Treaty to Boost Production at Tx. Leases

- Treaty to Boost Production at Tx. Leases

Thursday, September 08, 2011
Treaty Energy Corp.

Treaty reported on its progress on the project to increase production on its Texas oil leases.

Stephen L. York, President and COO of Treaty Energy Corporation, stated, "We want our shareholders to know that our team has faced the hottest and driest summer in Texas since 1980. The extreme heat and dry climate have considerably affected ground conditions. These conditions have caused failures of equipment and electrical transformers which have led to a decline in the overall production on our existing wells."

Mr. York added, "However, the good news is that Treaty Energy's aggressive work-over plan has been able to offset the decline in production and has even greatly increased the production of the re-worked wells."

"Production on the first eight wells that have been re-worked increased from 8 barrels of oil per day to 26.5 barrels per day," explained Mr. York. He explained further, "Treaty Energy has also recently finished re-working an additional eleven wells, and after about a week of steady production, we are expecting to increase production to about 55 barrels of oil per day."

Treaty Energy has four other leases that are currently not producing as they require a work-over on the injector wells and electrical power lines. Work-over of these leases should be completed by the end of September and is expected to increase overall Texas production to 65 to 70 barrels of oil per day by that time.

Beyond the previously mentioned work-overs, Treaty Energy has 15 shut in wells spread over the Great Eight Leases that have been shut in for more than 12 months. Upon completion of all scheduled work-overs, the Company will then be able to more accurately evaluate the additional shut in wells and re-work them as necessary to bring them back into production.

Mr. York added, "The best estimate of Texas production on the currently owned and paid for leases will be 75 to 90 barrels of oil per day after the rework of the 15 shut in wells. Our goal by the end of 2011 is to be at 200 to 350 barrels of oil per day. This production number can vary based on the number of new wells that are expected to be drilled and completed. We expect to exceed 1,000 barrels per day by the end of June 2012. At $80 per barrel, this will translate to about $29.2 million in gross revenues annually from our Texas oil production alone."

CEO of Treaty Energy Corporation, Andrew Reid, stated, "I am pleased with the current production in Texas and noted that all re-works are being done from the bottom of the well to the top, including pressure testing of the tubing prior to re-installation in the wells. This type of work-over may initially cost more and require more time, however Treaty expects to avoid the higher operational costs that can be associated with stripper wells when using the traditional band-aid methods. Treaty's wells, once worked-over, will require much less maintenance compared to the average stripper wells."

Finally, Mr. Reid said, "We plan to release an update in the week of September 12th on the progress in Belize regarding the first well that we are expecting to drill later this month."

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Treaty Updates Belize Operations

- Treaty Updates Belize Operations

Tuesday, August 30, 2011
Treaty Energy Corporation

Treaty Energy Corporation, a growth-oriented energy company in the oil and gas industry, today reported on its continued progress on the Belize project.

Treaty Energy is pleased to provide the following updates on projects that the Company is working on in Belize.

1) The surface lease agreement has been signed in partnership with one of the largest landowners in Belize, which covers a significant percentage of the 200,000 acre land portion of the concession.

2) The environmental approval for drilling of the two initial wells has been signed by Mr. Martin Alegria, Director of the Belize Ministry of the Environment and on file.

3) The passage way through a stream/ditch has been completed and pictures have been posted to Treaty Energy's Website, Twitter and Facebook sites. Continue to look for company updates, news and pictures on these sites

4) A roadway has been cut and cleared to the first drilling site and the well pad prepared.

5) All equipment cleared customs after approximately three weeks of paperwork and relocated to a secure site until our permanent 10 acre compound is ready to accept the equipment and become our established staging location near the Town of Independence. This Compound will include staff lodging; in addition, all buildings are being constructed by local craftsman at a very reasonable rate.

6) Mr. Keon Garbutt, a Belizean citizen, has been hired as Project Manager of the drilling operations in Belize for Treaty Belize Energy, Ltd.

7) Brian Luczywo has been promoted to Treaty Belize Energy Vice President of Operations.

The following is an update from Mr. Luczywo as of August 24th.

The Treaty Belize Energy office in Placencia is up and operating. In addition; our recently hired personnel and support staff are doing an excellent job. We have been busy getting our office functional. The following work has been completed:

Selected an office location key to the planning, implementation and coordination of the details of our day to day operations in Placencia

General maintenance repairs and upgrades to facility. Furniture and accessories delivered and suitable for office personnel

Central Air Conditioning installed in office and conference room. Internet, local phone, fax, US phone all installed and operational

Regular expense reports, accounting, banking, and communications back to the United States has been established

All project expenses brought under administration by the Belize office

Excitement is building in the area and Treaty Belize Energy is experiencing an influx of job applicants. We are currently building a database of names from which we will examine and determine the best qualified persons to ask and join the Treaty Belize Workforce

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Treaty to Work-Over Tx. Wells

- Treaty to Work-Over Tx. Wells

Monday, August 01, 2011
Treaty Energy Corp.

Treaty Energy reported on activities of C&C Petroleum Management LLC, the Company's Texas operations subsidiary, related to increasing oil production from its Texas leases.

Stephen L. York, President and COO of Treaty Energy Corporation, stated, "I recently made arrangements to contract three work-over rigs to commence work beginning this past Saturday, July 30th on our Texas leases. We will work-over 14 wells in the next two weeks."

Mr. York added, "I've also purchased pump parts, barrels, seals, cups and other items to allow us to rebuild pumps on our Texas properties. Purchased items include drifted and tested tubing to replace defective joints that are found."

C& C Petroleum has also contracted an electrician to revamp circuit boxes on the McComas Lease to handle additional electrical supply needs on this lease and has requested bids on water storage tanks for the Company's Willingham Lease.

Mr. York commented, "These rework activities are expected to increase our oil production by 300-420 barrels per month over the next two weeks, to about 1500 to 2000 barrels per month. While our stated goal is to bring our Texas oil production to 30,000 barrels of oil per month as soon as practical, the economical steps being taken at this time are crucial to us meeting our long term goals in Texas."

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Treaty Preps for Belize Drilling Program

- Treaty Preps for Belize Drilling Program

Friday, July 29, 2011
Treaty Energy Corp.

Treaty reported on developments in Belize leading up to the implementation of its initial eight well drilling program.

Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, stated, "We are pleased to confirm that all things requested of Treaty by both the Belize Ministry of the Environment and Department of Petroleum have now been completed and provided to the proper Belizean agencies. In addition, we are elated that the Director of the Ministry of the Environment has signed off on our environmental checklist, and has confirmed that Treaty may move forward and drill the initial two wells of the eight well drilling program."

Mr. Martin Alegria, Director of the Belize Ministry of the Environment advised Treaty Energy and Princess Petroleum at a recent meeting that they should have the ECP (Environmental Compliance Plan) complete and up to date so that after the first well is drilled (and given that there is a commercial find) the EIA (Environmental Impact Assessment) will take minimal time to be approved so that production may commence.

To accelerate this process the Company has contracted an attorney from BNE to assist in finalizing the surface rental agreement for planned drill sites. Treaty will communicate directly with the land owner to finalize the rental agreement. Furthermore, a local surveyor under contract with Treaty will complete the survey for our initial drill site this week.

Mr. Reid went on to say, "Our stakeholders are reminded that we have established Treaty Belize Energy, Ltd. in May 2011 and located our corporate office in Belize City. In addition, we also equipped a field operations office in Placencia, Stann Creek District, Belize, close to the drilling sites to be developed, which are a three hour drive south of Belize City."

Treaty Energy has had meetings with a number of community leaders in areas where the Company intends to drill and is pleased to report that these community leaders are uplifted and energized with our intent and in particular that Treaty will be providing employment opportunities for numerous local Belizean's.

In conclusion Mr. Reid stated, "Ongoing developments and significant preparation in Belize are proving advantageous to a successful drilling program. Upon arrival of the drilling rig and support equipment by sea on July 27th our Company is moving ahead with an oil program that holds the potential to be a magnificent life changer for all Treaty stakeholders and the people of Belize."

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Treaty: Drilling Rig Arrived in Belize

- Treaty: Drilling Rig Arrived in Belize

Wednesday, July 27, 2011
Treaty Energy Corp.

Treaty reported the Drilling Rig and support equipment have arrived in the port of entry in Belize.

Stephen L. York, President and COO of Treaty Energy Corporation, stated, "All the equipment shipped by sea last week has arrived safely at the port of entry in Belize and we have arranged for our toolpusher/rig manager and drilling supervisor, W D Harden to arrive in Belize and be on site to supervise the un-loading and reassembly of the rig."

Mr. York added, "In addition to reassembling the rig Mr. Harden and Treaty Belize Energy employees will be coordinating services with third party companies related to the drilling of our initial well sites and securing all our equipment to their proper locations. Today Treaty Energy has moved one step closer to implementing our drilling program to extract commercial grade quantities of oil in Belize."

In summary, the equipment in this shipment to Belize by sea out of Mobile, Alabama included the following: Drilling Rig, Bulldozer, Backhoe, Fuel Truck, and 28 foot Flat Bed Truck.

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Treaty to Move Forward with Belize Drilling Program

- Treaty to Move Forward with Belize Drilling Program

Monday, July 18, 2011
Treaty Energy Corp.

Treaty Energy Corp. on Monday reported on developments in Belize leading up to the implementation of its initial eight well drilling program.

Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, stated, "We are pleased to confirm that all things requested of Treaty by both the Belize Department of Environment and Department of Petroleum have now been completed and provided to the proper Belizean agencies and approved. In addition, we are elated that the Director of the Ministry of the Environment has signed off on our environmental checklist and now confirmed that Treaty may move forward and drill the initial eight wells identified by location in our drilling program."

Mr. Reid stated, "The Belize Minister of the Environment indicated that we should deliver the EIA report forthwith and prepare to immediately produce oil from the first well once drilling is completed. To accelerate this process we have retained an attorney from BNE to assist Treaty in finalizing the surface rental agreement for planned drill sites and communicate directly with Sir Manuel Esquivel and Board of Directors of the land owner. Furthermore, a local surveyor under contract with Treaty will complete the survey for our initial drill site this week."

Mr. Reid went on to say, "Our stakeholders are reminded that we established Treaty Belize Energy, Ltd. in May 2011 and located our corporate office in Belize City. In addition, we also equipped a field operations office in Placencia, Stann Creek District, Belize, close to the drilling sites to be developed, which are a three-hour drive south of Belize City."

Treaty Energy has had meetings with a number of community leaders in areas where the Company intends to drill and is pleased to report that these community leaders are uplifted and energized with our intent and in particular that Treaty will be providing employment opportunities for numerous local Belizeans.

In conclusion, Mr. Reid stated, "Ongoing developments and significant preparation in Belize are proving advantageous to a successful drilling program. Upon arrival of the drilling rig and support equipment by sea on or about July 24/25, our Company will move ahead with an oil program that holds the potential to be a magnificent life changer for all Treaty stakeholders and the people of Belize."

Treaty 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.

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Treaty Finalizes C&C Acquisition

- Treaty Finalizes C&C Acquisition

Thursday, July 07, 2011
Treaty Energy Corp.

Treaty Energy has fully paid off the acquisition of C&C Petroleum Management LLC.

Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, commented, "As of June 25, 2011, the C&C Petroleum Management LLC, acquisition was paid in full. We are all excited here at Treaty that we could accomplish the payoff of this acquisition eight months early and ahead of schedule. The $600,000 purchase price of C&C Petroleum was paid utilizing a combination of cash and stock. I am very pleased to have paid this acquisition off in the second quarter."

Mr. Reid commented further, "Our team at Treaty Energy continues to work diligently and earnestly to accomplish dramatic improvements in our company's net worth and operating profits, and this early payoff of the C&C acquisition and numerous other positive financial events will be reflected in our soon to be announced 2Q results."

Finally, Mr. Reid commented, "Treaty Energy stakeholders will see remarkable improvements in every aspect of our company over the balance of this year."

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Treaty Buys Equipment for Belize Drilling Proj.

- Treaty Buys Equipment for Belize Drilling Proj.

Thursday, June 23, 2011
Treaty Energy Corp.

Treaty announced the purchase of several pieces of machinery that will be sent to Belize in early July.

Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, stated, "The major piece of equipment that we have purchased is a much larger drilling rig that is capable of drilling to depths of 6500 feet. We will post pictures of this new rig along with its specifications to the Treaty Energy website in a few days."

Mr. Reid stated, "The reason for this purchase was two fold: first, the Schramm 450 Drilling Rig originally purchased to go to Belize will need more work than our time line permits. That rig will be used in Texas when refurbishment is completed; and second, current studies by Treaty's group of geologists, well locators, and satellite surveyors suggest the possibility that deeper pay zones could exist and this rig will be capable of exploring those deeper pay zones at a later time, after the more shallow wells are drilled and producing."

Mr. Reid went on to say, "We have acquired equipment for well pad construction and road construction to the well sites. This equipment consists of: a New Holland B95 Backhoe; and a 2006 D4G Caterpillar Bulldozer. The final purchase is a crew truck to replace the rental vehicle that has been used over the past months. This vehicle is a Chevrolet Duramax Diesel Crew Cab 4WD Pick Up."

Treaty indicated that all of the above equipment will be shipped by sea to Belize out of Mobile Alabama with a planned departure date of July 10, 2011. The shipment will go directly to Belize with a scheduled travel time of five days.

In conclusion Mr. Reid stated, "Because of the rapid pace of events in Belize, our stakeholders can expect frequent updates on this project as all such updates are now becoming extremely important."

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Treaty Pays Final Installment for Tx. Rig, Updates Operations

- Treaty Pays Final Installment for Tx. Rig, Updates Operations

Thursday, June 16, 2011
Treaty Energy Corp.

Treaty updated its stakeholders on drilling progress in Texas.

Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation, stated, "I am extremely pleased to announce that on Wednesday of this week we made the final payment on the Failing 1500 CF Truck Mounted Drilling Rig that was purchased in mid-April to drill wells on the Treaty owned Texas leases."

The purchase price for the Failing 1500 CF Rig and all related components, including all current drilling contracts for this Rig, was $180,000, as detailed in the Company's Form 8-K filing with the SEC on April 20, 2011.

Mr. Reid added, "This Rig has been drilling constantly since being acquired under drilling contracts with independent oil companies, and has a backlog of several more wells to drill and the possibility of a large contract to be agreed to during the next few days." He added further, "Demand has been so intense for this Rig that we are in discussions with Stephen L. York, President and COO of Treaty, to add a second rig for our Texas operations. This would bring the Treaty owned rigs to three should the discussions be finalized to purchase the second Texas rig."

Treaty's drilling company, Treaty Energy Drilling, LLC, has been productively drilling wells for independent oil companies since mid-April and has already logged operational profits of more than $42,000 to date from these drilling contracts. As this drilling continues, the Company's drilling company will be starting a new well (spud in) for another independent oil company on Monday, June 20th.

Stephen York stated, "I have received inquiries to drill another 25 wells for Treaty Energy Drilling's top three customers."

Mr. York added, "The BARNES LEASE has been officially transferred to C & C Petroleum Management, LLC, Treaty's operations entity, and based on this transfer we have started processing all stored oil for sale to BLM Oil Transport. Our HENDERSON and LONG LEASES are awaiting transfer by the State of Texas RRC to C & C Petroleum Management, and I expect these transfers to be completed this week. In addition, all paperwork has been filed with the State of Texas RRC to initiate the transfers of the GREAT 8 LEASES to C & C, a process that should be completed within a week."

Mr. York stated further, "Oil pick ups have been scheduled with the Transporters. Upon initial receipt in the Transporters headquarters of the time and date stamped P4's from the Texas RRC, the transport trucks will commence the pickups. We are expecting to sell a minimum of 850 BBLS of oil in the month of June 2011."

In closing, Treaty Energy's CEO, Andrew V. Reid, stated, "I continue to be very pleased with our progress in Texas and look forward to updating our stakeholders on the Belize project very soon. I am also pleased to report that our Company will show revenues in this second quarter (2Q) of 2011 from both its oil production operations in Texas and from its contract drilling for a number of independent oil companies."

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Treaty Secures Rig for Belize Proj.

- Treaty Secures Rig for Belize Proj.

Wednesday, June 01, 2011
Treaty Energy Corp.

Treaty has acquired a Drilling Rig for its Belize oil project.

Andrew V. Reid, Chairman & CEO of Treaty Energy Corporation, stated, "Treaty Energy has made a final decision to drill the wells on the Belize concession using our own Texas-based drilling company, Treaty Energy Drilling, LLC."

Mr. Reid added, "Upon making the decision to expand our own drilling company and keep the drilling program in-house, we purchased a Schramm 450 Drilling Rig on a Chevrolet Flat Bed Diesel AWD platform, with a Sullair Drilling Compressor. This rig is capable of drilling to 4000 ft depth and therefore is suitable to the task of drilling all of the well sites that are currently in our Belize drilling program."

Treaty technicians and geologists expressed their opinions that based on findings an "air drilling" rig would be better suited to the areas that are to be worked as per the drilling program. The Schramm Rig is capable of drilling with air or mud, and thus provides the flexibility to drill with either method if faced with on site condition changes.

The Schramm Rig was purchased in Troy, Alabama and has been shipped to a Rig Service Center in Glenwood, Alabama for inspection and upgrades as needed, prior to June shipment to Belize.

Treaty Energy is in the process of acquiring a full complement of support equipment so as to be self sufficient and have complete oversight of quality control while drilling in Belize. These other components will be announced as the acquisitions are completed, most of which are within days of finalization.

In closing, Mr. Reid stated, "I am very excited that the Treaty board has taken an aggressive stance and made possible the acquisition of the Schramm Drilling Rig and the full complement of support equipment. Growing Treaty Energy Drilling, LLC, our own drilling company, is a significant step toward vertical integration of our oil and gas business."

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Treaty Adds Acreage in Tx.

- Treaty Adds Acreage in Tx.

Monday, May 23, 2011
Treaty Energy Corp.

Treaty Energy has acquired eight oil & gas leases in Texas, adding another 1347 acres to Texas lease holdings.

Stephen L. York, Treaty Energy's President and Chief Operating Officer, stated, "With this new addition, Treaty now has a total of 1787 acres under lease in Texas that are spread over 13 leases. We will provide the terms of this latest acquisition via a Form 8-K filing this week."

Mr. York adds, "Treaty will assume operational control of these leases through the Company owned operating subsidiary, C & C Petroleum Management, LLC, in early June after all appropriate documents are filed with the RRC of the State of Texas."

This new acquisition generally consists of the following:

• Eight separate leases totaling 1347 acres.
• Thirteen fully equipped and producing wells.
• Eighteen shut-in wells to be put back on line.
• Twelve injection wells.
• Four water supply wells.
• Eight individual tank batteries consisting of seventeen storage tanks, eight oil/water separators (two less than six months old) six water pumping stations, miscellaneous tubing, pipe, and casings.
• Current production of oil about 20 BOPD.

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Treaty Identifies Belize Drilling Locations

Treaty Identifies Belize Drilling Locations

Tuesday, May 03, 2011
Treaty Energy Corp.

Treaty Energy Corp. on Tuesday issued substantial information on the Company's progress in Belize.

Andrew V. Reid, Treaty Energy's CEO, indicated, "The first of several items issued today is that Treaty Energy Corporation has engaged a law firm in Belize City, Belize, for the purpose of forming a Belizean corporation to be named Treaty Belize Energy, Ltd. All of our business activities in Belize will be handled through this wholly owned subsidiary. As of May 2nd Treaty was told by our Belizean law firm that all filings were done and we are waiting on the 'Certificate of Incorporation' which we expect from the registry promptly."

Reid also explained that Treaty has selected five 'AREAS' as the first of innumerable well sites and has identified the first eight drilling locations that are to be drilled on the land portion of the Princess/Treaty Concession.

• AREA #1: Elevation – 108'
• AREA #2: This very encouraging location is right off Monkey River Road, and shows promise for many wells.This location was staked with one well location approximately 20' back from the seal on the oil side.  Due to lack of time on this formation further study will be done.  The one well is expected to be 1200' deep to the top of the formation.The Company has been informed by the geoscience team identifying these drilling locations that we can expect multiple wells on this formation at about 600' intervals.  

• AREA # 3:  This third formation is located near the end of Monkey River Road.  A well location has not been chosen on this location as of yet because it will require clearing certain areas to obtain access to specific drilling locations.j
• AREA # 4:  This fourth formation was along Southern Highway toward Punta Gorda.The first well staked is close to Southern Highway inside a guarded area that will be easy to drill.  The second well is located about 50' off a good dirt road.
• AREA #5: This fifth location is on Southern Highway in Medina Bank.

In conclusion, CEO Andrew Reid indicated, "We are now in the final process with regard to contracting a drilling company.  We are currently evaluating a highly qualified company out of Guatemala City, but other companies are also being considered, some of which are based in the United States.  It has been determined that an air drilling approach would be very successful in the areas that we will be exploring.  Since air drilling can be faster and would likely create less contamination and/or damage to the oil bearing formations, all factors are being considered prior to issuing the contract for the first well."

Treaty 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.

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Treaty's Tx. Lease Acquisition Delayed

Treaty's Tx. Lease Acquisition Delayed

Friday, April 29, 2011
Treaty Energy Corp.

Treaty announced an update to its announced "letter of intent" of April 12, 2011 to acquire producing oil and gas leases in Shackelford County, Texas.

The closing on this acquisition has been delayed until June 7, 2011 because of issues that had to be corrected by the seller on the leases being purchased.

Stephen L. York, Vice President of Acquisitions and Operations for Treaty Energy, stated, "Although we are disappointed over the delay of this acquisition, we are very pleased that all the issues are being corrected and the new closing date is now set."

Treaty Purchases 2 Producing Leases in Tx.

Treaty Purchases 2 Producing Leases in Tx.

Wednesday, April 20, 2011
Treaty Energy Corp.

Treaty Energy has acquired two additional leases in Texas, the SHOTWELL W. F. and the SHOTWELL "C" leases.

Treaty indicated that production on these leases is currently 4.18 barrels of oil per day. These leases require no work over and were purchased for their current production value, but more important to Treaty Energy is the additional 30 virgin well drilling sites which will be added to the list of wells that Treaty's new Failing 1500 CF Drilling Rig will start drilling when permits are granted to do so. Private financing to fund the drilling had been arranged prior to the acquisition of the Failing Drilling Rig.

Stephen L. York, Treaty Energy's Vice President of Acquisitions and Operations, stated, "These leases are two of the most advanced small leases in the Country. Scientific evaluations have been done as an experiment to see what can be achieved with a maximum effort and scientific approach. Fluid levels have been 'shot,' water flooding plains logged, and geology available."

Mr. York stated further, "The upside to this acquisition is that Treaty now has an additional 138 acres to drill on, which represents 30 or more virgin well sites."

Treaty Energy's CEO and Chairman, Andrew V. Reid, stated, "I am very pleased with the progress Steve is making on the development of Treaty Energy's rapidly growing base of leases and production of oil in Texas."

Treaty indicated that it will follow with an SEC Form 8-K on a timely basis, which will include all aspects of this purchase.