|By PR Newswire||
|August 29, 2014 06:45 AM EDT||
NEW ORLEANS, Aug. 29, 2014 /PRNewswire/ -- TREATY Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today reported that its Board of Directors is pleased to announce the following update and vision statement to its shareholders and the investment community.
Chris D. Tesarski, Executive Chairman and CEO of TREATY Energy Corporation, stated, "September 1, 2014 marks the beginning of a new chapter in the history of TREATY Energy."
The corporation has signed a LETTER OF INTENT with a private service company, "PRIVCO" to "liberate the oilfield service" assets of TREATY Energy into "PRIVCO" as part of the process to build an exciting, diverse and growth oriented full service company dedicated to optimizing and enhancing oil and gas operations in "the Americas."
Of particular interest to TREATY shareholders will be the fact that PRIVCO has an executed JOINT VENTURE AGREEMENT with a downhole tool company whose patented process has been credited with optimizing and enhancing production on several hundred wells in Canada, Mexico and the United States. This process when paired with TREATY's oilfield services unit, will not only give PRIVCO the ability to optimize TREATY's production, but also allows PRIVCO the ability to service other clients. This business arrangement comes with a built in network of six NATIONAL distributors that have been integral in marketing the tool that will now be important to building an opportunity platform for the TREATY oilfield service assets.
In addition, PRIVCO has acquired 50% of the interest of SANDBOX RESOURCE SOLUTIONS LLC of Abilene, TX. "SANDBOX" has developed a proprietary process for converting "produced formation water" from oil and gas wells into fresh water suitable for a wide variety of applications including oilfield service, agriculture, and many other uses. The SANDBOX water management system is being used commercially by a Denver-based energy company to integrate into a constructed wetlands project North of the Yellowstone River in Montana that utilizes the treated formation water from an oil battery to provide fresh water for cattle, wildlife, and oilfield applications. Water hauling costs on this project have been reduced by approximately $3,000 per day. Over thirty five to forty water-hauling trucks per week have been reduced to three.
TREATY will incorporate the SANDBOX water processing system into its "Stockton" field operations. Initial drilling reports indicate the presence of oil but also significant quantities of water. The decision was made to "go uphole". Unfortunately, this decision rendered the well basically unproductive. TREATY's technical team believes that if they recomplete the well in the lower water bearing zones they can significantly increase oil production. The SANDBOX system will allow the company to produce significant volumes of fluid without the cost of drilling an injection well. The recycled water will have significant value in drought stricken West Texas.
In speaking about the PRIVCO opportunity Mr. Chris Tesarski, Chairman & CEO of TREATY, stated "TREATY shareholders will be pleased to note that the integration of the PRIVCO service platform will now allow the "500 Well Louisiana Project", "Project X" (certain contract opportunities in Central America and the Caribbean), and reinvigorated GEOTECHNICALLY DEFINED operations in Belize to move forward, thereby restoring the opportunity for TREATY shareholders to see value derived from what was a previously difficult chapter in the history of the company. The combination of new management and technically qualified industry personnel in TREATY and PRIVCO will allow value to be realized that had for the most part been written down by the markets and shareholders alike."
"PRIVCO's commitment to integrating a full service operation into TREATY's growth oriented production platform and the ability to network its services to a growing number of energy companies in the Americas make this transaction a very attractive one for TREATY's shareholders," says Mr. Tesarski
PRIVCO is currently involved in the process of converting to a publicly traded company by completing the process of acquiring an existing public entity. Once again, the Board is convinced that this will provide significant additional value to TREATY's shareholders. PRIVCO and TREATY will keep shareholders apprised of developments as they occur.
As part of the changes in structure to the company the Board of Directors has negotiated a stock based dividend for all TREATY shareholders in PRIVCO. During a rollout period of the next 90 days, TREATY shareholders as of September 30, 2014 (or such date as the market regulators might determine), will receive shares of the common stock of PRIVCO at a rate to be determined subject to all regulatory approvals as are common to such transactions.
In keeping with the aforementioned transaction and the commitment of the Board of Directors to increasing shareholder value, the company will undergo a process of defining TREATY's identity as an ENERGY PRODUCER. Rooted in a firm belief that the "Americas" hold vast untapped, bypassed and forgotten energy reserves the company intends to continue its focus on "finding new oil and gas in old places."
"We believe that this is the right place for us to be and welcome other players who focus on exploratory, wildcat plays, but TREATY will continue to focus on what we KNOW got left behind instead of risking shareholder value on what we believe MIGHT be there," says Mr. Tesarski.
To this end, the company wishes to announce the signing of three (3) new leases (defined by 3D seismic) in the Tuscola, TX area, not far from its Stockton operations. These leases will give the company the ability to integrate PRIVCO's service platform into operations thereby giving TREATY a strategic advantage in developing its production operations. In addition to the 3D seismic, TREATY has access through PRIVCO to thorough geotechnical data to assist in making strong, technically sound strategic development and optimization decisions with regard to its operational platform.
"TREATY shareholders have stuck with the company through some very difficult times. Liberating the oilfield service assets of TREATY and partnering with PRIVCO will lead to strong growth for our shareholders in two dynamic companies. A reenergized, reorganized and vibrant energy company and a new, visionary, and technology savvy oilfield service company. With both companies committed to a strategy of integration, the Board sees this as a tremendous step forward" stated Mr. Tesarski. He added, "It is time to ensure that our shareholders are rewarded for their loyalty to the company."
As promised, as of August 27, 2014, the company has officially engaged auditors to begin to undertake the process of bringing the company into regulatory compliance.
"I am relieved that we have been able to now fully engage in the process of getting our company into compliance," said Mr. Tesarski. "It has been my number one priority. I have promised this to shareholders and they deserve nothing less than a 100% commitment to compliance."
In addition, the Board wishes to assure shareholders that the company will commit to providing them updates on or around the 15th and 30th days of the next few months following this announcement utilizing its social media resources while it transitions the company through this reorganization and growth phase. The Board looks forward to continuing to provide its shareholders with positive developments in this new chapter in TREATY's history.
Treaty Energy Corporation
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.
About Sandbox Resource Solutions LLC
Sandbox Resource Solutions is a privately owned company dedicated to meeting your produced water requirements. Our Resource Management System, "RMS" is engineered to remove oil, solids, iron sulphides and hydrocarbons and is proven to be more efficient and cost effective than traditional methods. SRS is applying a patented proprietary technology to treat produced oilfield wastewater into useable, fresh water. Our ground breaking technology is a 2 part system designed to reduce and reuse our most precious resource, water. Micro-Encapsulating Flocculent Dispersion ("MFD") and desalination allow us to optimise and maximize our natural resources. The company's focus is to deliver produced fresh water and subsequent by-products from its processes, which will be suitable for commercial, industrial and agriculture sustainability while reducing the strain on our natural resources.
Treaty Energy Corporation (TECO) trades on the OTC. 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.
SOURCE Treaty Energy Corporation
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