NEW ORLEANS, March 29, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( www.treatyenergy.com), a growth-oriented international energy company, announced the completion of a funding agreement under which Treaty Energy will drill five wells of 2,600 to 3,000 ft depth on several of its Texas leases.
Andrew V. Reid, Chairman and Co-CEO of Treaty Energy Corporation, stated, "We are pleased to announce that the funding commitment for this new 5-well program is from the same investment group that provided the funding for the 12-well program that will commence drilling upon return of the smaller rig from Belize. We are also pleased to say that funding for the four additional wells of the 9-well program we discussed in a prior release appears to be imminent."
The Company expects that these new deeper wells will be plotted, staked and permitted over the next 30 days and will start to be drilled and completed shortly thereafter. With the addition of this new 5-well program, Treaty Energy will have two new drilling programs running in Texas during the next few months.
Mr. Reid stated, "The 12 shallow wells will begin with the two sites already permitted. Ten additional drilling sites will be permitted shortly after drilling the first two wells. This 12-well program is expected to take up to three months to complete and we are reminded that previous wells on the Wooldridge leases had initial production rates between 30 and 31 barrels of oil per day (BOPD). We are also reminded of plans to add 12 more shallow well drill sites after completion of drilling the initial 12 wells that Treaty has funded."Mr. Reid added, "On the new 5-well program, where we will be drilling to depths of 2,600 to 3,000 ft, production is expected to be 30 to 100 BOPD if our results are similar to other new wells drilled near our leases at similar depths."