NEW ORLEANS, May 22, 2014 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today announced that the company has signed an agreement for a four well farmout drilling program with Aquinas Energy Resources, Inc. on the Belle Wisdom lease in Brazoria County, Texas.
Chris D. Tesarski, Executive Chairman of Treaty Energy, is pleased to announce that Andrew V. Reid, Treaty Energy's CEO, has signed a farmout agreement with Aquinas Energy Resources, Inc., a Houston-based oil and gas company. Texas Sands Resources will be the operator of the project and will be applying for the first drilling permit based on a location that will be chosen by the company in conjunction with technical guidance from Aquinas' Geologist, Bill Gaskin. Prior to drilling, Aquinas Energy will be providing Treaty Energy and Texas Sands Resources with Seismic data for management's review to ensure that the wells provide the maximum return on investment at the lowest risk possible.
This initial agreement covers four well locations on the Belle Wisdom Lease located approximately 45 miles southwest of Houston in Brazoria County, just outside of Damon, Texas. The lease is geologically positioned in the Damon Salt Dome area.
The four wells are expected to be drilled into the Marge and Frio Attic pay zones and will range from 4,000ft to 5,000ft in depth. Based on historic well production data, anticipated initial production rates on these wells could yield at least 100 BOPD per well. According to geological data, there are more than 440,000 barrels of recoverable reserves on the Belle Wisdom lease.
Treaty Energy will receive 80% of the net revenue from production, until initial investment payout, and then 70% of net revenues after payout of all costs. This farmout agreement is supported with substantial technical data that will be posted on the presentations page on the Aquinas Energy website (http://www.aquinasenergy.com/presentations.html) for investors to review.
On this matter, Mr. Tesarski stated, "I am thrilled to announce that we have moved quickly from the LOI announced on May 15th to the executed farmout agreement on such a timely basis. This project will be the first new drilling program for the Company's new board of directors to oversee and will mark a new chapter in Treaty Energy's history. The project has the potential to provide a tremendous revenue stream for Treaty Energy. In addition, after the first four wells are drilled, shareholders should look forward to other drilling opportunities on over 31,000 additional acres controlled by Aquinas Energy."
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 OTC. 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