|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
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Jun. 1, 2016 12:00 AM EDT Reads: 1,805
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
Jun. 1, 2016 12:00 AM EDT Reads: 2,511
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
Jun. 1, 2016 12:00 AM EDT Reads: 1,247
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
May. 31, 2016 11:30 PM EDT Reads: 921
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
May. 31, 2016 11:15 PM EDT Reads: 2,247
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 31, 2016 11:15 PM EDT Reads: 1,041
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
May. 31, 2016 11:00 PM EDT Reads: 3,344
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
May. 31, 2016 10:45 PM EDT Reads: 3,276
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 31, 2016 10:30 PM EDT Reads: 1,004
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 31, 2016 10:00 PM EDT Reads: 2,767
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
May. 31, 2016 10:00 PM EDT Reads: 1,828
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
May. 31, 2016 09:00 PM EDT Reads: 2,134
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
May. 31, 2016 07:15 PM EDT Reads: 1,915
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
May. 31, 2016 06:45 PM EDT Reads: 1,185
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
May. 31, 2016 05:00 PM EDT Reads: 2,154