NEW ORLEANS, July 31, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( www.treatyenergy.com), a rapidly growing international energy company, today announced the $1.2 million funding required to complete the two-part acquisition of four new Oil & Gas Leases in Shelby County, Texas is in escrow and this transaction will be finalized this week.
The acquisition of four new Oil & Gas Leases in Eastern Texas, and the plan to re-enter and re-complete the MADELEY F 1H well in Shelby County, Texas was first announced by news release on July 9, 2012 (See prior release: http://www.treatyenergy.com/flashsite/index-5.php?fn_mode=fullnews&fn_incl=0&fn_id=119).
Since the start of this two-part acquisition Treaty Energy has re-opened the MADELEY F 1H well and it has been "Certified" production of 192 BOPD and 822 MCF of natural gas. Treaty is now connected to the XTO pipeline and waiting for that company's representative to open the valve accepting Treaty's gas into their pipeline this week. Division orders have just been signed with the Eastex Crude Co. located in Leesburg, Texas.
Andrew V. Reid, Chairman of Treaty Energy Corporation, stated, "In addition to re-opening the MADELEY F 1H well Treaty Energy has reworked the Lakeshore #1 well that is producing about 37 BOPD, and we put the MADELEY M 1H Injection well back into use for water disposal. As stated in the July 9 th news release, Treaty plans to extend the lateral on the MADELEY F 1H well after pressure abates and the current production rate diminishes. The lateral, currently drilled only to 16 ft, will be extended up to 1770 ft which is permitted for this well."Treaty engineers, well planners and Jimmy Jones, who will oversee drilling of all wells on the CHUMLEY LEASE and the 3K Oil Trust Leases, the ISAIAH HILL, MADELEY and ELLORA LEASES, are expecting a dramatic production increase from the MADELEY F 1H well when the lateral extension is completed. Mr. Reid added, "Upon closing of part-two of this acquisition this week a well that is producing 45 BOPD on the CHUMLEY LEASE will be transferred to Treaty, bringing the pre-drilling production on this four-lease acquisition to approximately 267 BOPD and 822 MCF of natural gas."