Dec. 9, 2011
/PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today announced the release of the following letter to shareholders of the Company.
Letter to Shareholders:
We would like to thank all of our shareholders for their continued support. Through the hard work and dedicated diligence of exceptional employees, Treaty Energy has realized considerable progress within our drilling programs in 2011. Having obtained a level of success both here in
the United States
has led all of us here at Treaty to welcome 2012 with open arms and a renewed spirit that anything is possible through the hard work of a competent management team coupled with a group of dedicated employees. Although much has been accomplished, much still remains to be completed. We have total confidence that Treaty's management and personnel are well prepared for the challenges ahead. In keeping with the spirit of transparency, we would like to provide a few updates to shareholders on our
Treaty has continued to invest in our
leases in order to increase production through an aggressive work over program spearheaded by
Stephen L. York
, our President and COO. We are working on upgrading all leases in
with new technologies in order to reduce operating cost and increase efficiency of the existing wells. We should have steady consistent production by the end of the year on the currently producing wells. Treaty recently closed on the purchase and amended agreement with Search Energy to allow for us to proceed with drilling operation on the Wooldridge leases. In addition, we have closed on a
commitment to fund a drilling program of 12 shallow wells on the Wooldridge Leases.
Our technical team is in the process of reworking, through a process of Gel Fracking, 5 wells on the Wooldridge leases in addition to drilling the 12 new wells. As of
December 8, 2011
our working leases in
are producing 40-50 bpd, and upon completion of the 12 new wells we expect
production to exceed 250 bpd. Our investment banking team, headed by
, is currently working on a
9-Well funding that if successful should put us at our goal of 1000 BOPD by Mid-Year 2012.
Treaty is working closely with all departments of the
government to assure our compliance with their regulations. Regulations in
for drilling are significantly different than here in the States and we must proceed cautiously. Regulations for Safety, Reporting, and Technical requirements are not necessarily outlined in detail as we move into the exploration phase. We continue to move forward, adapting immediately to situations as they are brought to our attention. We continue to make steady progress in this phase of the operation. Treaty Energy, through Princess Petroleum, was notified in September that the Geology and Petroleum Department would commence holding "
Quarterly Technical Meetings
" with all Production Sharing Agreement (PSA) holders. The objective of these quarterly meetings will be to apprise the department of the company's ongoing exploratory activities in their respective contract area. The purpose of the meetings will be to foster a better working relationship with the Government and PSA holders and allow for the companies to inform and update the government on all petroleum based activities.
Treaty's quarterly meeting was scheduled for
Wednesday, November 30
, 2011. We were at a particular stage of the drilling that we were able to halt operations temporarily without any technical issues. It was decided that while the meeting took place the drilling team would return to
for a short time, as our drilling superintendent and other key staff were required to attend the meetings.
The drilling team will return to
, from our
project, to resume the drilling program next week.
Paradise Energy, Ltd
Treaty has not been involved in any litigation involving the acquisition of Paradise Energy Ltd or the Paradise Concession and looks forward to much success with the acquisition. We will provide updates on this acquisition in the near future.