NEW ORLEANS, Oct. 29, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced it has signed a $3,500,000 drilling contract to drill 500 shallow wells in Louisiana through its drilling services subsidiary, Treaty Energy Drilling, LLC.
Treaty Energy Drilling, a wholly owned subsidiary of Treaty Energy Corporation, has secured and signed a $3,500,000 500 well drilling contract in Louisiana. All of the wells in the contract are considered shallow vertical drills and will be approximately 475ft. in depth. Drilling is expected to begin on November 6, 2013 and at least thirty wells are expected to be completed by January 31, 2014.
Treaty Energy Drilling plans to use its Failing 1500 CF Mounted Drilling rig to drill the wells. The drilling rig is currently being retooled and upgraded before starting the job to ensure a quick drilling time.
Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation, stated, "When the Company initially started Treaty Energy Drilling, the Company believed that it would be more cost effective to drill its own wells. However looking at financials earlier this year, the Company decided that the best course of action would be to use the experience of Treaty Energy Drilling to drill wells under contract to third parties to diversify the revenue stream and bring in additional capital to the Company."
Mr. Reid continued, "This type of contract is exactly the reason that the Company shifted Treaty Energy Drilling to being a third party contractor. We will use the profits from this operation to fund our operations domestically and internationally, providing a secondary revenue stream for future Company operations. The Company is excited to be drilling these wells and expanding our operations to Louisiana."
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