Treaty Energy Corporation announces the Signing of a Letter of Intent with TNC Energy
The Company has signed an LOI for the Funding and Development of its recently acquired Leases in Sabine Parish, Louisiana
NEW ORLEANS, Oct. 31, 2012 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), a growth-oriented international energy company, announced that it has signed a Letter of Intent with TNC Energy to Fund, Develop, and Produce all leases and wells recently purchased by Treaty Energy located in Converse, La. (Sabine Parrish).
Under the terms of the proposed agreement TNC Energy will provide all development funds necessary to bring into production the 50 existing wells, as well as the drilling of additional wells upon completion of the work overs.
TNC Energy has related to the Treaty Energy management team, that their engineers have estimated production levels of up to 600 bbls/day out of the 50 existing wells after completion of the work overs.
Work over cost are estimated at $15,000 per well and completion time for all wells is expected to take approximately 3 to 4 months. TNC Energy is currently on site and proceeding with the work over of the wells. Treaty Energy Corp will not be responsible for any other investments in the venture nor any other operational responsibilities.
Andrew Reid, Co-CEO of Treaty Energy Corp., stated "I am pleased to have Treaty Energy join in this joint venture with a well-capitalized group like TNC Energy. If estimated production levels are achieved, this JV could add up to 240 bbls/day of prime Louisiana light oil to Treaty's daily production."
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