Oct 4, 2011
/PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today reported on its operations in
and its Treaty Belize Energy Ltd Oil & Gas project in
Andrew V. Reid
, CEO of Treaty Energy Corporation, reported, "The rework and upgrade program on our
operations is proving to be effective. Total rework of some leases and partial rework of certain other leases has been performed on 10 of the 13 leases owned by Treaty."
Stephen L. York
, President and COO of Treaty, the person directing the
operations, stated, "To put everything in perspective, Treaty Energy is evolving into a genuine oil company. To date every lease we have in
has been evaluated and run wide open until the problem areas could be identified. Over the previous 60 days our rework program has forged ahead reworking, revamping, and upgrading systems and equipment in a proficient and competent approach that will allow consistent, stable production on a monthly basis."
Mr. York added, "These early evaluations and the corrections of detected problems needed to be addressed in order to proceed forward and substantially improve and increase production rates. The balance of the rework will be completed in October. In addition, Treaty currently has two workover Rigs on site that are completing this initial phase of growing our
production. Our current production from 35 wells is about 50 BOPD, with production expected to be in excess of 60 BOPD by the end of October."
"Finally, on the rework program and production numbers," Mr. York stated, "all of this has been accomplished during the worst drought and prolonged period of record high temperatures that
has seen in many years. Stress on the equipment, electrical systems, flow lines and other operational items was exceedingly high which caused a two step forward one step back scenario, which definitely hindered the rework program and greatly effected the efficiency in achieving additional production."
With the leases upgraded and all workovers done by the end of this month, Treaty will initiate the drilling phase of the program and continue toward achieving the stated production goal of 1000 BOPD by the end of
Treaty indicated that its
production could be increased beyond the goals stated earlier by way of additional lease acquisitions. Currently Treaty has two leases under purchase contracts, and is paying for these acquisitions on a monthly basis, and when completed, these two added leases will add immediate production out of 2 wells in addition to providing 12 new drilling locations (PUDs) that Treaty is looking forward to exploring as soon as the acquisition is completed. These 12 new wells could add 100–120 BOPD to the
production prior to the end of this year.
As to the
project, Mr. Reid stated, "While we had anticipated the drilling of Well #1 in
to commence last week, we are moving forward on a steady basis. Comments below from a report by
, Treaty's President and COO, and
, Treaty's Drilling Superintendent, will clarify the progress being made in
As outlined in Mr. York's report, "After evaluation of the drill site of Well #1 and surrounding terrain several changes have been made. The well pad had to be compacted and large timbers were laid in place to withstand the weight of the Rig and equipment during drilling operations. Rainfall needed to be taken into consideration during the drilling phase and appropriate steps are being taken to prepare for water soak of the drilling pad.