HOUSTON, April 12, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCBB: TECO), a growth-oriented energy company in the oil and gas industry, today announced it has signed a definitive letter of intent to purchase additional producing oil and gas leases in the Shackelford County Regular Field, in the Texas 7B Oil District.
This acquisition is projected to close on April 14, 2011. The detailed terms of this acquisition will be released upon closing in a Form 8K filing. Production on these leases for the last reported month of January 2011 was 379 BBLS of sweet crude oil.
The operator on these new leases will be Treaty's recently acquired subsidiary, C & C Petroleum Management LLC, which has applied for its operator's number along with all the required bonding being posted. The Company expects C & C Petroleum Management LLC to receive its operator number in the immediate future and to see its first revenues from oil production in Texas before the end of April.
Andrew Reid, CEO of Treaty Energy Corporation, stated, "Treaty Energy has numerous acquisitions that are forthcoming similar to this one that have tremendous up-side potential at a reasonable purchase price, while providing other opportunities for our Company to start producing and increasing our oil revenues. Treaty is also expecting new oil production to come from our Belize project, as well as other areas in Central America that we are currently pursuing."
Additionally, Mr. Reid stated, "We believe Treaty is well positioned to see rapid growth in oil production over the next several months through a combination of well workovers on these new leases, and additional acquisitions that are projected to come on line in a rapid fashion."
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