NEW ORLEANS, June 22, 2011 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today announced the addition of equipment for rapid expansion on its Texas leases.
Stephen L. York, President and COO of Treaty Energy Corporation, announced today, "We have acquired a much needed work-over rig that will be a key element in our aggressive efforts to expand the Texas production of oil to my planned target of 900-1000 BBLS per day within a one year timeline."
Mr. York added, "I have secured the final pieces necessary to build our own (Treaty Energy Drilling's) work-over rig. This will allow us to service our own wells. We will be able to pull sucker-rods, tubing, and down hole pumps as necessary. This piece of equipment will save Treaty time and money and give us flexibility in the field to perform a variety of tasks on our own timeline."
The rig consists of a 38 foot mast and draw works mounted on a late model GMC truck chassis. The mast and draw works will be powered by a three cylinder diesel engine.Mr. York added further, "I anticipate that the work-over rig will be capable of pulling 3500 feet of tubing or sucker-rods, which at this time will more than fit our current needs. Completion of fabrication and testing should take six weeks." Mr. York explained that, "Treaty currently has 30 wells that are ready for work-over on the leases in Texas. Adding our own work-over rig will allow Treaty to bring these wells on rapidly, which is expected to add another 30-40 BBLS of oil per day to production in Texas." The work-over of the non-producing wells along with the ability to improve the 22 producing wells currently on Treaty leases is a vital first step toward attaining the production goals set for the current Texas leases. Additional drilling equipment will be added in the immediate future as Mr. York said he has 24 new drill sites on the BARNES, HENDERSON, and LONG LEASES, and estimates of 100-150 new wells to be drilled on the GREAT 8 LEASES. These wells will be drilled to many different depths as the Treaty leases are believed to have different zones of potential production ranging in depth from 400 feet to 7000 feet. Finally, Mr. York stated, "Upon final payment on the SHOTWELL LEASES we will add another 5 BBLS of oil per day to our production and approximately an additional 40 well sites to drill."