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Nov. 11, 2013 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (
http://www.treatyenergy.com), a growth-oriented international energy company, today announced plans to expand its oil and gas field development operations in
Tuscola, Texas and provided a material update on all other current operations in
East Texas and in
Treaty Energy Corporation has acquired lease rights to drill thirteen (13) new wells on the 260 acre Kubacak lease. The Kubacak lease is located approximately three and a half miles southwest of the Company's current operations on the Stockton and Mitchell leases. The Company plans to develop the Kubacak lease in three phases. The first phase calls to develop three wells to determine the field's characteristics, the second phase will expand on the first three wells to include an additional 10 wells. The third phase will be announced at a later date, after the first two phases are completed and more lease assets are acquired.
Prior to this announcement, the Company applied and received approval to begin drilling the Kubacak #3 well and has already begun pre-drilling operation to minimize delays in drilling between the Stockton lease project and the Kubacak lease project. To view the approved permit, please visit:
The Company plans on applying for the other two permits once it receives confirmation of a final drilling schedule from its contractors. The Company anticipates that drilling of Kubacak #3 will begin before the end of the month.
The Kubacak lease is located on the Taylor County Regular, the same producing field as the Stockton and Mitchell leases. Unlike the Stockton and Mitchell leases, the Kubacak lease is considered underdeveloped. Most of the wells in the area were plugged in 1971 to 1973 after OPEC became the dominate price setter for crude oil prices around the world and oil production demand declined in
the United States. Initial production rates for this field vary between 50-174 barrels of oil per day and show that new wells in the area may have up to five potential pay zones.
News of the Kubacak development comes on news that the Company reached total depth on the Stockton #3 well and completion work on the Stockton #2 well is nearing completion. Initial swabbing attempts on the Stockton #2 have pulled high yields for oil production and initial electrical and geological logs on the Stockton #3 show confirmation of oil production similar to the Stockton #2 well. Both wells are expected to produce similar to or exceed production on the Mitchell #4 well.