NEW ORLEANS, July 6, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today reports to its stakeholders on progress in Texas, Belize and Kansas.
Stephen L. York, President and COO of Treaty Energy Corporation, stated, "Treaty Energy has now commenced selling oil through its wholly owned subsidiary and operating company, C & C Petroleum Management, LLC. Due to the measure of time required to transfer all of the leases to the operating company and then obtain the time and date stamped P4's from the Texas Railroad Commission (RRC), only two days were left in the month of June to transport oil. The oil shipped in those two days was 490.19 BBLS. The 'Operators Run Statement' that details these oil deliveries will be posted to the Treaty website."
Mr. York stated, "I am estimating the shipment of about 800 BBLS of oil in July, while starting to rework wells on all 11 leases that are currently transferred for production to C & C Petroleum Management LLC. Our production goals are based only on currently producing wells and wells that will be brought on line over the next 60 days to reach 50 plus BBLS per day. Therefore we are projecting monthly oil production for August to be about 1000 BBLS and for September to be about 1250 BBLS."
It is Treaty's plan to drill at least 10 new wells in Texas during the next 90 days. The August and September oil production estimates do not include any production from new wells.
In addition to revenues from oil production Treaty Energy will continue to drill 2-4 wells per month for other independent operating companies. Currently Mr. York estimates that he has commitments to drill 15 – 25 wells in addition to the 10 wells he will drill for Treaty.
The Belize project is moving rapidly. As of July 5th the Drilling Rig, Bulldozer, Backhoe and Trucks are being delivered to the Mobile, Alabama port facilities of MCW Shipping. As of today the estimated shipping date would be July 16th or July 17th. These dates are the latest from the shipping company that was earlier reported to be about the 10th of July. These schedules are controlled totally by the shipping company and can be affected by many things, such as loading and unloading times in port and especially weather conditions. Treaty will post pictures of the Belize-bound equipment in the port of Mobile on its website when available.
Treaty Energy is proud to announce the newest addition to our family, Brian Luczywo, as Operations Manager for Treaty Belize Energy LLC, its Belize-based operating company. Mr. Luczywo left for Belize on July 5th and will be moving his family there over the next month. Mr. Luczywo's children are home schooled, therefore making this a great opportunity for Treaty to have a full time manager and his family living in Belize overseeing all of Treaty's operations on this major oil project.
Once the Drilling Rig and other equipment are in Belize, Treaty will commence preparation of the first well site pad and access road prior to moving the drilling rig in place. Treaty also will commence with the hiring of local workers from areas around the well sites to assist in the clearing, preparing the well pads and eventually drilling the wells.
Andrew V. Reid, Chairman and CEO of Treaty Energy, stated, "I am quite frankly amazed at the progress Treaty has made on all fronts during the second quarter of this year. Treaty has finally started real production from the Texas wells, has a real drilling program for new wells in Texas plus a rework schedule for the older wells."
Mr. Reid added, "Our stakeholders will see a drastically improved balance sheet and statement of operations for Treaty's second quarter (Q2), with oil production and drilling revenues for June included in the Q2 results."
Finally, Mr. Reid stated, "The Kansas deal has finally come to fruition, but in a different format than the original proposed transaction. The new Kansas deal will be detailed shortly in a joint release from Treaty Energy and Lester Town of Town Oil Company. I am very pleased about bringing the Kansas deal into Treaty Energy and we all look forward to working with Lester Town and the Town Oil group."
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