NEW ORLEANS, Nov. 8, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( www.treatyenergy.com), an international energy company, today reported results for second quarter ended June 30, 2013. The second quarter highlights an internal restructuring and transitionary period from marginal well operations to new oil and gas field development operations.
The second quarter was marked as an internal restructuring and transition period for Treaty Energy (the "Company"). During the three months starting April 1, 2013 to June 30, 2013, the Company transitioned from operating marginal/stripper wells to new drills. Just prior to April 1, 2013, Treaty Energy shut down marginal well operations and sold a majority of its well inventory ("Great 8 Leases") to Heritage Oil and Gas on April 19, 2013 for a total of $550,000. With no operating inventory during this time, the Company acknowledges an operating loss and a very limited revenue stream of $4,045. Despite low revenues during this period, revenue for the first six months of 2013 was up 50.8% compared to the same period of the prior year.
The sale of the "Great 8 Leases" has resulted in a write off of $455,777. After adjustments, the sale of the "Great 8 Leases" is still recognized as a net gain of $130,661 to the Company. Any subsequent payments on the Great 8 Leases will be recognized as a gain.One concern of note to several shareholders may be the lack of revenue from the Company's newly drilled Mitchell wells. As reported in item 2 (page 22) of the second quarter financials, due to oil being collected but funds not dispersed during this period, revenues from this lease have been deferred to the third quarter financials.