NEW ORLEANS, Aug. 16, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com), a growth-oriented international energy company, today announced that it sold a large portion of its existing marginal oil well assets in West Texas for $550,000 as part of the Company's long term re-organization strategy to decrease expenses and improve operational efficiency. The Company also announced its plan to acquire a new well as part of its program to develop the Tuscola, Texas area.
Summary of Results in West Texas
As announced in February of 2013, management initiated several major actions to improve the Company's financial strength. The first major action announced by the Company included a full review of all leases in West and East Texas that were purchased in 2011 and 2012.
The internal review was immediately responded to by management, which reacted by restructuring Company operations and by moving away from marginal well operations into hydrocarbon exploration opportunities on underdeveloped leases. These moves were announced mid-2013 and should not be unexpected by shareholders. Results of these actions are being seen in the third quarter (Q3) 2013 with the acquisition of the Mitchell, Stockton, Standard and Murl/Stroebel leases.Oil and gas development that occurred in late second quarter (Q2) on the Mitchell lease has produced more than 3,000 barrels of oil. Sale of Marginal Well Assets in West Texas As part of the Company's internal review of leases purchased in 2011 and 2012, cost effective and necessary work overs were performed on at least one well on each lease that was currently producing at least one barrel of oil per day (BOPD). A shallow well (Brown #22) was also drilled to determine the production potential of the Brown lease. Work over operations began in mid to late Q1 and early Q2. Actions taken during this time by the Company will be reflected in the Company's financial filings.