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NEW ORLEANS, Jan. 22, 2014 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (
www.treatyenergy.com), an international energy company, today reported results for its third quarter ended
September 30, 2013. The third quarter highlights the first quarter gains from new oil and gas field development operations.
The third quarter is marked as the first quarter that revenues were recorded from Treaty Energy ("the Company") on the Company's
Mitchell project in
Tuscola, Texas. From the two wells drilled, oil and gas revenues were at
$79,322 with revenues extending into the fourth quarter. This 4.61% increase in revenues is the result of eliminating the Company's marginal well inventory (over 50 wells) and replacing the Company's inventory with two new operating wells, marking a successful revenue replacement and cost cutting move for the Company.
Total revenues for the nine months ended
September 30, 2013 are up 34.33% to
$221,984 and are expected to increase with further projects extending into the fourth quarter of 2013 and into the first quarter of 2014.
In addition to replacing its marginal well inventory, the Company further reduced general and administrative costs to
$435,173, down from
$4,680,631, a decrease of 90.7% as compared to the three months ended
September 30 a year earlier. The general and administrative costs for the nine months ended
September 30, 2013 of
$4,393,226 are reduced by 25.35% as compared to the same nine months of the prior year.
Total expenses for the three months ended
September 30, 2013 declined 71.68% to
$5,130,780 as compared to the same three months of the prior year. Total expenses also declined 11.51% to
$6,100,530 as compared to the same nine months of the prior year.
The total operating loss for the third quarter was down to
$1,373,529 as compared to
$5,055,113 for the same period a year earlier for a reduction of 72.83%. This is an indication that the Company is moving to a more efficient and streamlined operation.
The Company showed a Net Income of
$27,321 which was attributable to an adjustment in Derivative Liability expense.
On the subject of the third quarter financials, Chief Executive Officer of Treaty Energy,
Andrew V. Reid stated, "The third quarter financials show a very clear picture for shareholders. Expenses are down across the board, revenues are equal to or slightly higher on a much smaller well inventory and new projects are underway. Treaty Energy is moving in the right direction with this new and successful transition to oil and gas field development."
Mr. Reid further explained the overall strategy for the Company, "Treaty Energy plans to keep true to its original plan to acquire and develop leases that are underutilized, but will bring in new business partners to limit liabilities and keep costs low to further move the Company quickly into a cash flow positive future."