being only perforated in one region, this is classified as both a marginal well and as a well with undeveloped production potential.
The Company intends on perforating the well to the Gardner Limestone region, at roughly the same depth(s) as the Mitchell #3 & #4. The current plan of operation is to use 2,000-3,500 gallons of NEFE acid in both the new and old perforation zones. To further increase possible production, the Company may sand fracture both areas and chase the well with KCL water depending on the results of the acidization process.
The Stockton #1 acquisition will provide three pieces of critical value to the Company:
- Reperforation of the Stockton #1 will provide valuable insight into the size of the oil field on the Stockton and Standard leases; to insure future drilling investments on the planned Stockton #2 and #3 are as conservative and as cost effective as possible.
- The purchase of the tanks and separators will reduce the overall project costs on the Stockton #2 and #3, which are planned and permitted to be drilled.
- The well is expected to bring in additional revenue and produce a return on investment in three to four months, minus cost savings on the future Stockton #2 and #3.
In support of this acquisition, the Company intends on releasing a large operational strategy packet for investors within the next two weeks. In this packet, the Company will outline its Texas strategy and plan of operations for investors.
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
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