NEW ORLEANS, June 16, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today updates its stakeholders on drilling progress in Texas.
Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation, stated, "I am extremely pleased to announce that on Wednesday of this week we made the final payment on the Failing 1500 CF Truck Mounted Drilling Rig that was purchased in mid-April to drill wells on the Treaty owned Texas leases."
The purchase price for the Failing 1500 CF Rig and all related components, including all current drilling contracts for this Rig, was $180,000, as detailed in the Company's Form 8-K filing with the SEC on April 20, 2011.
Mr. Reid added, "This Rig has been drilling constantly since being acquired under drilling contracts with independent oil companies, and has a backlog of several more wells to drill and the possibility of a large contract to be agreed to during the next few days." He added further, "Demand has been so intense for this Rig that we are in discussions with Stephen L. York, President and COO of Treaty, to add a second rig for our Texas operations. This would bring the Treaty owned rigs to three should the discussions be finalized to purchase the second Texas rig."Treaty's drilling company, Treaty Energy Drilling, LLC, has been productively drilling wells for independent oil companies since mid-April and has already logged operational profits of more than $42,000 to date from these drilling contracts. As this drilling continues, the Company's drilling company will be starting a new well (spud in) for another independent oil company on Monday, June 20th. Stephen York stated, "I have received inquiries to drill another 25 wells for Treaty Energy Drilling's top three customers." Mr. York added, "The BARNES LEASE has been officially transferred to C & C Petroleum Management, LLC, Treaty's operations entity, and based on this transfer we have started processing all stored oil for sale to BLM Oil Transport. Our HENDERSON and LONG LEASES are awaiting transfer by the State of Texas RRC to C & C Petroleum Management, and I expect these transfers to be completed this week. In addition, all paperwork has been filed with the State of Texas RRC to initiate the transfers of the GREAT 8 LEASES to C & C, a process that should be completed within a week." Mr. York stated further, "Oil pick ups have been scheduled with the Transporters. Upon initial receipt in the Transporters headquarters of the time and date stamped P4's from the Texas RRC, the transport trucks will commence the pickups. We are expecting to sell a minimum of 850 BBLS of oil in the month of June 2011."