SOURCE: Treaty Energy Corporation
Treaty Energy Corporation to Acquire Oil & Gas Lease in West Texas
This Lease Is in Taylor County Texas and Includes 360 Acres With Three Existing Wells and Multiple Identified Drilling Opportunities
ABILENE, TX--(Marketwire - July 9, 2009) - Treaty Energy Corporation (
The Company intends to drill multiple additional wells on this lease in locations that have been identified by Infrared Survey showing hydrocarbon signatures that give reasonable assurance of successful holes.
This lease is currently under a Letter of Intent (LOI) that provides for a 90-day due diligence period, but the purchase transaction may be closed at anytime sooner with the consent of the parties. Full details of the transaction will be disclosed following closing.
As has been stated by Treaty Energy in prior releases, the Company considers this leasehold to be but a small step forward in the implementation of its growth strategy. The Company has identified several targeted lease acquisitions. Once this acquisition is complete and production from its existing wells has commenced, further study and plans to drill additional wells move forward.
This new lease is in compliance with Treaty's plan to acquire low risk development and value added leaseholds that will allow the Company to maximize its return on investment dollars per barrel of oil or mcf of natural gas recovered and sold. Treaty's current plan calls for the acquisition of additional small to mid-sized leaseholds at the rate of one per month for the foreseeable future. This is an aggressive program, but appears to be within the Company's reach.
About Treaty Energy Corporation
Treaty is engaged in the acquisition, development and production of oil and natural gas, primarily in the West Texas Permian Basin, but may expand this scope if suitable opportunities come to Treaty's attention. Treaty acquires and develops petroleum productive properties, many of which have "proven but undeveloped reserves" at the time of acquisition, that are economically beneficial and fit well into Treaty's program, but not strategic to large exploration-oriented oil and gas companies. This strategy provides Treaty with the proven assets to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. Treaty's headquarters are located in Abilene, Texas. For more information go to: www.treatyenergy.com
Forward-Looking Statements:
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 SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
