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From bankruptcy petition to monumentally higher! And you aint seen nothing yet. Been telling you folks for several weeks that you just have to ..... Get Ready!
Belize Ministry of Energy, Science and Technology and Public Utilities Clarifies Oceana’s Misinformation
Written by Administrator
Thursday, 20 June 2013 00:00
The Ministry of Energy, Science and Technology and Public Utilities notes with regret a recent press release by Oceana in which it persists in putting its spin on the judgment delivered on April 16th, 2013 by Justice Legall concerning certain oil exploration contracts awarded by the previous government. In that judgment, His Lordship made certain declarations against the Ministry but not against the oil companies. Most importantly, the Judge specifically refused to quash the oil exploration contracts. The legal consequences that follow from what the Judge ordered as well as what he refused to order are purely a legal issue.
For that reason, the Ministry has obtained and has acted upon legal advice from one of the nation’s most respected attorneys at law , which states in the clearest possible terms that the effect of the Judge’s refusal to quash or terminate the contracts is to leave them fully enforceable by the oil companies. That advice emphasized that no order or judgment was made against any oil company, none of which was even a party in the court case. This point was fully made by the Ministry in its written and oral arguments to the Honourable Chief Justice on its recent application to stay the effect of Justice Legall’s judgment.
Consistent with the legal advice received, the Ministry is obliged to treat the contracts as binding and enforceable against the country of Belize by the oil companies. It would take the legal authority of a judgment of the Court, clearly expressed to be binding and enforceable against the oil companies, to quash or cancel the contracts. Only such a judgment can take away the contractual rights awarded to the oil companies. The Ministry repeats: there is no such judgment.
For that reason, the Ministry, in issuing maps showing oil exploration areas held by the various oil companies, had no choice but to recognize the fact that Princess Petroleum Belize Limited and Providence Belize Energy Limited oil companies continue to hold these exploration areas given to them by contract.
The Ministry respects the right of Oceana and others to espouse their views on issues concerning oil exploration and production. However, it must reject as irresponsible the insistence on putting the spin on Justice Legall’s judgment that it takes away the contractual rights of the oil companies.
The Ministry refuses to be driven into the reckless course for which Oceana is pushing, which could expose the country to claims by oil companies for hundreds of millions of US dollars in damages. At this very moment, St. Lucia is defending a claim for US$560 million for cancelling an oil exploration license to Jack Grynberg’s RSM Production Corporation, as a Google inquiry will show. The Ministry will take every care to avoid exposing Belize to such a claim.
The Ministry ends by pointing out that if Oceana honestly believed the spin it is putting on Justice Legall’s judgment, that it cancelled the rights of the oil companies under the contracts, Oceana would long ago have applied to the courts to stop the continuing exploration activities the oil companies, or to compel the Ministry to stop them, or to find the Government to be in contempt of court.
You probably forgot that the GOB has to approve of any oil found by Treaty or any other company in Belize. Treaty has stated that after their last problem they would comply with the GOB and not issue or even whisper anything about finding any oil until the GOB confirmed it and OK'd a PR. Until then, you nor anyone else except those down in Belize know for sure how much oil Treaty found in the SJ#3. But my guess is that with limited capital for discretionary equipment they would not have purchased and sent down more equipment if they didn't need it. Get Ready!
Perhaps you forget that whatever the claimants presented to the Louisiana judge and court were not sufficient for any trial to continue. Laws are laws. Any court in any state should see the same thing. Wonder who the attorney will be for the claimants. A frivilous lawsuit in Texas does not get any more respect from a Texas judge than a Louisiana judge. In the meantime, Treaty is continuing to move it forward. Get Ready!
Actually it's closer to 65 to 70 BOPD, which is about 30% more production. And there has been no revelation of potential reserve valuation, yet. Remember that Treaty has more than 1800 more acres to drill which represents dozens of additional wells. And they are working on a drilling program, right now. Get Ready!
So who gave you that word? Word I got is that they may have something positive. So in that event, whoever told you no oil for Treaty in Belize is not telling the real story, are they? And as I have posted previously, Treaty has two Mitchell wells now producing over 25 BOPD, in fact the #4 is producing 45-50 BOPD. Did'nt you post that they might get to 25 BOPD? Well, they are blowing right past that. And there's more to come.
Get Ready!
Any lawsuit filed against Treaty must be able to show cause, and prove the validity of such cause. If the suit is regarding work performed by a party for Treaty, then the plantiff must be able to prove without doubt that all actions were taken according to a contract, and all materials that were used were in compliance with a contract. And then there is the performance of the operation if that was a part or condition of the agreement, which it routinely is. If the plantiff can prove without any doubt that all activities called for in their suit, and can prove all materials met the standards required in the contract, and the action resulted in performance as prescribed in the contract, then they may have a valid case. HOWEVER, if there is doubt of any action or material or performance, as has been stated by someone in the field for Treaty, then the plantiffs may face an uphill battle just like the claimants did in their bandruptcy petition. And again, just like those claimants, the plantiffs will lose their case. Sounds as much like sour grapes again. But then a lot of companies have such suites against them and eventually win their cases, just like Treaty will win this one, again. Treaty is moving it forward. Get Ready!
Quite right! And when they did go to bankruptcy court, they could not produce the documentation required for even the court to order a trial, therefore the case was dismissed. Period. If the claimants continue to court in another state, they will have the same problem, and their past dismissal will be brought into play. When that information is entered into another court, they will again face a dismissal. As you posted, if they had a case, then they would have received a go ahead from the court for a trial. They failed, miserably at that, to provide any evidence to support their claims. Some on this board may not know it, but after the fifth claminant gave their testimony, and the sixth claimant was called to present, that party did not even go up and take the stand. Get this point. They lost. They were dismissed. As for Treaty, they're moving on up. GET READY!
The FBI and the SEC could take the case for Treaty as what the claimants did was sign a petition for bankrupting a public company with frivilous claims that they signed for the federal bankruptcy court for the judge. By doing so, and with the subsequent dismissal of their petition because of a lack of evidence or "show cause," the claimants may have perjured themselves in a federal court. And since it was against a public company, they can be charged in federal court. In addition, they may have violated several sections of the Ricoh laws. If I were them, I'd lay low for awhile, well, maybe a long while. If they do wind up in court against the feds, it will not be a pretty picture for them as in many instances convictions for those types of violations will cause you some prison time, plus probable asset loss. It's a big win for Treaty as now it allows them to move their operations to the forefront. Some good things are beginning to happen. Get Ready!
Treaty producing three wells in west Texas. As of now, Treaty has opened up the Brown well in west Texas and it is producing oil. The production volume will be tested and reported soon. This well along with the Mitchell #3 and #4 now give Treaty three new wells of production and more are on the way. Everyone should remember that Treaty acquired 1800 acres of new leases recently and smaller tracts as well. It is anticipated that more new drilling will commence in the third quarter as there is sufficient acreage for dozens of new wells to be drilled over the next two or three years. And Belize is moving along very nicely according to reports. It is anticipated that additional completion equipment will arrive by the end of next week and it is possible that by July 4th we will know if Treaty has hit a commercial well. Get Ready!
Treaty's New Business Plan
1. Continue Drilling for Oil
2. Sue the heck out of the claimants who have had their backside handed to them today.
As I have posted, Treaty would win this one, and big. In addition I'd be going after their attorney for filing a frivilous lawsuit. Here's a point. The claimants signed frivilous claims for a federal court against a public company. In other words, they committed perjury. Gee, do ya think the company has legitimate grounds to win a case against them? Yep. Sure do. Now Treaty can turn their attention to drilling more wells in west Texas and getting Belize San Juan #3 completed and hopefully producing some nice volume of oil. Go Treaty! Get Ready!
All these events should have all been in a 8-K within 4 business days of them occurring...
The departure of the President.(York)
NO. He was not President of the holding company. A subsidiary officer is not a required filing.
The appointment of a new President. (Gwyn)
NO. He was an appointment of a subsidiary, not the holding company.
The increase in the A/S.
YES. They should have issued an 8K within four business days of the effective date of increase share capability.
The loss of the P-5 for their operator C&C Petroleum.
NO. This does not constitute a 10% value of their total asset structure.
The loss of the concession in Belize.
NO. The loss was minimal compared to what their intentions were for drilling in Belize, and in fact they were in no position to drill offshore. Nor did it qualify as a loss of 10% of their asset value.
The LOI with US. Fuels.
NO. Again, not within the 10% of asset value qualifier.
The Bankruptcy filing.
Possibly Yes/Possibly No. The claims made in the bankruptcy petition by the claimants had never been made in civil court and therefore do not actually qualify for a filing in bankruptcy court according to just about every attorney I have discussed this matter with. So does any public company have to file an 8K when a probable frivilous suit is filed against them? We'll know soon.
Is it your wish that the SEC investigate Treaty? All the while the company continues to move it forward. Get Ready!
NEWS FLASH! Treaty strikes again. Someone mentioned to me that the Mitchell #4 is possibly pumping about 50 BOPD. But there is now even a third well that is also pumping according to reports. And there's more to come. Get Ready!
Thanks BO. Unfortunately some folks think they know everything Treaty is doing and continually post all of the wrongs. Your post is welcomed in that it does bring to lite that Treaty did in fact use seismic for their well site determination. In fact, I posted that weeks ago when the subject was brought up by the "other side." And as I have posted, they have TD'd the San Juan #3 and are in the process of casing and getting it ready for completion. Hopefully it will be a commercially viable producer. And it is my understanding that the Mithcell #4 came in even better than the Mitchell #3 and there is now even a third well producing for Treaty in the field. With their recent acquisition of about 1800 more acres in the same area, they have an opportunity to drill dozens of more wells like these. It's going to be a good year going forward for Treaty. Get Ready!
Yep, Dry Hole was what those guys got no matter how exceptional was their expertise, and at the expense of HRT's capital. Maybe they will hit the next one. But as you posted, it's kinda like a crap shoot. Perhaps the San Juan #3, as the third well for Treaty will be the charm. And by the way, the GOB won the initial day of hearing last week regarding the injunction. The Supreme Justice ruled against Oceana regarding bringing in any expert witness. The hearing resumes tomorrow. The GOB has inserted into the agenda being heard that the government will suffer a loss of perhaps $5,000,000 if the injunction is not lifted. I'm betting on the GOB, and Treaty. Get Ready!
So explain how they had oil traces in their mud flow into their pit. And where did the tar balls come from? No one even posted a picture of those. Or did someone just make that up? Wow. Lots of heresay, but one thing is for sure. Treaty is moving it forward. The bkrptcy hearing is Wed from what I know. Get Ready!
HRT, with millions of dollars spent on 3d seismic, and tons of other data failed in their attempt to hit oil on their first attempt off the coast of Africa. Even though Shell had hit other wells reasonably close, they failed to hit commercial quantities. So just because you have the latest and greatest seismic and other data doesn't mean you will hit oil. Thanks for posting the correct interpretation of what actually happened for Treaty. In fact there were oil traces, but not commercial viable quantities at all. As for San Juan #3, the verdict is still up in the air but remember this time Treaty drilled to lower than 3500', so they are in a new possible zone of opportunity. There is oil in Belize as evidenced by the success of BNE, and perhaps a couple of other smaller hits by companies. Let's hope Treaty hits a nice commercial well also. So the question is; What volume of production does a well need to produce to be considered commercially viable?
10 BOPD?
20 BOPD?
40 BOPD?
60 BOPD?
100 BOPD?
Or more?
The time is close at hand to know if Treaty has a successful well in Belize. Get Ready!
Treaty could have shocking week for some. First they should win in court, second they will have the Mitchell #4 production numbers to go along with the Mitchell #3 numbers and they will both be good. Third, they will continue completing the Belize San Juan #3 well and it could be a real oil well for Treaty in Belize, thereby confounding those who said Treaty had no oil in Belize. And there may be more to come.
Treaty is moving it forward. GET READY!
Coin, I would never say never for San Juan #1 and #2. Here's why. Treaty was initially going to drill both of those wells deeper than they actually did, mainly due to technical problems. However, if they do hit oil in the San Juan #3, which was drilled to about 3500' or so, then there is always the possiblity that they can go back and drill deeper on the first two sites. After all, they do have some data that indicated oil in that area, and it's essentially the same data they have for #3. I'm hoping they do hit on #3 as that would open the door for not only the old two, but dozens of new wells. And that could happen. Get Ready!
BO, it seems that the one point about the injunction that stands out is that the GOB has claimed irrepairable harm, which I consider to mean damages not only to the GOB in lost time and tax opportunity, but for the contracted parties as well, ie., Princess and Treaty, and others. In that tone, I suspect that the GOB will win this issue and the companies will be allowed to continue without any interruption, as Treaty has been informed they can do. After all, they do have a legitimate contract made by a government official through Princess which gives them the right to drill on their co-owned concessions. As of now, it appears the Treaty drilling team has stopped drilling, but I suspect that is because they have TD, and now are readying for completion of the San Juan #3. Hopefully it will prove to be a commercially viable well and we could know for sure by the end of this month. If that well does come through for Treaty, and I'm betting it will this time from what I saw in the data presented in their conference call, and with the Mitchell #3 and #4 coming on line with proven production, and with further opportunity to continue drilling more wells in the Mitchell area, then Treaty is ramping up as a nice E&P play. I suspect the bkrptcy court decision this coming week to also be in their favor and when that is behind them, the company can then focus all of their attention to more successful moves. Get Ready!
Excellent points panther2. These guys are trying to do a cheese job on Treaty and tie them in court but the worm is going to turn against them in this situation. As I've posted, if they show up, and their attorney shows up to represent them, they all could be filed on by Treaty for a frivilous suit and all hell will break out against these guys. In the meantime, Treaty is continuing to move it forward and will have the Mitchell #3 and possibly the Mitchell #4 pumping by the end of this week. As for Belize, someone posted that the drilling has stopped. Well, that could mean they have TD. And now the real picture of what they have found will appear as soon as they and the GOB allow a PR. Here's hoping they hit some commercially producable oil. Well, no, here's hoping they hit a very large quantitiy of commercially producable oil. Now that would really move things forward, in dramatic fashion. It could happen. Are you ready? Get Ready!
ORDER IN THE COURT 'CAUSE HERE COMES THE JUDGE, and he's pissed. If I were the claimants, I'd probably not show up as then the judge could issue a claim right then and there, and against me. Uh Oh. They could go from being a claimant one day to becoming a defendant the next day. Treaty is growling. Get Ready!
Bkrptcy Court states that they have not been notified that Treaty has been served, as of Friday, 5/30. Therefore, a motion to dismiss has been served to the claimants and Treaty. Finally, we get the names of those who are trying to ruin the company with their frivilous claims. It should be interesting in court. And Treaty keeps moving it along. By the end of Monday, Treaty should be down to about 3500' or so in Belize. Get Ready!
Treaty Could Have Recourse against the petitioners, and the attorney who represents them as well. Seems like these same folks just lost against Treaty several weeks ago, and now they're trying more trickery. But guess what. The course of their action is circumventing them filing an initial claim in civil court, which has not been done. The bankruptcy judge will not feel good about them not following normal legal protocol. It is my opinion that they will lose this piece of work and if an attorney shows up for them he(she) will get admonished by the court for not only a frivilous charge, but for not following proper legal channels. And if I were Treaty I'd be filing against the perps in this situation, and their attorney. As I've posted, perhaps that's why no one has shown up for them. And Treaty continues pumping oil and drilling and getting ready for more drilling. Bet there's news coming. Yep, Get Ready!
What are the names of the people filing as creditors against Treaty, and what is the position of any contract(s) that they are filing as a creditor of Treaty? And do those people have any verifiable liens filed against Treaty such as a UCC form or title registration or whatever? This can be cleared rather quickly in court, especially since it is possible these same folks recently lost a court battle against Treaty. And in the meantime, Treaty keeps on pumping and we move closer to the Mitchell #4 being readied for production. Get Ready!
Kanola, it's not only the potential of triple damages against them, the attorney who files what may be considered a frivilous case for bankruptcy against a company is subject to harsh discipline and potentially liable damages themselves. That is possibly the real problem these guys have in getting an attorney to represent them full bore. If it's not a slam dunk for them, I sure wouldn't take a case like that. The implied liability damages are just too great. And since they already filed for personal bankruptcy, they cannot file again for seven years after the date of their filing. Having posted this, I wonder which attorney will represent them. In the meantime, Treaty keeps on pumping oil and readying for more. Get Ready!
Doesn't Treaty have 30 days to file their IP report which also gives them time to gather the actual production numbers from several days of production? And why would the bankruptcy petitioners serve Treaty and now it's been what, over two weeks and now we learn THEY HAVEN'T FILED WITH THE COURT, YET? Gee, you would think they would have filed those papers at least the next business day after they served Treaty, if it was a real deal. Of course, it is probably not and they know it and are only using it as a ploy to try to keep Treaty stock from climbing higher. But change is coming. The Mitchell #3 is producing and Mitchell #4 will be completed next week and then come on line and that will only be a part of the news for June. Treaty may also report oil in Belize that month, and who knows what else the redirected management team is working on to improve shareholder value. Get Ready!
What is interesting is that now Oceana wants to have the testimony of a witness. So what that means is they got the judge in the initial trial to give them a verdict without an expert witness for their side. Intersting that they now can bring in someone after the fact. On the other hand, it also allows the GOB to bring in their own expert witnesses and their Director of Petroleum who oversees the country's oil exploration and production. In the meantime, Treaty keeps drilling. Get Ready!
Treaty is already past 3000'. The rig does have limitations on weight capacity for pulling string, but using a 3+' drill stem allows them to drill deeper. In fact, I've heard they could go down over 4000' and the GOB wants them to drill deeper. So there you have it. And the pictures already give an indication of an oil show. Obviously, no testing to prove commercialability, but at least an oil show. And by going deeper, who knows,they could hit another zone, or even more zones. Get Ready!
IT'S A PETITION FOR BANKRUPTCY, filed by supposedly creditors. IT DOESN'T MEAN TECO IS IN BANKRUPTCY. In the meantime, TECO is producing the Mitchell #3 and getting ready for completion of the Mitchell #4 and getting ready to drill down to 3500' in Belize. And speaking of .... Get Ready!
TECO IS NOT IN BANKRUPTCY. An involuntary petition was filed against the company, which requires multiple hearings before an involuntary bankruptcy is declared. Here is TECO's standard response to inquiries such as yours:
TECO's official answer is that the involuntary petition is founded on completely baseless claims. Several of the petitioners are disgruntled former directors and employees of TECO that still hold resentment against the company.
The representing parties have used no filing attorney or have listed an attorney as a point of contact and are filing it pro se.
TECO is going to petition to have the case against TECO dismissed with supporting documents against the claims. If dismissed, TECO will be seeking full damages along with attorney fees as allowed by federal law. Shareholders should not be concerned as TECO's attorneys are already working on a legal response and are confident in TECO's case against the petitioners.
The above was posted by ERICSHON earlier. This is Treaty's position. Get Ready!
What well? Treaty doesn't drill wells. BUT, they do contract with others to drill wells, and great wells at that. Get Ready!
No, the Mitchell #3 has not been pumping for a week. Where did you recieve such false information? But it is pumping. And it is doing great. And the Mitchell #4 should begin completion this week and should be ready for production next week. Get Ready!
Mitchell #3 much better than GREAT! Just wait for the news regarding their IP. And #4 is being completed and might possibly be in production by the end of this week, or at least the first of next week. And Belize is working. Get Ready!
Mitchell #3 over 40 BOPD. That's my projection.
Mitchell #4, when it comes on in a week or so, over 40 BOPD. That's my projection on that one also.
And Treaty is getting ready to redrill another well in the same area that just might increase the production of that one to over 25 BOPD. Things are moving forward for Treaty in west Texas. Thanks to Bull for his dilligent efforts. Patience and persistence are going to pay off. Get Ready!
Treaty Mitchell #3 Initial Production Rate Projections:
Some have posted 2-3 BOPD.
One has posted 15-25 BOPD.
I posted that if Treaty has a 25 BOPD in the Mitchell #3 they would have a really good well. Well folks, now's the time for everyone to post their projections. As for me, I also posted that if they could get a 40 BOPD Mitchell #3 well, they would have a GREAT WELL. And now, I'm going out on a limb with that number and saying that Treaty will have a GREAT WELL in the Mitchell #3. And I'm going to go out on another limb and post the same thing for the Mitchell #4 when it comes online. Hopefully they will have everything completed, the pump jack in and electrical hooked up so they can even begin producing that well by the end of next week. If they can, that means they have drilled and completed two wells this month. And if my thoughts of a GREAT WELL production of 40+ BOPD from each holds true, Treaty will be well on their way to becoming cashflow positive by the end of June if they can drill two more wells that month. And don't forget Belize, which is drilling right now. Yep, it's time. Get Ready!
Mitchel #3 is the real deal this time. Finally, Treaty has scored a success on a well that they drilled, not reworked. It's a step forward in their progression of changing their management program which should continue improving their production as the Mitchell #4 comes on next week and improve their shareholder value as well. And there's more to come. They now have dozens more potential drill sites on the recent leases they acquired. Nows the time. Get Ready!
BO, the last I heard the Belize San Juan #3 is now down over 2400' and holding as they need more cement which should be delivered shortly. It is probable they will TD to about 3000' or so this week and then a wireline is highly anticipated. Let's hope for success. Mithchel #3 and #4 look pretty darn good in west Texas. Get Ready!
So TD, if you were the chief consultant for Treaty, what would you recommend that they do to get their share price moving up? And remember this week, they will have the Mitchell #3 pumping and will be hooking up the Mithcell #4 to begin pumping next week. And it looks like that they in fact are drilling in Belize. And in addition, they are getting ready for a rework of a well in west Texas that could add to the anticipated production. We would like to hear what you would do to improve their situation. Get Ready!