NEW ORLEANS, Sept. 30, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced that the Company has commenced full drilling operations on the Stockton Lease in Tuscola, Texas.
On September 27, 2013, at around 6:10pm CDT, the drilling rig spudded in on the Stockton #2 well. The Company is employing a local drilling contractor to perform the operation. The Stockton #2 well will be drilled to the Gardner Limestone pay-zone located at an approximate depth of 4800ft. The well is considered an off-set well to the Company's successful Mitchell #4 well.
Currently, the Stockton #2 drill is at approximately 2000ft. and is drilling 24 hours a day. Due to proximity and same field geology, initial production numbers and estimated production rates are expected to be similar to the Mitchell #4 well, which received an initial production rate of 61 barrels of oil per day (BOPD) and an announced production rate of 45-50 BOPD.
After completion of the Stockton #2 well, the drilling rig will immediately move over to the Stockton #3 site to begin drilling operations there. The target pay-zone for the Stockton #3 is also the Gardner Limestone and is expected to have a total depth of 4800ft.
Drilling on the Stockton lease comes at an opportune time with the price of WTI Crude nearing all-time highs at over $100.00 a barrel. Initial production surges will guarantee larger profits for the Company due to this unexpected market development.
The Stockton lease project was entirely self-funded and the Company sought no additional partners on the project. As a result, the Company maintains its full 75% net revenue interest (NRI) and a 100% working interest (W/I) on the well.
The Stockton lease project is part of the Company's business strategy to develop an oil field in Tuscola, Texas. To date, the Company has drilled two new wells and worked over one existing well and is solidifying plans to work over and re-perforate the Stockton #1 well into the Gardner Limestone pay-zone to match the newly drilled Mitchell and Stockton wells.
Andrew Reid, Chief Executive Officer of Treaty Energy, stated, "The Company is thrilled to begin drilling on the Stockton lease after three months of planning and development. By opting to self-fund this well, the Company is expected to dramatically increase revenues in a very short period of time especially with oil at a high price. If the drilling is successful, the Company may choose to further develop and drill in the Tuscola area."
Bruce Gwyn, Chief Operating Officer of Treaty Energy, stated, "The Company is making tremendous progress in increasing oil and gas production. Management earlier this year stated that the primary goal of the Company was to revamp Texas operations and increase production. Revenue from production is at an all-time high in Company history and is only going to get higher. The Company has begun the permitting process to drill two additional wells in the area and will continue to support the Tuscola drilling program, so long as the Company continues to receive positive results in the area."
Shareholders can continue to monitor the Stockton project as it develops through the Company's social media channels, newsletter or website.
History of the Stockton Lease Project
On June 28, 2013, Treaty Energy acquired a working interest on the Stockton lease from U.S. Fuels, Inc. of Breckenridge, Texas. This working interest included a 75% net revenue interest (NRI) and a 100% working interest (W/I). The remaining 25% NRI is dedicated to existing overriding royalty interests (ORRI).
On July 17, 2013, the Company announced it had completed survey work and was solidifying plans to drill two offset wells from the Mitchell lease on the Stockton lease. Requests for drilling permits were filed approximately two weeks after survey work was completed. The Company received permitted approval to drill the two wells on August 6, 2013 from the Texas Railroad Commission (TRRC).
The Company finalized and signed contracts on September 11, 2013 to begin drilling the two planned wells on the Stockton lease. As previously announced, the Company has sought no partners on the project and will be completely self-funded. The Company's self-funding grants 100% of the 75% NRI as revenue for the Company.
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