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Shared for information, with my name redacted for legal reasons.
Letters and Emails to and From Treaty Legal Representatives October 18th and 19th 2011
Letter
To: ************************ Belize City, Belize
From: ANDREW L. KRAMER, L.L.C.
ATTORNEY AT LAW Licensed in Louisiana & New York
201 St. Charles Avenue Suite 2504
New Orleans, LA 70170
Ph: 504.599.5623 Fax: 866.667.3890 Cell: 504.458.3456
www.kramerllc.com
akramer@kramerllc.com
Date: October 18, 2011
RE: Treaty Energy Corporation
**********:
Please be advised that I represent Treaty Energy Corporation (Treaty) and have been provided your email dated October 17, 2011 to Brian D. Luczywo, Vice President and International Comptroller of Treaty, to which we respond. As an initial matter, Treaty is under no obligation to allow you to post on its Facebook page. Indeed, Treaty has the absolute right to control its Facebook page and can remove anyone connected to the page at any time and for any reason. More importantly, your recent post on Treaty’s Facebook page that was removed was false and defamatory. Not only did your post violate Facebook’s Statement of Rights and Responsibilities, it is actionable under Louisiana law. Therefore, if you do not immediately cease and desist from further attempts to post defamatory comments on Treaty’s Facebook page or if you attempt to submit false claims to a governmental agency, we will promptly pursue all available legal action against you.
Sincerely,
/s/ Andrew Kramer
Andrew L. Kramer
Response to Treaty Letter by Email
From: **************** (**********@ymail.com)
To:akramer@kramerllc.com; areid@treatyenergy.com
Date / Time: Wednesday, 19 October 2011, 07:27 GMT-6
Subject: Treaty Energy Corporation Letter of October 18th 2011
Dear Sirs,
Thank you for your letter dated October 18th. I was surprised to get the attached letter from an attorney and not from someone on Treaty Energy Corporation's (TREATY's) technical staff.
I am sorry that you construed what I had posted on your Facebook site as false and defamatory. In my view, with the exception of one point I now know is false (see below), it is not false nor defamatory.
My intention of the posting was to provide technical advice and ask genuine technical questions about TREATY's future drilling operation in Belize. I am supportive of onshore oil drilling in Belize, outside protected areas, as long as it is performed using International Petroleum Industry standards as required by Belize's Petroleum Act of 2000.
As a voluntary Independent Oil Industry Advisor in Belize many third parties (including NGOs, local people and more recently TREATY shareholders) have approach me for my advice about the oil exploration and production process and more recently about TREATY's activity specifically. However one problem we are all having is getting any technical responses from TREATY.
So back to my posting - which is reproduced verbatim (and my objective analysis of it as either true or false and defamatory shown after each statement in brackets):
Thanks for the update photo (Complimentary - neither false nor defamatory)
The sign may be up but the rest of photo shows only a marked lack of readiness to drill (True - neither false nor defamatory - a visit to your well site yesterday shows that the drilling rig, a small bulldozer, a truck and a diesel engine/generator are just 'parked' there with one security guard and his tent. So this equipment is not ready to drill and the remaining equipment you need to drill is not yet onsite)
The concession Treaty are drilling on belongs to Princess Petroleum - their name should be on the sign too (True - neither false nor defamatory).
This is Treaty Energy's first exploration well and first operation outside the USA. So:
1) the drill pad looks too small (False - Your photo shows a too small wellsite but having visited your site yesterday, I admit it is not too small - but it still looks a little boggy in places)
2) the recently purchased rig is not yet upgraded to be suitable for oil exploration wells (the additional drilling and well control equipment required before spudding the well - including BOPs - must still be enroute thru Mexico) (True - neither false nor defamatory)
3) You haven't prepared a sump and set conductor pipe to help contain unintentional spillages from the well drilling operation (True - neither false nor defamatory)
The assertion in your letter that what I posted is false and defamatory is a serious allegation against me, which is not supported by my objective analysis above, so I would be grateful if you would back it up with:
1) An email showing which aspects of my posting are false and/or defamatory in your view
2) A copy of Facebook's Statement of Rights and Responsibilities which you allege that my posting violated
I await your response to the above with interest.
I have not yet involved any attorney's in this matter - and I hope that situation can continue dependent on your response to the above.
Email
From: Samuel Whitley <swhitley@whitley-llp.com>
To: ************@ymail.com
Date / Time: Wed, 19 Oct 2011 at 14:56
Subject: Treaty Energy Corporation
Dear **********:
Our Firm represents Treaty Energy Corporation. Brian Luczywo at Treaty forwarded to us your e-mails regarding Treaty's deletion of certain of your comments from the Company's Facebook page. In these e-mails, you also threaten to notify the Securities and Exchange Commission about certain statements which you believe are misleading if the Company does not reinstate your ability to post on Treaty's Facebook page. Treaty asked me to respond to your communications.
First, your threat to notify the SEC regarding Treaty, in exchange for consideration (i.e. reinstating your ability to post on Treaty's Facebook page) constitutes blackmail, which is a federal criminal offense. As a result, you may wish to reconsider this threat.
Second, the Company at all times has been forthright with its shareholders regarding all material Company matters, and therefore management is confident that any SEC inquiry would not result in any material consequences for the Company.
Third, the Company has no legal obligation to permit you to post to its Facebook page. In addition, the bullying, harassment or intimidation of any user is a violation of Facebook’s terms of service.
However, notwithstanding these points, we are happy to consider and distribute through the proper channels within the Company any comments or concerns you have regarding the Company’s policies or practices. Please send these to us for proper handling.
Thank you.
Samuel E. Whitley
Partner -- Corporate and Securities Law
Whitley LLP Attorneys at Law
11767 Katy Freeway, Suite 425
Houston, Texas 77079
(281) 206 - 0433 Direct
(281) 206 - 0432 Ext. 301
(866) 512 - 7794 Toll Free Facsimile
You and me both TD. Our suspicions about Treaty were proved to be true. Here are details of the complaint I filed with the SEC against Treaty:.
"TCR (Tips, Complaints and Referrals) Submitted Successfully (to the Securities and Exchange Commission) - Reference Number: TCR1360760685293
......
Here are details of 3 complaints:
Complaint 1 Press Release: November 2nd 2010 - Treaty advised that their contractor RSS had studied BNE Spanish Lookout field. "Early indications have shown two areas on the Princess concession that have many characteristics similar to the Spanish Lookout field. The first prospect is referenced as Orchard 1 and the zone being studied is at 3300 ft. This is the first of the two zones that we will study extensively and we are optimistic that we will locate commercially viable hydrocarbons in this field." Fact: A presentation by the Director of the Government of Belize Director of Geology and Petroleum, Andre Cho, to University of Belize in Belize City in or before June 2010 clearly shows that the Spanish Lookout field is in the Corozal Basin and The Princess onshore acreage - in which Treaty is exploring - is in a different geologic environment, the Belize Basin, on the other side of the Maya mountain.
Complaint 2 Press Release: July 6th 2011 press release quotes "Mr. York stated....we are projecting monthly oil production for August to be about 1000 BBLS and for September to be about 1250 BBLS" Press Release: Sept 8th 2011 "Mr. York added....we expect to exceed 1,000 barrels per day by the end of June 2012." Fact: The actual average production reported for 2012 up to 3Q (their last reported production so far) in their 10-Q was 2948 barrels for the 9 months to end September 2012(an average of less than 11 barrels per day)
Complaint 3 Press Release: January 30 2012 "Our internal analysis indicates that the Stann Creek Field covers an area of around 350 acres, and with 4-acre spacing we would expect to drill up to 90 wells in this oil field. Based on our initial findings, we estimate there are about 5,000,000-6,000,000 Barrels of recoverable oil in place in this first finding." Press Release: January 31 2012 "we have already established this oil field as having recoverable oil reserves of approximately 5 to 6 million barrels in a prior release" Press Release: February 2nd 2012 "Company has Further Reviewed its Finding and Confirms its Discovery of Oil on the Stann Creek Field in Southern Belize" Fact: February 2nd 2012 Belize’s Director of Geology and Petroleum, Andre Cho, indicated to Amandala [newspaper] that the statements by Treaty Energy Corporation, proclaiming an oil find associated with a 6-million-barrel reserve in Stann Creek are “misleading” and "there was no evidence of live oil".
This was the finding in the case of the US Securities and Exchange Commission vs. RONALD L. BLACKBURN; BRUCE A. GWYN; MICHAEL A. MULSHINE relating to their use of Treaty Energy Corporation to defraud investors.
https://www.bloomberglaw.com/public/desktop/document/SEC_v_Blackburn_No_2030464_2021_BL_388953_2021_Us_App_Lexis_30377?1650656285
I am out of the loop.
Can you provide a brief update of the status and timetable for the SEC court case again Treaty.
Cheers
Belize Oilwatch
Princess Petroleum have relinquished their concession in Belize according to a recent newspaper article published here.
Last Two Offshore Oil Contracts Expire
Cheers
Belize Oilwatch
Belize City, Belize CA
Repeat of December 8th 2014 post, in response to Treaty FB post.
Treaty's self imposed deadlines - epic fail.
------------------
Chris Tesarski promised deadlines for performance tracking:
November 17th – Finalise financing for Colorado acreage acquisition
November 24th – Ratify Hackmeyer/Princess/Treaty agreement on Belize equipment
November 30th - Install Water Treatment system at Stockton lease
December 1st – Preferred share details to Shareholders
- - - - - - - - - - - - - Today December 8th 2014 - - - - - - - - - - - - -
December 15th – Close deal on Colorado acreage acquisition
December 29th – All stock dividends in PRIVCO issued
December 31st – Permit 1st new well on three new leases in Tuscola area (well location 3D seismic defined)
December 31st – Drill one net well on Colorado acreage
July 1st 2015 – Drill second net well on Colorado acreage
December 31st 2015 – Robust drilling program on Colorado Acreage
Anybody want to summarise how he is doing?
------------------
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
Please provide evidence that Treaty is a 'Going Concern'. I can't find any.
Cheers
Belize Oilwatch
Belize City, Belize CA
Definition of a Going Concern
Update from Belize.
Government Backs Off On Offshore Appeal
Cheers
Belize Oilwatch
Just facts from Belize
Chris Tesarski isn’t Performing Well as Treaty CEO
He delivered on 0 out of 8 of his promised deadlines (see details below) and didn’t resolve any issues with the TRRC or make even one 8-K, 10-Q or 10-K report to the SEC.
Personally, I am more than a little worried for Treaty and its shareholders.
Any updates to the facts below would be appreciated.
Cheers
Belize Oilwatch
Belize City, Belize CA
--------------------------------------------------------------------------------
Update on Chris Tesarski’s promised deadlines for performance tracking:
November 17th 2014 – Finalise financing for Colorado acreage acquisition NOT DONE
November 24th 2014 – Ratify Hackmeyer/Princess/Treaty agreement on Belize equipment NOT DONE
November 30th 2014 - Install Water Treatment system at Stockton lease NOT DONE
December 1st 2014 – Preferred share details to Shareholders NOT DONE
December 15th 2014 – Close deal on Colorado acreage acquisition NOT DONE
December 29th 2014 – All stock dividends in PRIVCO issued NOT DONE
December 31st 2014 – Permit 1st new well on three new leases in Tuscola area (well location 3D seismic defined) NOT DONE
December 31st 2014 – Drill one net well on Colorado acreage NOT DONE
- - - - - - - - - - - - - Today January 16th 2015 - - - - - - - - - - - - -
July 1st 2015 – Drill second net well on Colorado acreage
December 31st 2015 – Robust drilling program on Colorado Acreage
But unforunately not a CEO in capability.
Cheers
Belize Oilwatch
Belize City, Belize CA
Information about David Hallin is available in Treaty’s 10Ks
Treaty end 2008 10K Shows:
David Hallin has been our Vice President, Secretary and director since our inception. Prior to that, he was the Chief Manager of Phoenix Oil & Gas LLC and Tenn-Tex Group LLC, both Tennessee LLC’s. Hallin was a Naval Aviator serving in the U.S. Marine Corps. on active duty and reserve status for twenty seven years. His experience includes service in Vietnam as a forward air controller and commanding officer of an attack squadron. He retired with the rank of Colonel. His business experience also includes a thirty two year career as a commercial pilot with FedEx where he served in flight management for ten years. He was instrumental in acquiring the SAGO oil, gas and mineral leases that now make up the foundation of the SAGO enhancement and redevelopment project in Treaty’s “Far West Texas Production Section”, and is a founder of Phoenix Oil and Gas, LLC. and Treaty Petroleum, Inc. He earned his Bachelor’s Degree in Business Administration from what is now the Walton College of Business, University of Arkansas.
2008 Compensation: Base Salary $0, Option Awards $0.
David Hallin, owns warrants to purchase 100,000 shares which expire June 12, 2010.
Treaty end 2009 10K Shows
During September, 2009 we received notice that David Hallin, the previous Corporate Secretary of the Company acting as Corporate Secretary for Treaty Petroleum, Inc. (the Texas corporation from which the two Crockett County, Texas leases were assigned to Treaty Energy Corporation) executed a “Release of Lease”, surrendering all rights to the two Crockett County leases. We also received notice that Mr. Hallin, along with Ronda Hyatt, the previous Company President, acting as President of High Ground, Inc., the operator of record of the leases, executed a “Release and Indemnification Agreement” with a representative of the lessors of the leases whereby Treaty Petroleum, Inc. (the Texas Corporation) was indemnified of all liabilities to the lessors.
During 2008, we made principal and interest payments to our then Corporate Secretary of $993 and $1,007, respectively and accrued additional interest of $1,139. During 2009, we made no principal and interest payments and accrued an additional interest of $1,161. At December 31, 2009, principal and interest due on this note was $48,747.
On January 29, 2010, a lawsuit was filed in the 22nd Judicial District Court, Parish of St. Tammany, Louisiana naming Treaty Energy Corporation, among others, as a defendant. The notes references in the previous [two] paragraph[s] are part of the basis of the lawsuit. With respect to these notes and the lawsuit, Treaty Energy recognizes the liability owed to Mr. Hallin.
2009 Compensation: Base Salary $0, Option Awards $0.
During the year ended December 31, 2008, Ronda Hyatt, Gary Dunham and David Hallin served as our directors.
On July 8, 2009, shareholders representing seventy four percent (74%) of the voting power of Treaty Energy Corporation (the “Company”) took certain corporate action by written consent of shareholders pursuant to Nevada corporate law. The shareholders voted to elect Randall Newton a director and as Chairman of the Board of Directors of the Company, and simultaneously voted to remove Ronda Hyatt, David Hallin, and Gary Dunham as directors of the Company. After these actions, Randall Newton remained as the only director of the Company.
On September 19, 2009, the three former officers, Ronda Hyatt, David Hallin and Gary Dunham submitted their resignations.
I haven't gone back further than this.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just Facts from Belize
Bull - Your posts seem to have lost it.
You're trying to get people to look in all directions except at you.
Please answer the question in my post before you make any other allegations about anyone else.
I don't know David Hallin. You might be confusing me with someone else.
Remember my previous advice to you.
Cheers
Belize Oilwatch
Belize City, Belize CA
Platon - Rather than trying to deflect blame .. I suggest it is now the time to come clean.
On what basis did you sign the attached Treaty document?
Your options are:
- As an Officer of Treaty
- As an Agent of Treaty
- As an Employee of Treaty
- As a Shareholders of Treaty
- As a Member of the Public who just happened to be passing
Time for some answers - unless you are citing 5th Amendment too.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just a question from Belize
----------------------------------------------------
Sorry but video of logging leading up to the announcement of the oil strike was posted by you here and by Bullmarketgarb on YouTube.
Several videos about Treaty on YouTube by bullmarketgarb also feature Platon
- which would lead the conclusion that bullmarket2222, bullmarketgarb and Platon are the same person.
Suggest that you preserve your Miranda rights by not making any more statements on investor sites until the SEC vs. Blackburn et al. Court case is over. You never know who is watching. Sorry it had come to this.
Cheers
Belize Oilwatch
Belize City, Belize CA
Facts and suggestion from Belize.
In the absence of conclusive facts, in my opinion, there are still two possibilities with respect to Treaty's current CEO:
(1) Chris Tesarski was scammed too and is trying to sort out the mess left behind by the previous Treaty administration.
(2) Chris Tesarski is under the control of Blackburn and is trying to perpetuate the scam.
Option (1) seems - in my view - to be supported by CT's actions on Belize and some of his plans in PRs.
Option (2) seems - in my view - to be supported by CT's noticeable lack of progress on turning Treaty back into an oil company, his complete lack of reporting to the SEC, his issuing of preference shares and his appointment of Andrew Kramer (Andrew Reid's attorney) to the new Treaty Board of Directors.
I am surprised that Platon Petratos and Andrew L. Kramer are not named as Defendants in the SEC's action:
- Platon Petratos for his blatant promotion of the very items that the SEC allege were designed to deceive shareholders.
- Andrew L. Kramer, for being Treaty's (plus Andrew Reid's and Bruce Gwyn's) Louisiana Attorney at the same time that Samuel Whitley was Treaty's Texas based attorney.
How long do shakeholders think Treaty remain a going concern in the face of this court action by the SEC?
Cheers
Belize Oilwatch
Belize City, Belize CA
Just opinion based on facts from Belize.
I don't believe that the SEC relied exclusively on the information you provided to make this case - which the wording of your post implies.
Especially if you were relaying information from others to the SEC. The SEC are more professional than that and - as far I understand - rely on direct contact with complainants and direct statements from the persons they request to supply information.
Also I'm sure you would agree that no Treaty stakeholders knew the details of what was going on inside the SEC. Hence their PR of December 15th was a surprise to us all.
I believe it would be fairer to state that the SEC were probably investigating Treaty Energy Corporation based on a number of complaints from various parties and they probably collected and verified information / facts directly from numerous sources - including yourself.
Do you agree?
Cheers
Belize Oilwatch
Belize City, Belize CA
Opinion from Belize
I am not sure why anyone would let Treaty farm-in to an opportunity like this.
Treaty have no competitive advantage to offer the current holder.
Treaty have a higher cost of financing and less technology and experience than their competitors in the market for such farm-ins.
Treaty have a very poor financial rating (due to no reporting) and a very poor record of paying their bills.
The only thing that might get Treaty a WI in the acreage is by paying way more than anyone else would and perhaps more than it is worth (at current oil prices) and offering firm collateral for the amount paid.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just my opinion based on 30+ years of experience in the international oil exploration business.
I only go to Escalante Garage when I am going scuba diving in Placencia in any case. No-one has ever offered to reimburse me.
Gas in Belize is sold by the gallon, its presently down to just under $5 US/ gallon from $6/gallon earlier.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
Did you not read the specifics of the Colorado acreage opportunity?
It is non-operated. See Colorado Acquisition - Target Summary : Treaty Shareholder Update September 30th 2014
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
Chris Tesarski promised deadlines for performance tracking:
November 17th – Finalise financing for Colorado acreage acquisition
November 24th – Ratify Hackmeyer/Princess/Treaty agreement on Belize equipment
November 30th - Install Water Treatment system at Stockton lease
December 1st – Preferred share details to Shareholders
- - - - - - - - - - - - - Today December 8th 2014 - - - - - - - - - - - - -
December 15th – Close deal on Colorado acreage acquisition
December 29th – All stock dividends in PRIVCO issued
December 31st – Permit 1st new well on three new leases in Tuscola area (well location 3D seismic defined)
December 31st – Drill one net well on Colorado acreage
July 1st 2015 – Drill second net well on Colorado acreage
December 31st 2015 – Robust drilling program on Colorado Acreage
Anybody want to summarise how he is doing?
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
Belize has an extradition treaty signed with the USA in March 2000.
Extradition treaty covers persons not property.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize.
Treaty drilling and logging equipment in Belize is still under Princess Petroleum control at Escalante's garage in Independence Village. These photos were taken at 7:45am December 1st 2014.
Other trucks have been parked in front of the Treaty equipment. Treaty equipment includes (L to R) a water truck, the logging unit and an office building.
Equipment includes (L to R) drillpipe and casing , hoses, container, BOPs, mud unit, more drill pipe and drilling rig
Equipment includes (L to R) drilling rig, two pump jacks, drill pipe, mud system, swabbing unit, container and more drill pipe and casing
A flatbed carrying a bulldozer (resembling the one that Treaty imported to Belize in the early stage of their drilling operation) has now appeared at the storage site.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
I suspect a vehicle (in this case a truck mounted rig) could be legally imported into Belize in the same way that my car in Belize City can be registered by showing a certificate of title which shows a VIN number of the vehicle.
No-one bothers to check the VIN number on the vehicle itself in this process although they do sometimes check that the vehicle matches the description on the paperwork. So in theory a vehicle with a VIN number on paper but with no VIN number on a vehicle plaque could be imported into Belize.
The car registration process is no different in Belize than the UK, UAE, Venezuela or Egypt in my own personal experience.
Regarding your allegation that the VIN number was removed - there is no evidence to support that. No vehicle plaque with a place for a VIN number which had been removed was found.
Also I have not seen any evidence to support your allegation that the VIN number was removed because the rig was stolen. The facts show that Treaty did not steal the rig and that the owner of the rig in 2008 was instructed by the court to transfer the ownership to another person as part of a settlement - which I understand they did not do.
Cheers
Belize Oilwatch
Belize CA
Just facts from Belize
This is going to get interesting.
I have been advised that Treaty had legal title to the rig to import it into Belize. They gave the title paperwork to Princess to process the initial importation.
No VIN number can be found on the rig. Neither me nor the Treaty country manager could find it when we checked the rig over in MAy 2013 while the rig was on San Juan 3.
Treaty have no-one in Belize to facilitate the sale of the rig and other equipment (including the logging unit) although Princess Petroleum have staff located in Belize City and Independence capable of doing this.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
Which meeting are you referring to?
I heard a rumour two days ago about a meeting between Treaty and Princess in Belize. I was unable to confirm this rumour despite visiting the Ramada Princess Hotel and talking to Princess Petroleum's geologist.
Cheers
Belize Oilwatch
Belize City, Belize CA
An 8k is meant to confirm whether something is true or false.
But Treaty have issued no 8k since March 17th 2014 when Treaty Board of Directors resigned leaving CEO Andrew Reid in charge.
There is a rumour that Treaty have a new CEO and Board of Directors but I have been unable to confirm that from 8ks either.
Cheers
Belize Oilwatch
Belize City CA
Treaty : Many great plans...many poor deliveries.
The prospectus and outlook of January 16th 2014 was a recent example of a Treaty great plan, in my view. It is interesting to look back and see how little of that great plan was actually done.
For a while now, I have only been looking for action by Treaty, as reported in official reports (TRRC, SEC, GOB etc.) and I still don't see much action even from the new management at Treaty who were installed 6 months ago today.
Cheers
Belize Oilwatch
Belize City, Belize CA
Treaty's PRs and Bull's posts sound good, but...
An impartial observer might point out that:
- Treaty appear have no rights to the water clean-up technology except to purchase it from SRS to use on their fields.
- Talk of liberating Treaty's production equipment assets by transferring them to another company is concerning, without knowledge of how Treaty will be compensated for these and how Treaty will be able to access these in the future if required to produce oil.
- Treaty apparently have valuable assets lying idle in Belize which would be of use to a US drilling campaign. Hopefully shareholders will get to see a list of Treaty's assets as a result of the asset transfer process and related SEC reporting.
- To date, Treaty PRs have spoken of more things that haven't happened than those things that have happened.
- It would seem better to base judgements on how Treaty are doing on their actual reported performance to the SEC, but these reports are notably absent - which is a concern which will hopefully be rectified as soon as possible.
Hopefully Treaty's real performance will start to improve - with more clarity and progress on the points above - to create value for their shareholders.
Cheers
Belize Oilwatch
Belize City, Belize CA
Belize Oil Exploration Update
Geology and Petroleum Dept listing of the current activities of the companies exploring in Belize.
Only update from this is Amandala newspaper of Sunday September 28th 2014 which advised that US Capital Temash-2 well was drilling ahead at 4000ft.
Oil Drilling Begins on Maya Land
Cheers
Belize Oilwatch
Just facts from Belize
Princess / Treaty Drilling Equipment and San Juan 3
Here are some photos of Princess/Treaty's drilling equipment in storage at Escalante's Garage in Independence and San Juan 3 well site taken as I passed by on the way to Placencia in Southern Belize on Wednesday October 1st 2014.
I hope these photos are useful to you - even though Treaty's focus now appears to be on the USA.
Cheers
Belize Oilwatch
Just Facts from Belize
Drilling Rig, Pump Jacks, Mud Unit, Workover Rig and Shipping Container
Shipping Container, BOPs, Mud Unit and Drilling Rig
Water Trucks, Logging Unit and Offices
Mud Tanks
Mud Tanks, Shale Shaker and Subframe
San Juan 3 Well - Appears Abandoned
The 552 barrels seems to have disappeared!
It is the Treaty PR of 6.45am May 1 2014.
But it is not in the Company News item posted on the Treaty website at 9.18am May 1 2014.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize.
Thanks for adding a little more DD to the picture.
Cheers
Belize Oilwatch
Belize City, Belize CA
Treaty moved today for Texas Sand Resources, LLC.
The PR gives hope for Treaty Shareholders as new acreage access and new management are what Treaty needed if they were ever to turn it around, although based on a little DD this morning the actuality of the situation may be a slightly more complicated picture to understand.
It will be interesting to learn what oil development acreage TSR brings, and how good new Treaty Energy Corporation Executive Chairman Chris Tesarski is at managing the company's direction and investments.
Chris Tesarski is listed as CEO at Sandbox Resource Solutions of Abilene Texas and there is no mention of Texas Sand Resources in any of his or his company's profiles.
In the past he has tried to sell assets with conditions and moving to positions in the acquiring company see Planned Sale of Sandbox to Forest Energy Falls Through
There is little mention of Texas Sand Resources LLC anywhere - that I can find - on the web, except they are listed as operator no 847981 by TRRC. So there is clearly some more DD required on the assets involved in this acquisition.
SANDBOX RESOURCE SOLUTIONS is described , not as an oil and gas development company, but a technology company that can clean up oil industry produced water. Sandbox Resource Solutions
It will be interesting to see the source of the $1,250,000 that Treaty paid for Texas Sand Resources, LLC.
Cheers
Belize Oilwatch
Belize City, Belize CA
Facts and opinions based on limited DD from Belize after Treaty's PR on acquisition of Texas Sand Resources LLC early this morning.
So lets compare CEO's 2012 remuneration for start-up oil companies.
Treaty Energy Corporation (TECO) - Andrew Reid $2,600,000
Hyperdynamics Corporation (HDY) - Ray Leonard $961,000
New World Oil and Gas PLC (NWO Incorporated in Jersey) - William C. Kelleher $721,000
The performance of the three companies can be read in their annual reports referenced below.
Who knows why start-up Treaty paid their CEO the same as multinational BP in 2012? I don't.
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from the web extracted in Belize
[Data sources:
Treaty Energy Corporation (TECO)
Treaty year end December 2012 10-K
Hyperdynamics Corporation (HDY)
Hyperdyamics Proxy for December 2013 Shareholders Meeting year to end June 2013 refenced in Hyperdynamics end June 2013 10-K
New World Oil and Gas PLC (NWO Incorporated in Jersey)
New World Oil end December 2012 Financials ]
That's not my point.
I know Treaty is not BP.
As a shareholder, I appreciate BP's business performance (in 2012 / 2013 and 2014) so far and support the CEO's remuneration.
As a shareholder, do you appreciate Treaty's business performance (in 2012 and 1Q to 3Q 2013 only - as 2013 and 2014 so far are unreported) and support Treaty's CEO's remuneration of its CEO?
Cheers
Belize Oilwatch
Belize City, Belize CA
Opinion and questions from Belize
Oil Companies - BP and Treaty Comparisons.
As a BP shareholder, I have just finished listening to a webcast of BP's 1Q 2013 results. Which made me think whether there were any valid comparisons between BP and Treaty - both oil companies - that would inform shareholders.
Comparisons between BP and Treaty may seem meaningless - but in one aspect (see the final point) they are not.
as...
- BP is a multi-billion dollar profitable oil and gas company and Treaty is not
- BP's share price is rising and Treaty's is not
- BP has had positive cashflow since a couple of years after start-up and Treaty has not
but...
- BP, with its global operations, has already filed its 1Q 2014 results but Treaty hasn't filed their end 2013 results yet
- BP has a board of directors but Treaty doesn't
- BP paid its CEO (Bob Dudley) a total remuneration $2.6 million in 2012 and Treaty paid its CEO (Andrew Reid) a total remuneration $2.6 million in 2012 too.
Who's getting value for money from their CEO?
Cheers
Belize Oilwatch
Belize City, Belize CA
Just facts from Belize
[Notes:
Bob Dudley's total remuneration for 2012 is as reported in BP Strategic Report 2013
Andrew Reid's total remuneration for 2012 is as reported in SEC 10-K filing for December 2012 including Salary of $240,000 and payments of $2,312,124 in shares in recognition of helping relieve debt and fund raising (not including the debt repayments to him or his associate companies)]
Let no-one tell you otherwise. Find out the facts and make your own minds up.
The involuntary bankruptcy petition, filed in May 2013, was dismissed in June 2013.
Treaty have re-opened the case and are seeking damages citing impact to their business.
The January 2014 10-Q SEC filing, filed after the involuntary bankruptcy, showed that 3Q 2013 was the best quarter that Treaty had ever had. Mainly - I believe - due to the oil revenues from Mitchell 3&4 and lower admin costs.
The December 9th announcement that Treaty had sold Mitchell 3&4 was - in my opinion - a surprise to most shareholders and Treaty watchers, as was the stated shift in focus from revenue from oil and gas production to making money by asset disposals. I expect the end 2013 10-K to be particularly illuminating in this regard.
And as for Belize, the facts show that the information on the Treaty website is misleading and out of date. The Princess concession is no longer 1.5 million acres. San Juan 3 had been plugged and abandoned. There is no Treaty drilling activity going on in Belize and Treaty's drilling equipment (including logging truck and rig) is still lying at Escalante's garage in Independence.
Cheers
Belize Oilwatch
Placencia, Belize CA
Treaty’s Performance vs. What They Said They Would Do?
Treaty set themselves the following performance targets for 1Q 2014 in the “Six Month Prospectus and Outlook for Investors” dated January 16th 2014:
1Q 2014 Performance Targets
Regulatory Issues
1) Complete plugging wells 1, 12CB and 13A on the Barnes lease and get the TRRC Master default Order against C&C Petroleum removed
2) Resolve the issue with Heritage Oil and Gas and plug the wells on the McComas lease
Reporting
3) File end 2013 10-K Annual Report
Production Operations
4) Full production January 15th to end Q for Stockton well #2
5) Complete Stockton well #3
6) Test Stockton #1 with gun barrel separator
Development
7) Start Drilling Kubacak Phase 1 (3 wells)
Treaty Energy Legal
8) Issue a document explaining Treaty’s position and the damages it is seeking in the involuntary bankruptcy petition that was filed against Treaty in May 2013.
1Q Operations Report Suggested
To continue the good trend in shareholder communications started by the “Six Month Prospectus and Outlook for Investors”, Treaty Energy Corporation should be able to report on progress against the above targets in a 1Q operations report later this week immediately after the end of the quarter – in a similar manner to many other oil companies – to give shareholders an idea of how the company is doing without having to wait for the full SEC quarterly financial reporting which comes much later.
Additional Information Could Be Provided in Areas with No Performance Targets
It should be noted that no performance targets were set in the following areas:
- Oil/Gas Production Rate (information which drives revenue would be well received by Shareholders)
- Oil and Gas Lease Sales (information which drives revenue would be well received by Shareholders)
- North Louisiana Drilling Contract (the number of wells drilled would be useful information to shareholders in keeping with the NDA)
- Further Reduction in Marginal Well Inventory (Where a progress report would be beneficial to sharholders)
- Belize Operations (Where an update on the actual current status of Treaty in Belize is due to shareholders)
Cheers
Belize Oilwatch
Belize City, Belize CA
Just trying to help Treaty run an oil company, as I have been doing for British, American, Egyptian, Venezuelan, Emirati Arab and Belizean management in my 35 years in the industry.
“As I grow older, I pay less attention to what men say. I just watch what they do.” Andrew Carnegie