NEW ORLEANS, March 11, 2014 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced it has retained Inspire Energy Services (www.inspireenergyservices.com) effective March 10, 2014 to conduct a full review of the Company's oil and gas operations and assets to further develop and enhance the Company's on-going oil and gas strategy.
Inspire is a group of petroleum engineers and business development experts who advise small public and private companies seeking investment in operated and non-operated oil and gas exploration. The consultants review reserves and recommend reserve value, property acquisition and financing strategy as well as direct operational efficiency. Inspire Energy Services advocates to management framing in reasonable stock price targets and works to disseminate that information through the management to the Company's current and potential investors.
In early March, Inspire representatives conducted an initial review of the Company's assets and recommended a test through March 9th of the Gray Sand on the Stockton #2 well. The Company, in conjunction with the recommendations from Inspire, installed a new pump jack on the Stockton #2 well. The Gray Sand zone produced signs of oil production; however Inspire believes that based on geological data that the upper zone in the Gardner Limestone will yield greater production potential. The Stockton #2 well yielded promising returns on its initial test.
The petroleum engineer and spokesman for Inspire evaluating Treaty Energy's assets with Inspire informs, "It is important to spend a reasonable amount of time doing longer less time-sensitive production tests before making long-term investment plans. Direct off-set wells to the Stockton #2 well have been consistent producers at fairly low water cuts. The Mitchell #3 and #4, located on the lease next door, were evidence of this consistent high-yield production." The Stockton #3, which was drilled immediately after the Stockton #2, remains uncompleted.
Inspire's spokesman continued with, "The production tests that we are conducting on the Stockton #2 will be used to develop completion plans for the Stockton #3. In addition, the information on the Stockton #2 and Mitchell lease, which was previously drilled by Treaty, will provide us the ability to develop a large scale drilling and completion strategy on the Kubacak lease, which is being looked at as a large scale investment project."
On the subject of Treaty Energy, Inspire's spokesman further commented that, "Inspire believes that Treaty Energy has not always had the benefit of a thorough engineering assessment of their field operations. Recent operations have been successful based on prior geological data. However, with the new drills on the Stockton and Kubacak leases, a thorough reservoir and production study needs to be done. Inspire intends to ensure that the dollars spent in the field yield the highest return per investment dollar and, more importantly, maximize oil and gas production."
In addition to the completions scheduled for the current lease holds in the oil leases in Taylor County Texas, Inspire has recommended reviewing additional acreage acquisitions in the Abilene area. Inspire has already begun to evaluate new projects beyond the Kubacak lease for the Company.
Inspire has also done a preliminary evaluation of the Company's Belize Operations and believes that there may be significant possibility of success in that area. The Company's Belize operations have been on hold since November of 2013 after it was unable to successfully retrieve a stuck packer from its San Juan #3 well. The Company has remained in negotiations with Princess Petroleum since then and has not committed to a full pull out of operations in the region. Inspire believes that with increased investment dollars in the region, a large multi-rig drilling project is very possible, but would require a complete restructuring and renegotiation of the project from both Treaty Belize Energy, LTD and Princess Petroleum. Nevertheless, the Company is actively seeking other possible international ventures in the region.
Despite significant positive changes to Company operations already, Inspire representatives are projecting several weeks before making specific recommendations. Inspire has indicated that in order to move the Company towards increased future success, several additional dramatic changes may be necessary to improve production and drilling operations.
Andrew V. Reid, the Company's current Chief Executive Officer, stated, "I am fully on-board with the changes that Inspire has already recommended and look forward to reviewing the future changes they will recommend. Treaty and its management have undertaken a tremendous effort to move the Company on the right path since its unsuccessful marginal well project in 2012. In the third quarter of 2013, Treaty posted its first net profit in Company history."
Mr. Reid added, "Now, we are looking to lead with oil and gas professionals on board. Several positions, including the CFO and CIO positions remain vacant and need to be filled. We have asked the Inspire team to recommend sound leadership including new management where necessary. Shareholders should rest assured that large scale positive changes are on the way."
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