NEW ORLEANS, Aug. 30, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today reported financial results for the second quarter and six months ended June 30, 2011.
Revenue for the second quarter of 2011 increased to $111,035 from no revenues in the second quarter of 2010. These revenues are from oil production and well drilling for independent oil companies. Revenues are expected to increase significantly quarter-by-quarter.
Net loss for the second quarter of 2011 was $3.947 million, or $(0.01) per diluted share, an increase from $115,202 million, or nil per diluted share, for the second quarter of 2010. Net loss for the first six months of 2011 was $4.193 million, or $(0.01) per diluted share, an increase of $3.99 million, from $202 thousand, or nil per diluted share, for the comparable period in 2010.
Shareholders' Equity made an impressive reversal to the upside, from a negative of $1.231 million at December 31, 2010, to a positive Shareholders' Equity of $535 thousand at June 30, 2011.
Other Financial Highlights:
- Total Assets increased to $2.538 million, an increase of 898% at June 30, 2011, from $254 thousand at December 31, 2010.
- Additional Paid In Capital rose to $5.937 million, an increase of 1,026% at June 30, 2011, from $527 thousand at December 31, 2010.
- Total Stockholders' Equity increased to a positive $535 thousand at June 30, 2011, an improvement of $1.767 million from the Company's negative net worth of $1.231 million at December 31, 2011.
- Proved Producing Oil Reserves increased to $1.26 million from none at December 31, 2010.
- In Belize, the Company has secured sufficient funds to drill the first two exploratory wells. Based on the results of those initial wells the company will make an informed decision how to best secure funds for the dozens of wells it expects to drill in Belize over the next 12-24 months. All Geological and Geophysical studies have been completed and Treaty is confident as to where the hydrocarbons are located on the land portion of the Princess Petroleum Concession.
- In Texas the Company has reworked 12 wells and brought them into production. In the next 12 months Treaty expects to rework 30 additional wells and drill up to 80 new wells spread over all the currently owned leases in Texas. Current production is approximately 50 barrels of oil per day. Treaty expects to be producing 200-350 barrels of oil per day by this year's end and within the next 10 months, the Company expects to be at 1000 barrels of oil per day from its Texas leases.
Operational and Other Highlights:
- Treaty Energy acquired C&C Petroleum Management, LLC on April 8, 2011, which included the acquisition of three leases in Texas.
- Treaty Energy acquired the assets of a drilling company on April 20, 2011, and then established Treaty Energy Drilling, LLC, effective April 29, 2011, a step toward vertical integration of the Company.
- Treaty Energy announced on May 9, 2011 the organization of its new Belizean operating subsidiary, Treaty Belize Energy Ltd.
- Treaty Energy acquired the two "Shotwell Leases" on May 25, 2011 in Texas for $170,000.
- Treaty Energy acquired the "Great Eight Leases" in Texas on May 31, 2011.
"The second quarter of 2011 is the turn around quarter for our Company!" stated Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation. "This is the quarter that Treaty Energy went from being a 'development stage' company with aspiration and a business plan, and became a revenue producing international oil and gas company."
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