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Listen and listen carefully....
As far as TECO, I cannot continue to support the company if the promised production is not there or the financials aren't done. No excuses....
That's why the funding came in. And that's why I thanked td for running the numbers on production....
TRRC reports in October should show 20 to 25 BPD.
I don't know if they will and I don't have access to deny or confirm.
BULL
Cary made a bad bad call and the information he has published is fictional......
cuban, I traded with on MAMA as we both were long and posting on the YMB together.
Then Cary sold the story to cuban and Karl as to, BULL and XXXX, it's a scam.
Then Karl went to CNBC media to run a dog and pony show as cuban called klien to pressure him to sell....Klien knows it's BS.
http://seekingalpha.com/instablog/11442671-gerald-klein/3350075-the-real-fraud
Karl was eaten alive and scurried off like a beaten dog by art, me and several others....
Read Comments at the bottom.
http://www.cnbc.com/id/102076251?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=102076251
Art, whose very astute wrote this.....
http://seekingalpha.com/instablog/556893-arthur-porcari/3353655-kandi-technologies-a-losing-battle-for-trapped-short-sellers-a-rebuttal-of-karl-richters-visit-to-fantasyland
But don't expect reporters to thank Carey. In old media circles, Sharesleuth is considered just as compromised as the companies it covers. The beef: Sharesleuth is funded by Mark Cuban, the infamous Broadcast.com founder and Dallas Mavericks owner. Cuban finances the site by shorting the stocks of the companies Carey investigates in his stories. And Cuban trades before Carey publishes. (Short sellers are betting a stock will fall; they borrow the stock from a broker and sell it, with the promise to buy the stock later — hopefully, at a lower price — and return it to the broker.) Carey and Cuban disclose the financing technique on the site, but that hasn't stemmed the criticism. On his blog, The New York Times' Andrew Ross Sorkin dubbed the strategy "about as basic an ethical violation as there can be, whether that stake is disclosed or not." Blogger Gary Weiss, a former BusinessWeek reporter, accuses Cuban of "soiling investigative journalism to line his pockets." Fred Brown, vice chair of the ethics committee of the Society of Professional Journalists, a trade group, warns that "Mr. Cuban is eating the fruit of the poison tree."
Cuban has never been known to duck a fight, and you can almost hear the glee in his email as he responds to these charges. He says that business journalists are either blind or naive to the role they play in boosting the stocks of the companies they cover, which employ legions of public relations staffers to influence media coverage. "You just leave all the gain to the interviewee using you to move the price of a stock in a profitable direction for them," he writes. "You pay for the newsprint and postage by selling ads for products that you know nothing about and hope they work. How is that working out for your industry these days?"
Klien is solid and cuban doesn't shake him from the truth.....
Karl and cuban are chirping Careys BS....
I traded with cuban on MAMA as he made post along with mine on the YMB. Mark doesn't remember or he would have never contacted Klien.
Kliens resume.
Forty year career in finance and executive management beginning on Coopers & Lybrand audit staff (CPA) culminating with twenty-six years as CEO of publicly-held companies. Prior to that and after leaving C&L served in CFO and COO capacities, all in publicly-held companies. Was an EDGAR Pilot Program filer in 1984, one of eighteen if my memory is correct.
The REAL Fraud 9 comments
Oct 10, 2014 4:52 PM | about stocks: KNDI
Today John Jannarone published an article titled, "Worst Stocks Win Awards In Hedge Fund 'Short' Contest" following is my email to Mr. Jannarone regarding his article.
The Kandi Short
From: gwklein@outlook.com
To: john.jannarone@nbcuni.com
CC: karl.richter@tectonicinvestments.com; ir@kandigroup.com; echen@pryorcashman.com
Subject: The Kandi Short
Date: Fri, 10 Oct 2014 14:59:09 -0400
Dear John:
Just this week Mark Cuban reported to me that he believed Kandi Technologies Group, Inc. (NASDAQ:KNDI) was a fraud. I thought it very odd that he would share that opinion with me. Today reading your article, then Karl Richter's analysis, I realized why Mark Cuban shared his belief. I do not believe in coincidence.
Kandi's short saga, and it is a saga, is well documented. The following link is the best summary, kcmria.net/Kandi-What-Are-They-Hiding.html Todd Krajinak explains well the desperation facing the short. The real trading volume in KNDI is perhaps 100,000 shares at most. The rest is empty volume generated by the short and high frequency trading. The reported short interest is about 7 million shares and is impossible to cover. Maybe infinitely impossible to cover. Karl Richter's article is the latest and most egregious attempt to collapse KNDI and enable the short to cover.
I have authored three articles about the short position in Kandi, http://seekingalpha.com/article/2273413-short-kandi-a-misplaced-bet, http://seekingalpha.com/article/2287373-short-kandi-raised-bet-or-a-lonely-game, and http://seekingalpha.com/article/2310645-short-kandi-the-wrong-road.
My theory remains that Mark Cuban, and others, shorted a basket of Chinese reverse merger stocks in the 2008 to 2010 time frame. Many of those stocks proved to either be frauds, or if they were not frauds, they were victimized by market forces. Kandi is not a fraud and has survived the market forces and everything the shorts have done to try to effect its demise. On June 5, 2013, instead of covering a relatively modest short position at that time, the short chose otherwise and chose foolishly. Kandi is likely to become one of the greatest short squeezes in market history despite the nefarious attempts of people like Mark Cuban, Karl Richter, et al.
Respectfully yours,
Jerry Klein
Disclosure: The author is long KNDI.
Themes: electric vehicles, short Stocks: KNDI
Not to sound condescending but I got chuckle from your post.
China grew almost 10m jobs over the last 8 months. Most of this is moving citizens into the cities. Advantage Kandi. Nothing but but good news.
Let me help you,
Making sense of China’s economic health is challenging because the slowdown is partly by design.
The Communist leadership has pledged to reduce China’s dependence on credit-fueled growth and investment, to instead emphasize domestic consumption. It is a risky proposal, and leaders have signaled a willingness to live with slower growth, provided employment holds up and systemic risks are contained.
One figure that Chinese leaders study closely is the number of new jobs. Li Keqiang, China’s prime minister, boasted in a speech at a World Economic Forum meeting last month that nearly 10 million urban jobs had been created in the first eight months of the year, up slightly from a year ago. As a result, he said, he would not mind if the growth of the gross domestic product fell short of this year’s official target of 7.5 percent.
“An important goal of maintaining stable growth is to ensure employment, and the floor of the proper range is to ensure relatively adequate employment,” he said at the meeting in Tianjin.
"By and large, [it was] an impressive reading showing resilience of the Chinese economy. It also shows that we don't need to be that concerned about the depth of slow down in China," said Dariusz Kowalczyk at Credit Agricole Corporate and Investment Bank in Hong Kong.
Other data showed factory output rose 8.0 per cent in September from a year earlier, beating expectations for a 7.5 per cent increase and up from August's six-year low of 6.9 per cent.
It's very encouraging to have this level of discussion , here.
Let me first say, I believe we have reached Peak Oil. The argument could easily be made that we haven't, with all the known deposits such as the one you mention, Green River Formation. Viability of such deposits at current WTI prices is certain.
http://en.wikipedia.org/wiki/Peak_oil
Green river is not a tight oil deposit. Extraction there will require new technologies and the cost is certain to be much higher than the cost of recovering tight oil.
http://www.slate.com/articles/health_and_science/science/2013/02/u_s_shale_oil_are_we_headed_to_a_new_era_of_oil_abundance.html
High oil prices may make it profitable to recover more oil from unconventional deposits, but ultimately physics rules. In his talk at the AGU session, Charles A.S. Hall pointed out that the energy return on investment—the amount of energy you get out of a well vs. the energy needed to produce the oil—has been getting steadily worse over time. As long as there is some net energy gain and some profit to be made, drilling may go ahead, but the benefits to the energy supply deteriorate at the same time as the collateral damage to climate (in the form of increased carbon dioxide emissions per barrel of oil produced) goes up.
The market is not laying the foundations for an era of unending oil-based prosperity. The market is pushing inexorably toward investment in expensive technologies to extract the last drop of profit through faster depletion of a resource that's guaranteed to run out. If we're going to invest in expensive energy technologies, it would be better to pick long-term winners rather than guaranteed losers.
Global growth along with a worldwide middle class explosion ensures the demand side of the equation is growing rapidly.
Cost are moving up on hydrocarbon extraction, no doubt....
The price of oil has to move up over time, no question. The recent fall is unwarranted (when you look at the big picture) and my take is oil is going higher from the 82.00 level. I'm expecting some pops in WTI has players jump in with hedges.
This brings me back to the water system. No doubt the water system making old wells viable is perfect solution at the perfect time. The niche is in the billions.
We still need to see how all this plays out with distribution of shares to the TECO shareholders. That should happen shortly.
BULL
Shareslueth and Carey....
I love that Cary fellow. That's my boy. You don't want to take what he says seriously.
He's never contacted me and has yet answer for his malicious article. To me, it's pure desperation on his part. Fiction is his forte.
Just stay tuned and watch it unfold.
Carey wrote the story I believe on Oct 7th....
The PPS was Oct 7th was 13.60....
The market without a doubt will either confirm or deny the validity of his article.
There is no way in the world that a con man criminal shill can whip a famous billionaire trader and hit piece short rag.
Somebody's lying...
Just watch and see who prevails.
BULL
It's a ST move not based on LT fundamentals. SA can't continue without suffering repercussions from OPEC. SA won't let it turn into a price war.
Enjoyed you take....
As Always...
BULL
At least we're have fun now......
BULL
It's down because Saudi Arabia output has increased to cover their debt service along with some fields coming online in Africa ....
Daily domestic production added a record 944,000 barrels last year and reached a 29-year high of 8.95 million barrels this month, according to the Energy Information Administration, the U.S. Department of Energy’s statistical arm.
Photographer: Daniel Acker/Bloomberg
Unleaded gasoline is delivered to a Shell gas station in Peoria, Illinois, U.S.
Well Depletion
Output, much less growth, is difficult to maintain because shale wells deplete faster than conventional production. Oil production from shale drilling, which bores horizontally through hard rock, declines more than 80 percent in four years, more than three times faster than conventional, vertical wells, according to the IEA. New wells have to generate about 1.8 million barrels a day each year to keep production steady, Dwivedi said.
Related:
Oil Is Cheap. But Not So Cheap That Americans Won’t Profit From It
Oil Slump Rings Alarm Bells for Nigeria as Elections Loom
Modi’s Gas Gambit Faces Hurdle of Coddled Indian Consumer
At $80 a barrel, output would grow by 5 percent, down from a previous forecast of 12 percent, according to New York-based ITG.
At $75 a barrel, growth would fall 56 percent to about 500,000 barrels a day, Dwivedi said. Closer to $70 a barrel, the growth rate would drop to zero, he said.
Decline Rates
In North Dakota’s Bakken shale, oil at $70 a barrel could cut production 28 percent to 800,000 barrels a day by February from the 1.1 million barrels a day that was pumped in July, according to Philip Verleger, who was an economic adviser to President Gerald Ford and the director of the Office of Energy Policy for President Jimmy Carter.
Photographer: Eddie Seal/Bloomberg
Horizontal drilling through shale accounts for as much as 55 percent of U.S. production... Read More
“The cash flow will go down as the prices go down, the amount of money advanced to these people to continue the drilling will dry up entirely, so you’ll see a marked slowdown in drilling,” said Verleger, who runs PKVerleger in Carbondale, Colorado, referring to the industry as a whole.
West Texas Intermediate crude, the U.S. benchmark price, has fallen 22 percent since June 20.
The price will rise to a level where more output is economic, the Sanford C. Bernstein analysts said. The flood of oil from shale is powerful enough to put a ceiling of $90 a barrel on prices through the latter half of this decade, and at times the price will dip to as low as $70, Eric Lee, an oil market strategist at New York-based Citigroup Inc., said yesterday in a phone interview.
More Bearish
There’s a risk the price will “briefly” fall to $75 a barrel before global demand recovers in 2015, Bank of America Corp. analysts said last week. They predicted an average price of $85 a barrel in the fourth quarter.
Investors are more bearish. They’re holding the highest number of short positions on WTI in 22 months, U.S. Commodity Futures Trading Commission data show.
The impact of the bear market on supply could be muted depending on how many companies locked in higher prices with derivatives contracts, Verleger said.
Shale drillers managed to keep expanding production of natural gas even after prices collapsed, said Amy Myers Jaffe, executive director of energy and sustainability at the University of California-Davis. U.S. output rose 3.8 percent to 2.6 trillion cubic feet a month in the year to July, EIA data show, even as the rig count fell in April to a 21-year low, according to data from Baker Hughes Inc., a Houston-based oilfield-services company.
I love that Cary fellow. That's my boy. You don't want to take what he says seriously.
He's never contacted me and has yet answer for his malicious article. To me, it's pure desperation on his part. Fiction is his forte.
I can't wait until that Candy eats his lunch.
Just stay tuned and watch it unfold.
Carey wrote the story I believe on Oct 7th....
The PPS was Oct 7th was 13.60....
The market without a doubt will either confirm or deny the validity of his article.
There is no way in the world that a con man criminal shill can whip a famous billionaire trader and hit piece short rag.
Somebody's lying...
Just watch BULL prevail.
BULL
There is no doubt copper is a strong indicator of any economy.
I see oil snapping back soon from the 82 level. There is little reason for it to be this low as well as commodities dip.
Water, in the future will be as strong as oil now. Way down the road, but it's coming.
BULL
Looks like all available TECO shares will be bought (just a guess) by David Koch,Sheldon Adelson and Amancio Ortega.....BIG BIG money. I'm talking HUGE.
You know when that happens, you better get ready for sure....
Stock will blow past a dollar on those SEC Form 4's and Form 13's.
Keep looking for those filings. When they hit, TECO will bolt past a dollar and may not stop there. It won't take more then 20 min after those filings arrive.
What do you think will happen if those form 4's come in?
BULL
EV, plug-in hybrid sales triple in first 9 months
Automotive News China | 2014/10/21
Sales of electric vehicles and plug-in hybrids in China nearly tripled in the first nine months of the year, thanks to generous government incentives, the China Association of Automobile Manufacturers said.
Automakers in China sold 38,163 units, including 22,258 EVs and 15,905 plug-in hybrids.
Only locally built EVs, plug-in hybrids and fuel-cell powered vehicles qualify for government subsidies in China. The maximum sales subsidy for an EV is 57,000 yuan ($9,300), while a plug-in hybrid can qualify for a subsidy of 33,250 yuan.
Fuel-cell powered vehicles, which are not yet on sale in China, can qualify for a subsidy of 190,000 yuan.
As of September, buyers of EVs, plug-in hybrids and fuel cell vehicles also are exempted from China's vehicle sales tax, which is roughly 10 percent of the car's price.
Thanks,
I needed those numbers and was just about to look them up.
BULL
Geely chairman Li Shufu said that the traditional auto industry is moving towards bankruptcy, has no market. Geely electric car business hair long, how long it takes to replace the traditional automotive offerings profitability remains to be seen. Geely's joint venture company Condit electric vehicles, lithium battery for days one can use at home, the company has been established, only rent not sell the way in marketing. Kang ...
Geely chairman Li Shufu said that the traditional auto industry is going bankrupt, has no market.Geely electric car business hair long, how long it takes to replace the traditional automotive offerings profitability remains to be seen.
Geely's joint venture company Condit electric vehicles, for the day can be a lithium battery which one to use at home, the company has been established, only "rent not sell" approach in market promotion . Condi chairman Herman Hu admitted that China promote electric vehicles for many years to no avail, the main reason is that the battery life is too short, so electric cars can use and can not have.
¦ Geely's Condi electric car launched the "micro-bus" rental service in Hangzhou, has been put 5,400 EVs.
[Attract Usage
Geely (175) 's joint venture Condi electric vehicles, for days to (819) in which a lithium users, the company has been established, only "rent not sell" approach in marketing. Condi chairman Herman Hu admitted that China promote electric vehicles for many years to no avail, the main reason is that the battery life is too short, so "(electric vehicles) can only be used, can not have."
Condi Technology for NASDAQ-listed technology companies, last year in a joint venture with Geely, founded Condi electric car company, launched in Hangzhou "micro-bus" electric car rental service.
According to reports, which rent for electric cars 20 yuan per hour (approximately HK $ 25), the charge can travel 160 km, has invested a total of more than 5,400 EVs.
Exempt owners worry about battery life
Coincidentally, BMW and Brilliance (1114) electric car joint venture company of Connaught, also launched this year in Beijing electric car rental service, daily rent 400 yuan, mainly for business users.
The French government in Paris earlier launched in 2011 Autolib electric car rental service, its users more than 10 million people, and are being extended to other cities.
Hu Xiaoming frankly, the electric car battery life is too short, causing inconvenience to the owner, "one can begin to go 160 (kilometers), after two years can only go 80, another year only 30", on the contrary, the electric car ownership belongs to the leasing company , may be exempt from the owner on battery life concerns.
It's going to be a tough go on the funding but it can be done.
If C&C committed fraud, there's a possibility the Treaty proper might not be libel.
BULL
You're talking C&C petroleum....Bruce and lee, right?
Majority of the debt is not TRRC, is it?
What micro cap does bank funding? It's mostly VC's, isn't it?
BULL
We can get a loan, but we'll have to have financials current.
That needs to be done ASAP....
BULL
He can't offer securities.....
LOL
BULL
There are no shares for sale and the poster was mistaken.
I'm not sure what made him think that, but it's definitely wrong.
BULL
You're right from the 1.9B.
The debt is negotiable and 20 to 30 % on a dollar should be about right considering the alternative.
BULL
What I see that needs to be done is a raise to 2.5B.
That should be enough to transition the company to viability.
That's 20%...
Those are my thoughts as to where it needs to be.
Those additional shares need to be rolled up into convertible notes, not parceled out.
BULL
There is no stock for sale.....
dog has lost his mind...LMAO
BULL
TECO Security Details
Share Structure
Market Value1 $8,179,731 a/o Oct 17, 2014
Shares Outstanding 1,947,554,895 a/o Aug 25, 2014
Float Not Available
Authorized Shares 1,950,000,000 a/o Nov 01, 2013
Par Value 0.001
Shareholders
Shareholders of Record 1,391 a/o Nov 01, 2013
Security Notes
Capital Change=shs decreased by 1 for 400 split. Pay-date=12-3-98.
Capital Change=shs decreased by 1 for 8 split. Pay date=08/31/2001.
Capital Change=shs decreased by 1 for 2.2 split Pay date=05/21/2003.
Capital Change=shs decreased by 1 for 8.032633 split. Pay date=01/27/2009.
Short Selling Data
Short Interest 7,997 (23.03%)
Sep 30, 2014
Significant Failures to Deliver No
Transfer Agent(s)
Broadridge Financial Solutions, Inc.
The news comes when it comes. Seems to me that all is not ready or it would be here by now.
I'm still cautiously optimistic.
It's a massive undertaking and I'm sure it's quite stressful for Chris.
The volume is too low to make a statement.
The good news it looks like TECO has bounced of it's lows and continues to limp higher.
Filings completed along with revenues will drive the future PPS. We need a some wins.
Simply stating new deals won't merit a strong price appreciation. The deals need to be completed along with revenue into company for a solid foundation to emerge.
BULL
BIG BIG pump on TECO....
Volume skyrocketing along with multiple PR,s.
A dozen 8k's and BIG BIG price appreciation...
Just look at the massive swings...
LMAO
BULL
Everything is on the table.....
NEW ORLEANS, Aug 4, 2014 /PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry, today announced changes to its management team and additions to its Board of Directors.
Chris D. Tesarski, Executive Chairman of Treaty Energy since May 1, 2014, was appointed Chief Executive Officer (CEO) of the company on July 28, 2014, following the resignation of Andrew V. Reid as its Chairman and CEO.
Mr. Tesarski stated, "The Board of Directors accepted the resignation of Mr. Andrew V. Reid as Chairman of the Board, member of the Board of Directors and CEO of the company. Mr. Reid's resignation is effective July 28, 2014. The company wishes to thank Mr. Reid for his tenure and wishes him all success in his new ventures."
Mr. Tesarski announced that, "Andrew L. Kramer, the company's Vice President, General Counsel and Corporate Secretary, became a member of the Board of Directors. In addition, I am pleased to welcome another new member as well! Rana Ghosh of Ft. Lauderdale, FL has been appointed to the Board. Mr. Ghosh brings extensive experience from the infrastructure and utility sectors of the energy business. In addition, in anticipation of completion of the compliance reporting required to bring market credibility back to the company under way currently; and an exciting reworking of the company's vision and strategy, Mr. Carl McCutcheon from Houston, Texas joins the team as, Special Business Advisor to the Board of Directors." The new leadership team is stalwart in its commitment to see TECO achieve a series of definitive and positive milestones in the coming year. Management will bring that definitive action plan to shareholders following its first official board meeting in September.
"Carl will also take the lead in helping to add a critical member to the Board in the fall, an individual who will bring extensive engineering and geotechnical experience, to give Treaty Energy a fully developed, energy-focused Board of Directors to guide the company through its next phase of development," added Mr. Tesarski.
A more fulsome biography of the new Board members will be provided to the shareholders by via the company's Facebook Page and website.
Effective immediately, the Board of Directors will be taking steps to create a new corporate identity for the company, rooted in a firm belief that the "Americas" hold vast untapped, bypassed and forgotten energy reserves. "The company intends to continue its focus on 'finding new oil and gas in old places'. We believe that this is the right place for us to be and welcome other players who focus on exploratory, wildcat plays, but Treaty Energy will continue to focus on what we KNOW got left behind instead of risking shareholder value on what we BELIEVE might be there," says Mr. Tesarski.
In keeping with this philosophy, the company has evaluated the seismic data available on its Damon Salt Dome prospect in Brazoria County, Texas, and will proceed with permitting its initial location within a week. The technical team of Aquinas Energy Resources, Inc. (Aquinas) of Houston, Texas, has further mapping that is being completed in days that will give a full geotechnical snapshot. This snapshot will be beneficial to the company as it proceeds to drill all of its locations.
"We are so very pleased with our relationship with the skilled technical team we have found in Aquinas," says Tesarski. "Their consummate professionalism, attention to detail and expertise lend credibility to this process that we are about to embark on. To this end the company intends to utilize the Aquinas team as an integral part of evaluating all of its continuing operations technically to ensure that shareholder value is maximized and risk is minimized. We believe this also opens the door to further opportunities in the future for Aquinas and Treaty Energy to work together in a more formal relationship."
Treaty Energy intends to reestablish and enhance its position in Central America. Mr. McCutcheon, who will act as Special Advisor to the Board of Directors, brings a wealth of business experience in this area. Through his contacts and the addition of significant geotechnical expertise and data, we believe that we can show that the company may have had good ideas, but good ideas need to be backed up by solid, irrefutable and quantifiable data. Armed with this, the company can vigorously pursue activities in Central America, which will positively impact its operations.
Mr. Tesarski added, "It is my hope that the announced leadership changes and additions, and this update will give a clear message as to the direction the company is headed. We will enhance not erode shareholder value and to do so we need to take decisive and definitive steps that sends a clear message to our investors, both current and the ones that stand ready and waiting to invest in the company, that Treaty Energy is ready to do business! It is time to get to work."
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTC. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
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 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
SOURCE Treaty Energy Corporation
Texas Sands Resources will be the operator of the project and will be applying for the first drilling permit based on a location that will be chosen by the company in conjunction with technical guidance from Aquinas' Geologist, Bill Gaskin. Prior to drilling, Aquinas Energy will be providing Treaty Energy and Texas Sands Resources with Seismic data for management's review to ensure that the wells provide the maximum return on investment at the lowest risk possible.
This initial agreement covers four well locations on the Belle Wisdom Lease located approximately 45 miles southwest of Houston in Brazoria County, just outside of Damon, Texas. The lease is geologically positioned in the Damon Salt Dome area.
The four wells are expected to be drilled into the Marge and Frio Attic pay zones and will range from 4,000ft to 5,000ft in depth. Based on historic well production data, anticipated initial production rates on these wells could yield at least 100 BOPD per well. According to geological data, there are more than 440,000 barrels of recoverable reserves on the Belle Wisdom lease.
Treaty Energy will receive 80% of the net revenue from production, until initial investment payout, and then 70% of net revenues after payout of all costs. This farmout agreement is supported with substantial technical data that will be posted on the presentations page on the Aquinas Energy website (http://www.aquinasenergy.com/presentations.html) for investors to review.
On this matter, Mr. Tesarski stated, "I am thrilled to announce that we have moved quickly from the LOI announced on May 15th to the executed farmout agreement on such a timely basis. This project will be the first new drilling program for the Company's new board of directors to oversee and will mark a new chapter in Treaty Energy's history. The project has the potential to provide a tremendous revenue stream for Treaty Energy. In addition, after the first four wells are drilled, shareholders should look forward to other drilling opportunities on over 31,000 additional acres controlled by Aquinas Energy."
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Fax: 504-324-0844
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTC. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Sounds Great....
More systems are going into this one site. Pictures below.
Reid, Gwen, and Blackburn are out. That's a fact. Anyone that says differently, is blowing smoke. There are no strings attached, PERIOD!
TECO Updated
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
No, Darn, I was hoping to find a k and Q, Pennies from heaven...
Best of Luck to you.
BULL
I posted it for you to see before when you said the same thing.
Go back and find my reply. It is there for all to see that want to know the truth. Are you saying he is not?
Bullish.......
We're looking at pennies soon.
But don't tell anybody.
BULL
Very interesting news on the Kandi Short Seller....Cuban
http://video.foxbusiness.com/v/3845330647001/mark-cuban-on-demand-car-service-is-exploding/?intcmp=world_topics#sp=show-clips
BULL
Fully Supported to the utmost extreme.
Just Look,
Amazing, Clean Clean, Water...Wow,
It's even drinkable
https://www.youtube.com/watch?feature=player_detailpage&v=JPjWUinaN-w
It's hard to catch the first time, you just need to play it over and over and over...
I just can't say enough....
Extremely viable.
They're arriving to buy with checkbooks in hand and not only for the system, but to invest.
This is going to get interesting quickly.
More systems are going into this one site. Pictures below.
Reid, Gwen, and Blackburn are out. That's a fact. Anyone that says differently, is blowing smoke. There are no strings attached, PERIOD!
TECO Updated last night...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
.... Extremely viable.
They're arriving to buy with checkbooks in han
The water system is taking off.... Extremely viable.
They're arriving to buy with checkbooks in hand and not only for the system, but to invest.
This is going to get interesting quickly.
More systems are going into this one site. Pictures below.
Reid, Gwen, and Blackburn are out. That's a fact. Anyone that says differently, is blowing smoke. There are no strings attached, PERIOD!
TECO
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
Very Focused in the oil industry...
The water system is taking off.... Extremely viable.
They're arriving to buy with checkbooks in hand and not only for the system, but to invest.
This is going to get interesting quickly.
More systems are going into this one site. Pictures below.
Reid, Gwen, and Blackburn are out. That's a fact. Anyone that says differently, is blowing smoke. There are no strings attached, PERIOD!
TECO Updated last night...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.