This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Treaty Energy Corporation Acquires Four Oil & Gas Leases In Shelby County, Texas

Stocks in this article: TECO

There will be at least two more wells drilled to the Fredricksburg Zone with similar laterals on the 3K Leases with estimated production by the well planners of up to 500 BOPD each based on well logs of similar wells close to the areas to be drilled.

The CHUMLEY LEASE contains one well that is producing at a current rate of about 45 BOPD.  This well was originally drilled to 3380 ft at which time the well blew out causing complete destruction of the drilling rig.  The well was brought under control by pumping cement down the hole up to the 1900 ft Saratoga Zone.  At that point the well started flowing and production equipment was set in place to produce the well. 

During the drilling and logging of the well four Pay Zones were found: the Saratoga Zone at 1900 ft; the Annona Zone at 2185 ft; the Tokio//Blossom Zone at 2500 ft; and the Fredricksburg Zone at 3380 ft.

The plan for the CHUMLEY LEASE, as per the Purchase Contract, is to drill and produce each Zone separately.  Initially, Treaty will build four Two-Acre Pads on which four wells will be drilled.  Each of the four wells per Pad will be drilled to one of the four Pay Zones previously mentioned.  Each of the Two-Acre Pads is estimated to have initial production of up to 1500 BOPD or up to 6000 BOPD for the group of four Pads.  The cost of drilling these wells is estimated at $165,000 for each of the Saratoga Zone wells, $190,000 for each of the Annona Zone wells, $215,000 for each of the Tokio/Blossom Zone wells, and $240,000 for each of the Fredricksburg Zone wells. 

Treaty will pay for these wells from a combination of revenues from oil sales and investments by some of the substantial new investors that have taken equity positions in the Company during the last six months.  At least one of these groups will be offered, and will likely accept, a seat on the Company's Board of Directors in the near future.  This will be a great moment for the long holding supporters of the Company.  Once the sites for the Two-Acre Pads are selected and permitted Treaty expects to complete the drilling program in 18 to 20 weeks. 

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs