NEW ORLEANS, Dec. 9, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today announced the release of the following letter to shareholders of the Company.
Letter to Shareholders:
We would like to thank all of our shareholders for their continued support. Through the hard work and dedicated diligence of exceptional employees, Treaty Energy has realized considerable progress within our drilling programs in 2011. Having obtained a level of success both here in the United States and in Belize has led all of us here at Treaty to welcome 2012 with open arms and a renewed spirit that anything is possible through the hard work of a competent management team coupled with a group of dedicated employees. Although much has been accomplished, much still remains to be completed. We have total confidence that Treaty's management and personnel are well prepared for the challenges ahead. In keeping with the spirit of transparency, we would like to provide a few updates to shareholders on our Texas and Belize operations.
Treaty has continued to invest in our Texas leases in order to increase production through an aggressive work over program spearheaded by Stephen L. York, our President and COO. We are working on upgrading all leases in Texas with new technologies in order to reduce operating cost and increase efficiency of the existing wells. We should have steady consistent production by the end of the year on the currently producing wells. Treaty recently closed on the purchase and amended agreement with Search Energy to allow for us to proceed with drilling operation on the Wooldridge leases. In addition, we have closed on a $700,000 commitment to fund a drilling program of 12 shallow wells on the Wooldridge Leases.
Our technical team is in the process of reworking, through a process of Gel Fracking, 5 wells on the Wooldridge leases in addition to drilling the 12 new wells. As of December 8, 2011 our working leases in Texas are producing 40-50 bpd, and upon completion of the 12 new wells we expect Texas production to exceed 250 bpd. Our investment banking team, headed by Bruce Gwyn and Lee Schlesinger, is currently working on a $1,450,000 9-Well funding that if successful should put us at our goal of 1000 BOPD by Mid-Year 2012.
Treaty is working closely with all departments of the Belize government to assure our compliance with their regulations. Regulations in Belize for drilling are significantly different than here in the States and we must proceed cautiously. Regulations for Safety, Reporting, and Technical requirements are not necessarily outlined in detail as we move into the exploration phase. We continue to move forward, adapting immediately to situations as they are brought to our attention. We continue to make steady progress in this phase of the operation. Treaty Energy, through Princess Petroleum, was notified in September that the Geology and Petroleum Department would commence holding "Quarterly Technical Meetings" with all Production Sharing Agreement (PSA) holders. The objective of these quarterly meetings will be to apprise the department of the company's ongoing exploratory activities in their respective contract area. The purpose of the meetings will be to foster a better working relationship with the Government and PSA holders and allow for the companies to inform and update the government on all petroleum based activities.
Treaty's quarterly meeting was scheduled for Wednesday, November 30, 2011. We were at a particular stage of the drilling that we were able to halt operations temporarily without any technical issues. It was decided that while the meeting took place the drilling team would return to Texas for a short time, as our drilling superintendent and other key staff were required to attend the meetings.
The drilling team will return to Belize, from our Texas project, to resume the drilling program next week.
Paradise Energy, Ltd
Treaty has not been involved in any litigation involving the acquisition of Paradise Energy Ltd or the Paradise Concession and looks forward to much success with the acquisition. We will provide updates on this acquisition in the near future.
While Treaty made a commitment to keeping our shareholders informed of every step in our drilling progress, the situation in Belize is such that information we have provided in the past has created unintended consequences in turn causing delays with our progress there. Going forward Treaty will only be releasing limited updates on the drilling program until the first two wells have been evaluated and the government has been advised and approves the results achieved.
/s/ Andrew V. Reid
Andrew Reid, CEO Chairman
/s/ Bruce Gwyn
Bruce Gwyn, Co-CEO
About Treaty Energy Corporation
Treaty 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. For more information go to: www.treatyenergy.com
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