Treaty Energy Updates on Belize Princess Concession
Treaty Energy Updates on Belize Princess Concession
Company Announces Contract with RedRock Exploration, Inc. to Provide Management and Geological Consulting Services on Belize Oil Projects
NEW ORLEANS, March 23, 2012
NEW ORLEANS, March 23, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), a growth-oriented international energy company, reports that Andrew V. Reid, its Chairman and Co-CEO is pleased to provide an update on Treaty's Belize operations on the Princess Concession.
Treaty Energy's stakeholders will find the following information either attached or linked to this release.
- A letter from the Princess Petroleum, Ltd Executive Director, Hamdi Karagozoglu, to Belize Geology and Petroleum Department updating the status of the SAN JUAN #2 and SAN JUAN #1 wells is reproduced below as Exhibit A. Go to the following link to view the original of the letter on the Treaty website: http://www.treatyenergy.com/files/Belize_Dept.pdf
- A letter from Treaty Energy's Chairman, Andrew V. Reid, to Princess Petroleum. Ltd's Executive Director, Hamdi Karagozoglu, outlining a contract that Treaty signed with RedRock Exploration, Inc., is reproduced below as Exhibit B. An SEC Form 8-K filing will be made today on this significant event and will include the contract with RedRock Exploration, Inc.
The Company indicated that Max Mohamed, President of RedRock Exploration will be taking residence in Belize to oversee all operations there for Treaty Energy. Max will answer to Treaty leadership, Andrew V. Reid, Bruce Gwyn, and Treaty Energy's President, Stephen L. York.
You will find information on Max Mohamed's background and experience below. Max was on site during the drilling of SAN JUAN #2 and made the assessment of the mudlog that shows of oil were found, a result that was announced by Treaty without prior approval of the Government of Belize, which the Company hereby acknowledges was a mistake on its part to do so without prior approval from Andre Cho, head of the Geology Department, and/or Hon. Gaspar Vega, Deputy Prime Minister and Minister of Natural Resources and the Environment.
Mr. Reid stated, "I am excited to have Max Mohamed and RedRock Exploration working with Treaty and look forward to quickly moving forward in Belize as we take delivery of our new 'wire-line logging truck and equipment' and get the large Schramm Rig that we already have in Belize working on the Stann Creek Field to move forward with the drilling of SAN JUAN #1."
Max Mohamed – Geologist - Bio of Background and Experience:
Max Mohamed is an independent oil and gas consultant and partner in three small independent oil and gas companies with assets in U.S. South Texas, (primarily the Austin Chalk), Central Oklahoma, and North East Kansas. He currently serves as Vice President at Texokan Operating and President at RedRock Exploration. He is also sole owner at Advanced Geological Services, a mudlogging and wellsite consulting company operation in Texas and now establishing a presence in Belize.
His prior positions include Vice President at Stonegate Operators where he was responsible for production and development of assets in the Austin Chalk and San Miguel plays in South Texas. Prior to his position at Stonegate, Max served as Geologist at Knight Energy where he was responsible for evaluating and developing assets in the Fort Worth Basin/Bend Arch plays in Stephen and Eastland counties. He has also worked on projects in the Permian Basin (West Texas and New Mexico) and the Barnett Shale of North/Central Texas. Max also worked for several mudlogging companies including Core Laboratories and NL Bariod in the Permian Basin areas, and recently for Alpha Mudlogging and Advanced Geological Services in the Barnett Shale play of North Texas. Positions include wellsite consulting as well as mudlogging.
Max uses Landmark, Petrel, Petra, Drillinginfo and a variety of geoscience application to integrate data to comprehensive, consistent interpretations. Max has work on reserves evaluations, exploration assessments, reservoir characterization studies, property valuations, equity determinations, and data room projects.
He has extensive experience in probabilistic resource estimation and risk analysis and frequently evaluates prospects individually and at the play or company portfolio level. Max has frequently worked with direct5o hydrocarbon indicators, including Digital Spectral Satellite Imaging (micro-seepage) techniques.
Max studied Geology at Sul Ross State University in Alpine, Texas and at the University of Texas at the Permian Basin (UTPB) in Odessa, Texas. He also received a diploma from Jones International University where he studied Negotiations and Conflict Management.
Max completed technical training in Hydrocarbon Well Logging (Mudlogging) at Core Laboratories, and Oracle PL/SQL at Oracle Corporation.
Exhibit A - Letter from Princess Petroleum, Ltd to Belize Geology and Petroleum Department
Wednesday, February 22, 2012
Geology and Petroleum Department
Ministry of Natural Resources and the Environment
Government of Belize
Belmopan City, Belize, C.A.
Pursuant to Part V, Paragraph 16(4) of the Belize Petroleum Regulations, Princess Petroleum hereby submits its notification and update on its drilling activities, in Stann Creek, as it relates to "San Juan #1 & San Juan #2" Wells.
San Juan #2 – The well was drilled to a total depth of 1,300 Ft on Friday, January 27th, 2012. We believe we encountered positive hydrocarbon shows between 1,235-1,250 ft. At this stage, we are in complete agreement that a set open-hole logs with induction and porosity curves is necessary to further assess this show, and to determine if further completion efforts are prudent. We currently have a logging truck being configured with the necessary tools, but because of the extended time required by the US Homeland Security for radioactive materials, we have opted to proceed without a neutron porosity tool. Instead, we will determine porosity with the use of acoustic tools. This logging truck is expected to be ready sometime this week, and should be ready for shipment to Belize soon.
San Juan #1 – Our original process was to move from San Juan #2, once drilling was completed, directly to San Juan #1. After evaluation it has been decided we should drill to a depth of at least 4,000 Ft. The rig used for the first well is only capable of drilling to 2,000 Ft. We have a rig on site that will drill to over 6,000 Ft. We currently have a group evaluating and making minor repairs in preparation for the restart of the San Juan #1 well. We expect all repairs to be completed, and drilling to restart within 14-20 Days from today.
Treaty Energy currently has all equipment necessary to completer San Juan #2, either in Belize or en route, and would be able to complete if deemed prudent after review of all logs.
/s/ Hamdi Karagozoglu
Hamdi Karagozoglu, Executive Director
Princess Petroleum Ltd.
Exhibit B – Letter to Princess Petroleum from Treaty Energy
To: Hamdi Karagozoglu
Princess Petroleum Ltd.
From: Andrew V. Reid
Treaty Energy Corporation
Re: Treaty Energy has retained the services of RedRock Exploration for Belize Operations.
RedRock Exploration is pleased to provide this letter detailing our suggested plan for assisting Treaty Energy Corporation in the Belize Exploration Project.
This document is intended to outline our approach and outputs as well as the proposed time schedule and cost.
OUR UNDERSTANDING AND PROPOSED APPROACH
Treaty Energy Corporation has recently kicked off a project to explore for hydrocarbons in the country of Belize. In an effort to augment its technical competencies in Belize, Treaty Energy Corporation wishes to engage the services of an experienced Management and Geological Consulting service provider to work with its local team to provide the following:
- Management: Manage the relationship, and provide liaison between Treaty Energy and the Belize Department of Petroleum. This includes ownership and responsibility for ensuring all drilling, completion and other geological reports are submitted in an accurate and timely manner.
- Geological Services: Provide technical advice and guidance during all phases of the exploration effort. This included staking location, preparing drilling prognoses, and performing mudlogging services. Prepare and maintain maps and sections of all wells, and other available geological information.
- Mudlogging: RedRock Exploration will retain the services of Advanced Geological Services to perform all mudlogging services. All supplies used in the mudlogging services shall be provided by Advanced Geological Services. Copies of mudlogs and daily drilling reports shall be presented to Treaty Energy and the Belize Department of Petroleum.
- Post-Drilling Support: Provide guidance and assistance during all open-hole and cased hold logging efforts. Evaluate the electric logs and provide guidance and support during stimulation and completion phases.
- Production Support: Provide assistance in pump and rod designs.
The Engagement would be overseen by Max Mohamed. Max is a Principal with RedRock Exploration, and will oversee project structuring, liaison with senior Treaty Energy Corporation executives, conduct the assessment and complete the proposed work and deliverables.
To support Treaty Energy Corporation in this initiative, our estimated time and consulting rates are:
This estimate does not include travel and out-of-pocket expenses, which will be filled at actual expense incurred. We will bill Treaty Energy Corporation net 30 at the end of each calendar month that work is performed. Airline tickets and accommodation in Belize shall be provided by Treaty Energy Corporation. Payments are due in advance of the first day of each month.
The project work will commence on or about March 1, 2012 and will extend for a period of twelve (12) months, expiring on February 28, 2013.
RedRock's experience and technical competence will enhance the relationship and trust between the Government of Belize and Treaty Energy Corporation by helping to ensure project deliverables remain on target.
We are excited about the opportunity of working with you and continuing to build a relationship with Treaty Energy Corporation. If you have any questions, please contact me.
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.
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