NEW ORLEANS, Aug. 28, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com), a growth-oriented international energy company, today announced that the Company has completed the acquisition of the Stockton #1 well (RRC ID: 28016) in Tuscola, Texas. The well will undergo reperforation and reworks to increase production for the Company.
As part of the Company's on-going oil and gas development strategy in Tuscola, Texas, the Company has acquired a 75% net revenue interest (NRI) and a 100% working interest (W/I) on the Stockton #1 well. The final purchase price of the Stockton #1 was $75,000 and includes the existing tank battery and oil/water separators. The well will be operated by U.S. Fuels of Breckenridge, Texas.
Stockton #1 was drilled on October 26, 1996 and was originally perforated in the gray sandstone at a depth of 4260'. After research, the Company discovered that the well was not perforated at any other depths despite positive shows in the wellbore. Due to the well being only perforated in one region, this is classified as both a marginal well and as a well with undeveloped production potential.The Company intends on perforating the well to the Gardner Limestone region, at roughly the same depth(s) as the Mitchell #3 & #4. The current plan of operation is to use 2,000-3,500 gallons of NEFE acid in both the new and old perforation zones. To further increase possible production, the Company may sand fracture both areas and chase the well with KCL water depending on the results of the acidization process. The Stockton #1 acquisition will provide three pieces of critical value to the Company:
- Reperforation of the Stockton #1 will provide valuable insight into the size of the oil field on the Stockton and Standard leases; to insure future drilling investments on the planned Stockton #2 and #3 are as conservative and as cost effective as possible.
- The purchase of the tanks and separators will reduce the overall project costs on the Stockton #2 and #3, which are planned and permitted to be drilled.
- The well is expected to bring in additional revenue and produce a return on investment in three to four months, minus cost savings on the future Stockton #2 and #3.