NEW ORLEANS, Oct. 11, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced that the Company has cased and cemented the Stockton #2 well in Tuscola, Texas with positive initial results.
The Company began drilling the Stockton #2 well on September 27, 2013. At roughly 8:20AM on October 08, 2013 the drilling operation reached a total depth of 4,783ft. after visible signs of hydrocarbons in the mud pits.
A top-to-bottom wire line log was conducted which, as anticipated, confirmed two pay zones in the well located at 4,075ft. and 4,490ft. with the pay zone sizes being 25ft. and 8ft., respectively. The Stockton #2 well shares a similar pay zone at 4,490ft. to the Company's successful Mitchell #4 well, which is located approximately 1,000ft. away from this new well site. The multiple confirmed pay zones will serve to extend the longevity of the well. Perforation will occur in the Gardner Limestone at 4,490ft. based on the strength of the reserve at that depth.
The Stockton #2 is expected to perform equally or slightly better than the Mitchell #4 well, which received an initial production rate of 61 barrels of oil per day (BOPD) and received a resting production rate of 45-50 BOPD during the well's first two months of production.
After a thorough review of the logs and samples, the Company's drilling contractor began to run casing. Cementing was completed early on October 10, 2013 and is expected to take approximately 72 hours to cure. A crew will arrive early next week to perforate and complete the well. Per Company protocol, the Company will wait 1-2 weeks for production levels to stabilize before announcing production rates.
Mitchell #5 and Stockton #3
Based on data gathered during the wire line logging of the Stockton #2 well, the Company has made the decision to accelerate its plans to drill another well on the Mitchell lease. The new well will be classified as Mitchell #5. The Company currently has net revenue interests (NRI) on three wells on the lease. Treaty Energy Corporation will maintain a 75% NRI and 100% working interest (W/I) on the Mitchell #5 well.
After completion of the wire line logging on the Stockton #2, the Company filed an accelerated permit application for the Mitchell #5 well on October 9, 2013. The permit can be viewed at Treaty Energy Corporation's website at: http://www.treatyenergy.com/sites/default/files/Mitchell5.pdf.
The Company has decided to drill the Mitchell #5 well before drilling the Stockton #3. The Company would like to evaluate the results of the Stockton #2 before proceeding with the Stockton #3. The primary reasoning behind this decision is that the Stockton #3 extends outfield, while the Mitchell #5 remains in field, where more production data exists.
The rig that is currently sitting on the Stockton #2 well will be used to drill the Mitchell #5. As soon as the drilling permits are approved on the Mitchell #5, the rig will move into position and immediately begin drilling, minimizing potential delays. Drilling on the Mitchell #5 is expected to begin next week and take approximately two weeks to complete. The drilling permit will remain active on the Stockton #3.
The Company has officially determined that the fracture job completed on the Mitchell #1 yielded an initial production rate of 20 BOPD. The established production rate is now between 5-10 BOPD. This work over is considered a significant success based on the return on investment (ROI) that the Company will receive.
Future Drilling Plans for the Tuscola Development
Effective immediately, the Company plans to have two active drilling permits set and ready to go at any given time. At the time of this release, the current active permits are the Stockton #3 and the Mitchell #5. Based on the success of the Mitchell wells and the Stockton #2, the Company expects to drill five new wells by the end of the year in the Tuscola region (excluding the Mitchell #3 and #4). This will bring the number of newly drilled wells to seven by the end of the 2013. The Company is expected, and on track, to meet its conservative 100 BOPD target by the end of the year.
Andrew Reid, Chief Executive Officer of Treaty Energy, stated, "The amount of success that the Company has had in the Tuscola, Texas region is tremendous. The Company is confident in these developments and plans to accelerate drilling operations in the region. We believed that these successes and planned future operations will serve to bring the Company to its full potential. Shareholders should be excited with developments in the region and can look forward to further drilling announcements in the near future."
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