NEW ORLEANS, May 9, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTC: TECO) ( www.treatyenergy.com), a growth-oriented international energy company, today announced a binding Letter of Intent (LOI) with U.S. Fuels, Inc. of Breckenridge, Texas.
The eventual transaction to result from this LOI is an "Exploration Agreement" which is to be finalized before July 31, 2013, relating to five (5) West Texas leases covering approximately 1,830 acres. To view details on the binding Letter of Intent, please visit the following link: http://www.treatyenergy.com/sites/default/files/TECO_US_FUELS_LOI.pdf.
Treaty Energy is currently drilling two wells on the 40 acre Mitchell Lease in Taylor County, Texas which is included in this agreement. The other four Texas leases are as follows:
- Knott Lease – 40 Acres in Taylor County
- Stroebel Lease – 700 Acres in Eastland County
- Standard Lease – 400 Acres in Taylor County
- Bridges Lease – 650 Acres in Stephens County
Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, stated, "Treaty will pursue drilling and rework opportunities that offer greater initial production and better ROI in the future, rather than reworking and operating stripper wells. Going forward, Treaty intends to concentrate on prime leases with future wells, similar to the two Mitchell wells that are currently being drilled and completed."Mr. Reid further stated, "Treaty has funding in place to drill a number of additional wells without needing to seek additional funding for new drilling projects. Management is confident that as production comes online from these initial new wells, drilling of additional wells will occur at a reasonable pace and will likely be funded through expected positive cash flows."