NEW ORLEANS, Feb. 1, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), a growth-oriented international energy company, in follow up to its announced discovery of oil on the Stann Creek Field in Southern Belize, hereby details its review of the first successful oil well strike by the Company.
Stephen L. York, President and COO of Treaty Energy Corporation, stated, "Further review of the drilling samples from Princess/Treaty Well #2 on the Stann Creek Field confirms that the pay is a residual lime. Lime must be treated to enhance oil recovery. Standard treatment for lime includes treatment of the formation with additives to enhance inter-capillary wicking, which in return promotes oil flow to the well bore. Our independent logger made a visual analysis with microscope and blacklight and confirmed the presence of hydrocarbons. The logging equipment registered a steady increase, with a spike of associated gases through the lime pay-zone. The porosity was estimated to be from 8-12%. This is about average for a successful lime play well."
Mr. York added, "There have been numerous questions fielded in the last 72 hours. Here is a synopsis to curtail the speculation.
- This is not a BNE well. BNE wells from all indications have much higher gas drive reservoirs (with some H2S gas) and free flowed initially.
- The Princess/Treaty reservoir area was determined in size by Satellite image and Chem-Tool. Pay-zone depth was determined from actual drilling and mud logging. Porosity and saturation were gauged visually and outside consultants using statistical modeling, with low-side parameters predicted a reservoir size of 6M barrels. This figure could grow depending on the trending of the reservoir.
- The first batches of samples were left in 90 degree sun and the gases, being lighter than the atmosphere, dissipated at an accelerated rate. At 1300' circulation become erratic, so sampling was not optimum, but the mud-logging data supported the initial mud samples.
- There were no asphaltenes (tar) present. (Asphaltene is solid residual and will not produce a sheen on mud or water)
- Successful lime play wells have been produce from porosity as low as 6%.
- Deeper pay-zones may exist and will be investigated.
Once again, supplemental equipment such as wireline truck, perf-gun, etc., has been located and contracts to purchase have been issued. All ancillary equipment such as tubing, sucker-rods, down-hole pump, pumpjack, etc. will be shipped on Treaty Energy's truck as soon as it returns from Belize.
Citing the pre-planned Company analysis and memos, the enhanced value, as predicted, will not be in the initial 12 developmental vertical wells, but the projected horizontal wells with 2,000'-4,000' vertical legs in the heart of the reservoir."
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.
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