NEW ORLEANS, July 18, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), a rapidly growing international energy company, today announced results of the final results of the Well Certification Test of the Madeley F1H well that Treaty has purchased and is putting into production.
The results of the 2nd 24-Hour Certification Test as submitted to the Texas RRC indicate that the Madeley F 1H well came in at 192 BOPD of sweet Texas crude and 822 MCF per day of natural gas. The natural gas, now having been "Certified" is in process of being connected to a conveniently located Pipeline and the gas will be sold into the market at a price of roughly $2.80 per MCF.
Treaty expects its revenue from the sale of the gas, at 822 MCF level of production, will be about $1,725 per day, or $51,750 per month, net after royalties.
Treaty is expecting its revenue from the sale of oil from this well, at 192 BOPD level of production, will be about $14,616 per day, or $438,000 per month, net after royalties.
The Madeley F 1H lateral, which is now drilled only 16 ft, gets drilled out to 1,000 ft or more. Oil and gas production from this well will likely rise significantly.
Andrew V. Reid, Chairman of Treaty Energy Corporation, stated, "As indicated in an earlier release, we intend to re-complete this well by drilling a much longer lateral into the Fredricksburg Zone that currently is drilled to only 16 ft. Treaty will eventually drill this lateral to a length of 1000 ft or possibly to a maximum of 1770 ft. We anticipate the oil and gas production rates to increase significantly upon the extension of the lateral."
To view the results of the final "24-Hour Certification Test" on this Madeley F 1H well, go to this link http://www.treatyenergy.com/files/madeleyf12.pdf to observe the report as submitted to the RRC posted to Treaty's website. You will see that for the 24 Hour Test of the well produced 192 barrels of oil and 822 MCF of gas per day.
Mr. Reid added, "While Treaty has about fifty four (54) wells schedule to be drilled on its Texas leases, we are very pleased with the initial revenues that will be coming into the Company from the Madeley F 1H well. With initial revenues of about $438,000 per month from oil and another $51,750 expected from natural gas sales from this one well alone, Treaty is projecting that its 3rd quarter results will show us having turned the corner to profitable operations."
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.
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