|By Marketwired .||
|June 28, 2013 05:00 AM EDT||
NEW ORLEANS, LA -- (Marketwired) -- 06/28/13 -- Treaty Energy Corporation (OTCQB: TECO) (http://www.treatyenergy.com), a growth-oriented international energy company, today reported the fiscal results for the year ended December 31, 2012.
Message to Shareholders:
2012 was a challenging time for Treaty Energy Corporation. In 2011, Treaty Energy acquired several leases that the Company believed held great promise for the Company's future. The newly acquired leases were part of Treaty Energy's business model that included purchasing leases that had existing marginal wells on them with proven reserves and new drilling opportunities. These leases showed significant potential for growth but ultimately failed to deliver. While revenue for the twelve months ending on December 31, 2012 increased to $169,947 from $116,241 in the same period a year earlier, these leases created increased net losses for the Company. Higher expenses were the direct result of extra drilling expenses as well as increased work over and maintenance costs.
Towards the end of 2012, Treaty Energy Corporation began to re-evaluate and restructure every aspect of the Company's business plan based on the financial results of 2012. Treaty's new business model was put into action in the first quarter of 2013. To date, these changes have been extremely positive for the Company and have provided a solid financial base for future growth.
- Treaty Energy's Chairman, Andrew V. Reid, recommended to the board that Bruce Gwyn be appointed to the positions of President and Chief Operating Officer for Treaty Energy Corporation in early 2013. Mr. Gwyn was able to immediately reduce operating costs for all leases and operations. Outside vendors and third party experts were brought in to perform low-cost work overs and evaluations on all existing leases to determine long-term profitability. As a result of these evaluations, Treaty Energy Corporation announced that the company will move away from marginal well operations and will focus on new drills on leases with proven, yet underutilized, reserves.
- As part of Treaty Energy's newly implemented operating strategy, the Company successfully completed two wells on the Mitchell lease in late May/early June 2013. The two Mitchell wells are producing more than all existing marginal wells in Treaty Energy's inventory combined. They have produced 800% more oil than the marginal well inventory and have significantly lower upkeep and repair costs. The Mitchell lease is currently producing between 70-80 barrels of oil per day (BOPD) and has to date produced more than 1600 barrels of oil since being put into production in early June 2013.
- On May 9, 2013, Treaty Energy announced that it had signed a binding Letter of Intent (LOI) with U.S. Fuels, Inc. of Breckenridge, Texas to explore and drill five leases that cover 1,830 acres in Texas. With the execution of this agreement, Treaty Energy will have the capability to drill dozens of new wells in Texas. The new wells will be state-of-the-art and hold greater promise and longevity for Treaty Energy and its shareholders.
- After the success of the Mitchell lease, Treaty Energy Corporation announced that it had acquired a working interest in the rework of the Standard lease (Standard #2 well). The Standard lease, which is located across the street from the Mitchell lease, is expected to provide a high return on investment for Treaty Energy. Should the Standard #2 well prove to be successful, Treaty Energy will expand operations to include the other four wells on the lease.
- In early 2013, Treaty Energy Corporation reorganized its wholly owned Texas subsidiary, Treaty Energy Drilling, LLC. Treaty Energy Drilling has been refocused to provide contract drilling and completion services for third party vendors. Since reorganizing, Treaty Energy Drilling has secured four drilling contracts and become part of the Company's efforts to diversify its revenue stream. The Company hopes to expand Treaty Energy Drilling's operations in Q3 and Q4 of this year.
- Overseas, Treaty Belize Energy, Ltd. began drilling San Juan #3. San Juan #3 will be the Company's third exploratory well in Belize. Treaty Energy will likely announce the results of this well within the next month, in full cooperation with the Government of Belize.
New Lease Acquisitions and Plans Moving Forward:
Treaty Energy Corporation has secured the assignment of two additional leases from U.S. Fuels, Inc. of Breckenridge, Texas. After successfully drilling and completing the first two leases assigned from U.S. Fuels on the Mitchell lease, U.S. Fuels will now assign two additional leases to Treaty Energy. The two additional leases are located on a 20 acre track on the Murl Unit (which is also known as the Stroebel lease) and a 20 acre track on the Stockton Lease. The Stockton lease is independent of the LOI signed between the two companies.
The Murl Unit has a gas well that is currently producing 80 mcf a day and some high gravity oil (54 API). Initially drilled in 1994, the Murl Unit received an initial production flowing (IPF) rate of 1,730 mcf per day (CAOF 6,500 MCFD). 3-D seismic data acquired by Treaty shows this particular field holds high ROI potential. This seismic data has already prompted Enserch to invest over one million dollars into a pipeline to service this well and any other potential wells on the lease.
The original drilling operator of the Murl Unit had a gas company come out to test the lease. The gas company failed to follow proper procedures and significantly damaged the well in the process, creating a water cone formation. Following the damage, the well was shut in and a second well was not pursued. U.S. Fuels acquired the well, set a bridge plug over the zone and shot a small 1ft streamer into the well, restoring it to production status. The reworked Murl Unit initially pulled 350 mcf per day and now produces approximately 80 mcf per day, 19 years later with no additional treatment. Treaty Energy plans to drill a new offset well down to an approximate depth of 4,000ft. to re-enter the same zone which had a recorded IPF rate of 1,730 mcf per day (CAOF 6,500 MCFD).
The 1994 completion report, along with some of the available seismic data, can be found on Treaty Energy's website located at: http://www.treatyenergy.com/sites/default/files/MurlWellInformation.pdf. The Company also provides two introductory videos to the Murl lease on the Treaty's media page: http://www.treatyenergy.com/media.
In addition to the Murl Unit, Treaty Energy will drill an offset well from the Mitchell #4 well on the Stockton lease. The Stockton lease is the lease adjacent to the Mitchell lease. Treaty Energy believes that this offset drilling project will be as successful as the Mitchell #4 well, which has produced approximately 800 barrels of oil since it was drilled on June 6, 2013. As announced on June 17, 2013, the Mitchell #4 well is producing 45-50 BOPD.
Treaty Energy is also in the process of hiring a secondary rework operator for the Standard lease. Operations were scheduled to begin approximately 4 weeks ago, but have been delayed due to the loss of an immediate family member on the project. The primary rework contractor will likely be unable to complete the Standard Operation for several more weeks. To address and allay this delay, Treaty Energy is locating a secondary contractor to improve completion times between projects and increase shareholders confidence.
Treaty Energy Corporation looks forward to updating shareholders on the progress of these operations as more information becomes available.
The complete Form 10-K filing for the period ending December 31, 2012 can be viewed at the following link: http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9374296.
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTCQB, the marketplace for companies that are current in their SEC reporting requirements. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company's filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
Treaty Energy Corporation
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 31, 2016 02:45 AM EDT Reads: 1,888
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 31, 2016 02:15 AM EDT Reads: 2,276
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 31, 2016 02:00 AM EDT Reads: 1,991
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 31, 2016 01:45 AM EDT Reads: 3,083
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 31, 2016 01:00 AM EDT Reads: 1,706
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 30, 2016 08:15 PM EDT Reads: 2,492
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Aug. 30, 2016 08:00 PM EDT Reads: 1,930
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 30, 2016 08:00 PM EDT Reads: 2,036
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Aug. 30, 2016 07:15 PM EDT Reads: 383
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 30, 2016 07:00 PM EDT Reads: 938
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Aug. 30, 2016 06:15 PM EDT Reads: 382
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 30, 2016 05:45 PM EDT Reads: 3,596
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 30, 2016 05:00 PM EDT Reads: 907
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 30, 2016 04:15 PM EDT Reads: 978
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 30, 2016 03:30 PM EDT Reads: 3,785