NEW ORLEANS, May 15, 2014 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com), a growth-oriented international energy company, today announced the signing of a Letter of Intent for a four well farmout drilling program with Aquinas Energy Resources, Inc. on the Belle Wisdom leases in Brazoria County, Texas.
Chris D. Tesarski, Executive Chairman of Treaty Energy, is pleased to announce that Treaty Energy has signed a letter of intent to enter into a farmout agreement with Aquinas Energy Resources, Inc., a Houston-based oil and gas company.
This agreement initially covers four well locations on the Belle Wisdom Lease located approximately 45 miles southwest of Houston in Brazoria County, just outside of Damon, Texas. The leases are geologically positioned in the Damon Salt Dome area.
The four wells are expected to be drilled into the Marge and Frio Attic pay zones and will range from 4,000ft to 5,000ft in depth. Based on historic well production data, anticipated initial production rates on these wells could yield at least 100 BOPD per well. According to geological data, there are more than 440,000 barrels of recoverable reserves on the Belle Wisdom leases.Treaty Energy will receive 80% of the net revenue from production, until initial investment payout, and then 70% of net revenues after payout of all costs. This agreement is supported with substantial technical data that will be posted on the Texas Operations page of the Treaty Energy website ( http://www.treatyenergy.com/operations/texas) for investors to review. On this matter, Mr. Tesarski stated, "I am very pleased to announce this project to Treaty Energy's shareholders. As my first major project with the company, I want to ensure that Treaty establishes more transparency regarding its operations. Not only will this project potentially provide a great revenue stream for Treaty Energy, but after the first four wells are drilled, shareholders should look forward to other drilling opportunities on over 31,000 additional acres controlled by Aquinas Energy."