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Two factual updates from Belize today.
[1] The March 2014 concession map of Belize shows that concession holders Princess Petroleum have relinquished another 500,000 acres of their concession offshore. Leaving them with 1,000,000 acres (200,000 of which is onshore).
Belize Concession Map 2014
The Belize Operations page on Treaty Energy Corporation website does not reflect this fact or the ones I have reported to you previously, that:
(a) Treaty no longer has any representative in Belize
(b) Treaty's partnership rights to explore Princess Petroleum's acreage in Belize lapsed on 31st January 2014. [Formerly Treaty Energy Belize operated this concession on behalf of the Princess Petroleum / Treaty Energy Corporation joint venture established in the Option Agreement dated April 20th 2010]
(c) The status of the three wells drilled by Treaty. Princess Petroleum have advised that the three wells drilled by Treaty in Belize have all been plugged and abandoned. My visit to the wellsites (with photos shared here earlier) showed that San Juan 3 was plugged and abandoned recently, that San Juan 1 was plugged and abandoned some time ago and that San Juan 2 may or may not be plugged and abandoned.
[2] A non-commercial oil find in Northern Belize was announced on Wednesday March 26th by the Prime Minister of Belize but not yet by the concession holder Maranco. Subsequent newspaper articles revealed poor rock quality, low API oil and poor test flowrates.
Channel 7 News Report Wednesday March 26th
Guardian Newspaper Report (published by UDP Government Political Party on Thursday March 27th)
Amandala Newspaper Report (published on Friday March 28th)
Cheers
Belize Oilwatch
Just facts from Belize
I visited Treaty's Belize wellsites and equipment storage area yesterday - on the way to go scuba diving in Placencia.
San Juan 3 has been plugged and abandoned. Evidence of recent cementing activity can be seen at the site. Site has been rehabilitated. Well has been capped with no valve / open valve. location N 16 33.843' W 088 31.131'.
San Juan 2 may or may not have been plugged and abandoned as there was no evidence of any recent at the site. The well has been capped with two closed locked valves. location N 16 31.854' W 088 30.230'.
Sign for San Juan 1 & 2 Wellsite is lying beside access road to San Juan 2 wellsite.
San Juan 1 appears to have been plugged and abandoned, but there was no evidence of any recent at the site. Road access to site has been cut off (due to need for drainage culvert to operate in the wet season). Well has been capped with no valves. Pressure gauge on top cap is broken. location N 16 31.889' W 088 30.688'.
Treaty drilling equipment was located stored in rear lot of Escalate's Service Station. location N 16 31.902' W 088 25.793'.
More detail of the equipment stored at Escalante's.
Escalante's service station is on the road into Independence.
All photos were taken between 7:08 and 7:50am on Friday March 21st 2014. Location coordinates are reference to NAD27 Central.
Cheers
Belize Oilwatch
Just facts from Belize
"As I grow older, I pay less attention to what men say. I just watch what they do." ANDREW CARNEGIE
So shall it be with TECO.
Cheers
Belize Oilwatch
Belize City, Belize CA
It will be interesting to see if an 8k is filed on this.
Cheers
Belize Oilwatch
Princess Petroleum and Government of Belize both say they lost the opportunity for several years of good exploration of the Princess concession, because of Treaty.
Belize's main industry is tourism split between cruise ship passengers (who spend an average of $60 US per passenger) and overnight visitors (who spend an average of $850 per visitor) - based on the latest complete data.
I find it hard to believe that Treaty shareholders would have more money to spend on holidays than the general American public.
What is the basis for your 8000 visitors at $1000/day?
Cheers
Belize Oilwatch
Belize City, Belize CA
It is not great news for anyone. IMO
Oil in Belize is proving harder to find than expected and Spanish lookout oilfield is declining much harder than expected.
The Belize "Coalition to Save Our Natural Heritage", which includes all the leading environmental NGOs,is:
"An organization dedicated to the planned development of Belize's petroleum industry, outside of economically and environmentally sensitive areas of Belize (offshore and protected areas)."
It's mission is:
"To serve as a channel for the voice of the people through advocacy, education, research and actions, which promote the best interest of Belize and its people"
I have heard that Spanish lookout is producing from a Sandstone rather the Limestone that we all thought it was producing from - and that accounts for its very steep oil production decline. But that is subject to confirmation.
Cheers
Belize Oilwatch
Belize City, Belize CA
TD do you have any facts to support your assertion that Tucker and Schlumberger didn't do any work for Treaty in Belize?
I saw the photos of Schlumberger apparently working for Treaty posted on Treaty's Facebook page.
Tucker are present in Belize, they are the wireline service contractor for BNE.
Schlumberger don't have any presence in Belize.
I'm going to Belmopan on Tuesday next week. I will stop by the oilfield support compound and ask Tucker if they did any work for Treaty in Belize - if that would be helpful.
Cheers
Belize Oilwatch
Belize City, Belize CA
You shouldn't put down Princess like that.
Mr. Sudi Özkan, the president and chairman of the Princess Group of companies is a director of Princess Petroleum. According to their website, Princess Group has widespread hotel and casino holdings in the USA and other countries.
Mr M Hamdi Karagozulu, the CEO of Princess Group International (who is based in Panama City and Belize City) is a director of Princess Petroleum.
Mr Rodwell Williams, of Barrow and Williams law firm, attorney to Princess Petroleum and Treaty Energy Belize is a director of Princess Petroleum.
The principals of Princess Petroleum, who purchased the 20,000,000 shares @$.005ea are:
White House Falls Corporation (which I assume to be a holding company for Princess Group) and Mr M Hamdi Karazogulu.
(Ownership of companies in Tortolla BVI is very difficult to establish.)
Why are you obsessed with the 20,000,000 Treaty shares?
I have given all the information I have on Princess in this and the previous 2 posts.
Cheers
Belize Oilwatch
Reference the transactions that Treaty used to buy into the Princess Concession in Belize.
I have tried to untangle the web here.
The facts according to the SEC filings are:
(1) The principal shareholder in Treaty sold 20,000,000 shares to the Principals of Princess Petroleum for $100,000 US ($0.5c/share).
(2) Treaty Energy Corporation agreed to repay the Principles of Princess Petroleum the $100,000.
There are no facts available in Belize to show who received the 20,000,000 shares, or what was done with them, and whether the agreed $100,000 repayment from Treaty has been received by the principals of Princess Petroleum.
Rodwell Williams is a director of Princess Petroleum Ltd as he is PM Dean Barrow's law firm partner, and they were and still maybe Treaty's attorneys in Belize. see Barrow and Williams Law Firm
I have met M Hamdi Karagozoglu in the Princess Hotel in Belize City before Xmas and he gave me his business card. However I am not going to publish that here. He is Executive Director of Princess Group International. see Princess Group
I am totally unaware of the other gentlemen, Sudi Ozkan, mentioned as a director and can find no information on White House Falls Corporation (of Tortolla BVI).
Cheers
Belize Oilwatch
Princess Petroleum Ltd Information.
Princess Petroleum Ltd.
Newton Barracks
Belize City, Belize
Directors: Sudi Ozkan, Mehmet Hamdi Karagozaglu, Rodwell R.A.Williams
Shareholders (Share capital $10,000):
White House Falls Corporation (Tortolla BVI) 9999
Mehmet Hamdi Karagozaglu 1
Parent Corp: Princess Group International, a US-based hotel and casino company, and owner of Princess Hotel in Belize City
This in itself sounds like fraud.
"the Company has discovered that the principal shareholder sold 20,000,000 shares of his Treaty stock to the principals of Princess Petroleum, but that in connection with this transaction, the Company agreed to repay the principals of Princess Petroleum $100,000"
It is my understanding that fraud like this has happened in the past where the business interests of CEOs get confused with the business interests of the company he/she manages.
Am I the only person that sees this?
Sounds like the auditors were trying to do their job and alert shareholders and SEC to what was going on back then that they "discovered".
Cheers
Belize Oilwatch
Above is opinion based on information from the USA
Deal was done in Panama. Option Agreement between Princess Petroleum of Belize City, Belize CA represented by Hamdi Karagozoglu and Treaty Energy Corporation of Nevada represented by Andrew Vincent Reid dated 20th April 2010.
Treaty should have disclosed details of the deal in SEC reporting around that time - can someone check?
Cheers
Belize Oilwatch
Belize City, Belize CA
At the meeting, Princess Petroleum Ltd stated that they don't want me to keep asking about Treaty as they believe it inhibits their progress. As an oil company they want to look forward not back.
What I posted in my previous post were the facts that Princess told me (that I have independently verified as the truth).
At the end of a long discussion over lunch, I promised Princess that if they answered those questions I wouldn't trouble them with anything else about Treaty.
But your clever editing of my text has caused me to write this rebuttal of what you imply in your reply to my post.
Additional information coming out of the conversation is presented below. I wouldn't normally share the information below but I have included it here to prove that I am very selective about making sure that I only post facts and the truth on this board - unless I clearly label the information I present otherwise.
Treaty shareholders should consider the information below as hearsay (or previously stated facts - as indicated), which is why this information from my meeting with Princess was left out of my previous post.
It would be good if all posters on this board made a similar distinction between facts (the truth) and hearsay - in my opinion.
Cheers
Belize Oilwatch
Belize City, Belize CA
---------------------------------------------------
What I didn't post, in my previous post, from the discussion at the lunch meeting yesterday with Princess Petroleum and one of their contractors (who was working on their abandonment of the three wells) were a lot of Princesses opinions about Treaty which I find unbelievable (and could not prove or disprove), which were:
- The staff Treaty sent to Belize initially were all inexperienced in the oil industry and had no international oil exploration or drilling experience
- The first well was drilled by an American (who was sent over to build the Schramm rig after shipment from the USA) and two Belizeans (one of whom is still a Princess Petroleum Employee). None of whom had ever drilled a well before in their lives. The well results may have been different if it had been drilled more professionally.
- The second well was drilled by an experienced American driller and a drilling crew including two Belizeans with BNE drilling experience. It was also drilled after additional equipment - also used on the third well - had started to arrive. The well took only 3 weeks. Princess and Treaty were disappointed with the result.
- The first and second wells were drilled in the dry season and both wells progress was hampered by lack of water, especially when needing to fill the hole when circulation was lost. In fact on the second well Princess had to call the local fire brigade to bring water (and they were happy that I didn't pass by the wellsite at that time and photograph that!).
- The third well was abandoned with the stuck packer still in place.
- Princess Petroleum have issued only one press release in their history, as neither they (nor the Government of Belize) have any interest in negative publicity.
- Princess are mad at Treaty for wasting the first 4 years of the exploration period in their concession. So they only have 4 years left to explore the whole concession.
- Princess are happy that Treaty have gone.
And then there are facts that I have told you before, and I didn't see the benefit of telling you again, like:
- By the third well, Treaty looked like a professional drilling operation (substantiated by my visit to the well site and photos)
- Max Mohamed no longer works for Treaty (substantiated previously by the Government of Belize)
I had lunch at Princess Hotel today with Princess Petroleum and their contractor.
They were unhappy with Treaty and unhappy with me continuing to ask questions about Treaty (which I had been bugging them with all week).
They were much happier to talk about their exploration hopes for their acreage in Belize.
So I read the Treaty February 24th newsletter to them then asked my questions to which they responded:
(1) There is no agreement in place between Treaty Energy Corporation
(2) All three wells SJ1, SJ2 and SJ3 have been abandoned (I was shown photos of the cleared and restored SJ3 well site).
(3) Treaty equipment is still in Belize in safe lock-up (I was shown photos of the facility)
Cheers
Belize Oilwatch
Just the Truth from Belize
Just woke up from a long sleep.
Does this mean Treaty didn't meet the 1000 bpd production target that they were forecasting 2 years ago in this link Treaty Announce Goal of 1000 BOPD by Mid-Year 2012 ?
Who was on watch while I was asleep? Where's all the oil gone? Just 3 bpd in December 2013 - you must be ******* joking.
Also Treaty's video surveillance cameras must not be working - as they appear to show oil production that doesn't reflect in the official production numbers.
Cheers
Belize Oilwatch
No you can't take Treaty PRs or information on Treaty Website as fact.
Best first to compare Treaty PRs and website against what actually happened, and you will find unfortunately that they contain misinformation (which is a nice word for not telling the truth).
Comparing today's Treaty Website against the truth, for example:
--------------------------------------------------------
Treaty Website
About Treaty Energy Corporation
"Treaty Energy Corporation is a profit and growth-oriented energy company focused on utilizing strategies and techniques that maximize crude oil and natural gas recoveries in volume as well as investment dollars spent. Treaty's acquisition and development plan is well defined and crucial to this process."
-
The truth:
Treaty have never made a profit and haven't grown their energy base (they have close to zero energy assets).
--------------------------------------------------------
Treaty Website
Belize Operations
Overview
•Operating on 1,500,000 concessionary acres in Northern and Southern Belize
•Concession located both on-shore and off-shore for future expansion
•Entirely self-sustaining single-tier drilling program with $1,600,000 in assets
•Two completed exploratory wells confirming presence of Campur carbonate.
•Three identified areas of interest for future exploratory operations
-
The truth:
- Agreement with Princess has lapsed - so they have no rights to any acreage
- Under Option agreement Treaty lost their offshore rights in 2012 by missing deadlines as agreement was designed to give them a share in the areas that they actually did work in.
- Drilling program was not self-sustaining (conversations with people close to Princess make me believe that Princess have impounded Treaty assets due to amounts owned to Princess by Treaty)
--------------------------------------------------------
Treaty Website
Belize Well Status
Well Name Drilling Status Operational Status
San Juan #1 Completed On-going analysis
San Juan #2 Completed On-going analysis
San Juan #3 Drilling Drilling
-
The truth:
Well Name Drilling Status Operational Status
San Juan #1 Completed Dry Hole P&A Program Submitted to GPD
San Juan #2 Completed Dry Hole P&A Program Submitted to GPD
San Juan #3 Suspended Dry Hole P&A Program Submitted to GPD
--------------------------------------------------------
I don't really have time to do the PR comparison that you suggest but my sworn statement posted here on December 16th and signed and submitted to the SEC on the same day documented several of the major discrepancies between Treaty PRs and the truth from late 2011 until now.
Good luck with it all.
Cheers
Belize Oilwatch
Certified Petroleum Engineer
Belize City, Belize CA
Treaty are Gone From Belize.
I had a breakfast meeting at the Princess Hotel in Belize City this morning and then I attended a meeting with NGO and Government of Belize representatives in Belmopan.
A source close to the Government of Belize advised "off the record" that Treaty did not extend their agreement with Princess which expired on 31st January 2014. And, in his words, "Treaty are gone from Belize .... and Princess are taking the responsibility to Plug and Abandon the wells".
Cheers
Belize Oilwatch
Just facts from Belize
A newsletter without news - not very encouraging.
Newsletter content breakdown analysis:
56% General and Administrative (intro, riders and long explanation of how frequency is going down because there isn't any news)
32% Legal
12% Financing (saying twice that Kubacak financing isn't yet in place)
0% Texas operations (Is an oil company with no oil operations a concern to shareholders?)
0% US Drilling operations (is anything going on? What about all the Louisiana drilling that we were told they were contracted to do?)
0% Belize operations (no surprise - they haven't been here since before Xmas)
Cheers
Belize Oilwatch
Just facts from Belize
Oil exploration 101 - Before you drill a well there isn't a hole there to be called dry. So you have to drill to find if there is oil there or if the hole you just drilled is dry.
And I agree that oil exploration is a risk business, and not all wells are commercial. Real oil companies use technology and experienced people to improve the chance of success.
Cheers
Belize Oilwatch
Comparing Treaty to real oil companies must be done.
This is what my oil company did last year:
"We drilled 17 exploration wells – two years ago we were drilling about eight. And we had seven commercial discoveries.” They include discoveries in Angola, Brazil, Egypt, the Gulf of Mexico and India."
See - Bob Dudley hails ‘best year for exploration in a decade’ at BP
What did Treaty do?
Partially drilled one exploration well - found Nada.
This information is not taken fromTreaty Energy website Belize Operations which still says that the status of San Juan 3 is drilling, but is taken from Channel 5 News Belize 17th December 2013 which states "All the machinery has gone" (the rig and ancillary drilling equipment is no longer at the wellsite) and "They didn't find oil" (They drilled a dry hole).
I admit that my company, which initially was totally focussed on wildcat exploration, took 7 years from first investment to positive cashflow.
But companies like Treaty Energy Corporation in the USA who focus on infill drilling in existing fields should reach positive cashflow in one or two years according to current information on investment opportunities in oil and gas, as those investments have very different risk/reward characteristics to wildcat exploration.
See Oil and Gas Investments Home Page
Cheers
Belize Oilwatch
Just facts from Belize
I often trust the grapevine more that TECO IR.
For me the quality of information from the grapvine depends on who is passing on the information IMO.
Whereas TECO IR have been fairly consistently passing on misleading information (regrettably I have facts to back up this statement it is not just my opinion).
Cheers
Belize Oilwatch
San Juan 2 was the first well drilled by Treaty in Belize.
Why not this well wasn't called San Juan 1 is not clear, as the inverted well numbering of the first two wells leads to unnecessary confusion.
Treaty reported detecting gas in the wellbore while drilling at certain depths and Geology and Petroleum Dept reported dead oil shows (tar) in their denial of an oil discovery in this well.
Cheers
Belize Oilwatch Consulting Ltd.
[Answer from UK Certified Petroleum Engineer on our team]
Newsletter for the Week of January 13th, 2014 about Treaty (Belize) Energy Ltd Operations
This newsletter is Newsletter for the Week of January 13th, 2014 about Treaty (Belize) Energy Ltd Operations
This newsletter is for the week of January 13, 2013 and contains current best information on Treaty Energy Belize Ltd operations in Belize as of December 10, 2013. The information contained in this newsletter is based on Belize Oilwatch's understanding of the status of Treaty Belize operations at the time of release.
This newsletter is not to be confused with the official newsletter planned for issue today by Treaty Energy Corporation in New Orleans Louisiana USA which may contain partial or misleading information about Treaty's activities in Belize, similar to the sets of information which were contained in the previous newsletters issued by Treaty Energy Corporation on December 9th and 16th 2013. Those issues of the newsletter can be found on Treaty's website located at http://www.treatyenergy.com/investors/news .
Belize (Treaty Belize Energy, Ltd):
- Operations in Belize are conducted on a joint venture basis with the concession holder, Princess Petroleum Ltd of Newton Barracks Belize City. Under the agreement between Treaty and Princess, Treaty is liable for the costs of the first 9 wells, while sharing any oil production 50:50 with Princess.
- Commercial oil has not been found in San Juan 3 well. Treaty and Princess have therefore decided to plug and abandon San Juan 1 (a dry hole) and San Juan 2 (which had some indications of the presence of sub-commercial oil) as well as San Juan 3 (also a dry hole).
- Princess Petroleum Ltd, as concession holders, have submitted Plugging and Abandonment plans for San Juan 1,2 and 3
which have been approved by the Director of Petroleum. They anticipate completing the P&A programs on the three wells in the first quarter of 2014.
- Treaty and Princess have therefore rigged down and moved the rig and other equipment from the wellsite to a safe lock-up area in Independence Village.
-As previously reported, Treaty has reached an agreement with Princess Petroleum to continue operating in Belize until January 31, 2014. Treaty plans to make changes to its international operations before the January 31, 2014 date and will announce any and all changes in compliance with SEC regulations (particularly form 8-K section 1 and section 2).
- Princess meantime are conducting a strategic review of their exploration concession in Belize.
- Max Mohamed has left Treaty Belize Energy Ltd. Treaty has not replaced him as CEO of Treaty Energy Belize Ltd. and in the meantime Treaty operations in Belize will be carried out by Princess Petroleum Ltd.
- Mr. Mohammed will be returning to Belize in January 2014 to assist Princess Petroleum with the P&A of the three wells.
Newsletter issued by:
Belize Oilwatch
Belize City, Belize, Central America
Newsletter contains facts and opinions based on best available information about Treaty Energy Belize Ltd activities in Belize.
Scan of Petroleum Register Extract for Paradise Energy - as Promised.
The Extract From the Petroleum Register of Belize for Paradise Energy Received from Geology and Petroleum Department of the Government of Belize in Belmopan Belize on Wednesday January 8th 2014
(Click on picture to see it better - they supplied an A3 sheet of paper which was difficult to scan and may be difficult to see in this post)
Receipt from Geology and Petroleum Department of Ministry of Energy Science & Technology & Public Utilities of the Government of Belize for The Extract From the Petroleum Register for Paradise Energy received at in Belmopan Belize Wednesday January 8th 2014
(Click on picture to see the whole of it - if necessary)
Cheers
Belize Oilwatch
Just Facts, From Belize
Paradise Energy Concession - the facts.
Further to post on ihub the other day, which I advised was based on hearsay.
Today I obtained an extract from the Petroleum Register of Belize for Paradise Energy Limited concession from Geology and Petroleum Dept in Belmopan, Belize.
The Petroleum Register is maintained as the official record of oil concessions in Belize by the Director of Petroleum.
The Petroleum Register extract for Paradise Energy shows:
Name: Paradise Energy Limited
Office Address: #14 Main Street, Orange Walk Town
Local Representatives: n.a.
Principals: Miles Tropical Energy Ltd and Erubiel Ku
Assignee: None
Exploration period: 8 yrs
Effective Date: June 21, 2010
Original Acreage (& Acreage Retained): 1,394,662.86 acres
[I will scan and post the actual extract I received and my receipt - in due course]
This directly contradicts the information provided to the SEC by Treaty Energy Corporation in August 2011, Treaty Energy Corp 8k filing with SEC August 30th 2011, which advised that Treaty Energy Corporation had entered into an agreement to purchase this concession.
Cheers
Belize Oilwatch
Just Facts, From Belize
Over breakfast at the Princess Hotel in Belize City last month, I heard a Princess Petroleum employee say that the Paradise Concession deal with Treaty never went through.
Just heresay I am afraid. But thought this was relevant information to pass on right now.
If any of you want to check you can always call Keon Garbutt of Princess.
I am done with all this.
Cheers
Belize Oilwatch
2013 - Not a good year for Treaty by any measure.
And I expect Treaty will pay the CEO another $240,000 for his year's work as they did in 2012.
Looking through the 2012 Annual Report, to confirm the above number, I discovered that CEOs name appeared approximately 44 times.
Not in the normal way that you would expect a CEO would feature in an annual report - telling people what he achieved in the year and his great plans for the future.
But instead, the search of his name in he 2012 annual report, showed the many packages of shares issued by Treaty issued to him to extinguish debts to him or his affiliated companies (all were issued at a loss to Treaty sometimes at huge losses) and then they issued even more shares to him for services (including helping to arrange financing - which should be part of his CEO job in any case).
Then in other parts of the report, the CEO is shown selling back packages of shares to Treaty.
Looks to me like a nice little cash generating scheme - in my opinion. With most of the activity in share sales and transfers and no underlying oil company operating cash or profit being generated - to make sure that Treaty survives as a going concern.
Reminds me of Custer's last stand. Not long now until the end I suspect.
I'm not watching Treaty in Belize any more. There is no equipment at San Juan 3 wellsite and they have no presence here.
Whatever happened of Treaty Belize Energy, the drilling at San Juan and its promises to the community?
Maranco on the other hand are getting on with it in North west Belize. In less than the time that Treaty took to drill the San Juan 3 well (which hasn't even reached target depth), Maranco have: Drilled an exploration well (South Canal Bank 1); Shot additional seismic; Drilled an appraisal well, and communicated all the results to their shareholders (while seeking new investors).
LATEST NEWS FROM MARANCO ENERGY BELIZE LIMITED
What a contrast - make your own mind up - which is acting more like a real oil company?
Cheers
Belize Oilwatch
Suggest you call Keon Garbutt of Princess Petroleum for the list you are looking for.
For his number see one of my previous posts (He told me that his mobile number could be used as a contact number for Princess Petroleum).
Cheers
Belize Oilwatch
Does anyone have the link to the online attorney opinion on the allegedly stolen rig being used in Belize?
If so please could you share.
Cheers
Belize Oilwatch
Two issues that you might like to think about:
(1) I don't see $2 million of equipment here (IMO)
(2) Do Treaty own the equipment they have here in any case?
Cheers
Belize Oilwatch
Reporting from Belize
Update from Belize.
Had a chance meeting with Princess this morning at their Hotel coffee shop when I went to the hotel to pick-up a friend.
They told me that P&A of the three wells has been confirmed by Andre Cho on national TV, see link
Whatever happened of Treaty Belize Energy, the drilling at San Juan and its promises to the community?
At the same meeting it was revealed that the rig is no longer standing over the SJ3, it has been put down.
Cheers
Belize Oilwatch
Just facts from Belize
Thanks for reading to the end for full story.
This could be the last nail.....
Please find below a statement I have sworn in front of a Justice of the Peace today in Belize City, Belize, Central America.
Based on the facts in the Sworn Statement below, you decide whether this is the last nail in Treaty’s coffin (the end) or the last nail in the Great Western Railroad (the start of something really big).
Time will judge. I am done.
Cheers
Belize Oilwatch
--------------------------------------------------------------------------------------------------------------------------------
Sworn Statement about Treaty Energy Corporations Activities in Belize
I first got interested in Treaty in July 2011. I volunteer for the Belize Humane Society and I was taking a young Belizean volunteer to Independence Village to drop off a puppy “King Arthur” to catch the Hoky Poky after taxi to Placencia. Belize badly needs the revenue from and oil industry, the Belizean volunteer was a school kid interested in his country’s future and I was a recently retired oilman proud of the oil industry – so I wanted to take him along to show him Treaty’s 5 proposed drilling locations in the area.
The locations were posted in a geological study on Treaty Website, so I plugged them into my GPS and off we went. I was very surprised and disappointed that most of the locations were in places that I couldn’t even access in my SUV but (prophetically as it turns out) I showed him one road to a fish farm away from the posted locations and told him “that is the kind of road that an oil company would need to move drilling equipment to a wellsite”. Interestingly that was the road than Treaty drilled from for San Juan 1 and 2.
The reason I was there was that Andrew Reid Treaty CEO had stated “"Ongoing developments and significant preparation in Belize are proving advantageous to a successful drilling program. Upon arrival of the drilling rig and support equipment by sea on or about July 24/25, our Company will move ahead with an oil program that holds the potential to be a magnificent life changer for all Treaty stakeholders and the people of Belize."
See link
That experience led to emails and calls to Treaty’s CEO, so that I could find out what was going on. And when activity actually started and Treaty held a press conference in Belize City on September 27th 2011 for the foundation of BELIZEAN NATIONAL LEADERSHIP FUND, I joined up Treaty Facebook as did many other interested Belizeans. And I was seen in news reports of the event and in photos with a preacher (Jimmy LaRose) and a bishop (Rev. Redfern II), both Treaty Charitable Trust Directors, despite my attempt to keep a low profile at the event.
Many Belizeans didn’t trust Treaty (represented by Brian D. Luczywo at the time) or Treaty Charitable trust (represented by the two reverends) at the Press conference. I met the two reverends later at the municipal airport and invited them into my house to meet my wife and have a cup of tea. They were just returning from Placencia where Treaty had just donated a truck or something (I thought it was strange at the time for Treaty to be donating stuff before they had actually invested anything in the business itself - but I let it pass).
One thing led to another and my posts, which were based on facts of what I had seen of Treaty’s operations in Belize and my experience of the international and Belize oil, were removed from Treaty’s Facebook and I was prevented from access to the site. I responded with an email to Treaty defending what I had said and requesting they restore my Facebook access or I would report them to the SEC. Treaty responded to this, with a letter from a Louisiana Attorney on October 18th 2011, threatening action under Louisiana law unless “I cease and desist” and a letter from a Texas lawyer notifying me that what I said in my email constituted “blackmail” and threatening action under Federal law.
I continued to post the facts of that I see and hear of Treaty Belize operations on Ihub: Sometimes at the cost of being chased with a machete when I slowed down at Treaty’s inactive wellsite in Belize (on a trip to Placencia - this time with a different young Belizean Humane Society volunteer) on 9th June 2012 and more often at the cost of receiving insults and real name allegations from a few members on Ihub (and later on iHangout).
On February 13th 2013, I Submitted a TRC complaining about “Material misstatement or omission in a company's public filings or financial statements, or a failure to file“ to the SEC about Treaty Energy Corporation on three counts:
(1) Misleading shareholders by stating that exploration prospects in their exploration area were similar to the successful Spanish Lookout Field;
(2) Quoting falsely high production in PRs, and
(3) Claiming a false oil strike.
By the time of San Juan 3, I visited the wellsite numerous times with Treaty’s permission. During these visits, Treaty Belize asked me to keep the details of the well confidential - which I have done, I was allowed to post photos of the wellsite on Ihub and I passed a selection of the photos that I took to Treaty and they used one of these to illustrate their international operations in Belize. My wife even visited the wellsite with me and she considers Max Mohamed a friend as much as I do. She even took a photo of us both and visited the wellsite again with my son on their way to Punta Gorda while I was at home.
So with Max Mohamed as a friend, I started communicating with him regularly and he occasionally asked me for oil industry advice – sharing our professional experience, him as a geologist and me as a Petroleum Engineer. Under the terms of Treaty’s request for confidentiality, he felt able to show me the well logs and I even helped him look for the VIN number of the rig (he wanted it to be able to order spare parts and I wanted it to pass to interested third parties in the USA who asked for it as part of their discussions with Homeland Security).
So a couple of weeks ago, my wife was going to go on a Placencia trip for the Belize Wildlife Conservation Network, while I stayed at home, and I tried to contact Max Mohamed to see if he would be at the San Juan 3 wellsite for her to visit. I got no response from Max to phone calls, texts and emails, so I contacted Keon Garbutt of Princes Petroleum who advised that Max was in the USA.
I posted an update on this on Ihub on 4th December.
See Link
Then when I was following up about the stuck SJ3 packer at the request of a third party, I received additional shocking information that Max Mohamed was no longer working for Treaty which then posted on Ihub on 6th December.
See Link
Treaty made statements in their December 9th newsletter which – in my opinion – we very misleading about their operations in Belize, based on my local understanding.
http://www.treatyenergy.com/news/treaty-energy-corporation-newsletter-week-december-9-2013
I didn’t know what to do about Treaty’s false statements except share them with Max Mohamed and do nothing, which he thought was funny.
Subsequently, Max Mohamed advised that if I revealed what he told me there might be legal implications for him. So he suggested that I check about his employment status with Treaty with Geology and Petroleum Department of the Government of Belize which I did on December 12th. I talked directly to Andre Cho, the Director of Petroleum. What he said in that phone call and a further follow up call with Keon Garbutt, during which he specifically gave permission for US interested parties to contact if they had queries, I then posted verbatim on Ihub on December 12th.
See Link
Later on December 12th 2013, I wrote an email to Sean in Treaty IR asking that in the course of updating their website they removed my photo which with the well status posted there – in my opinion – were misleading.
(see email 1 transcript below)
On Friday December 13th 2013, I received an email with various legal requests and false statements from Sean in Treaty IR. It included:
“At this time, we formally ask that you please cease and desist on the matter.”
“Furthermore, we formally request that you cease communications with our Company.”
(see email 2 transcript below)
As I am unable to respond to Treaty about their email, following their email, I have prepared this sworn statement of facts to post on Ihub to inform Treaty shareholders who can take this up with the Treaty in due course.
I swear that this a true statement based on my recollection of events.
I will be posting this statement on Ihub.
I will be copying this statement by email to my Belize and US attorneys, who have not reviewed this in advance.
I will be copying this statement to the SEC.
Signed:
Name:
Date:
Signed by the originator in Belize City
Witnessed:
Name:
Date:
Witnessed and signed by Justice of Peace
Name other details will be filled in at the time of swearing and signed versions will be scanned and available to be sent by email.
Legal Rider
In my view, posts under an alias on Ihub by myself and others are protected by the judgement in case No.2:11-cv-01314-CJB-ALC Sec.J Div.5 / Treaty Energy Corporation vs. John Does.
The real identities of Ihub members are protected – in my view - by unique aliases and Ihub terms of service.
‘Ihub’ refers to Treaty Energy Corporation board at ‘http://ih.advfn.com/’
‘iHangout’ refers to Treaty Energy Corporation board at ‘ttp://investorshangout.com’
Attached Email Transcripts ( I have removed my real name and the email details and the email details of other Treaty shareholders in this correspondence to preserve the confidentiality of Ihub aliases).
-------------------------------------------------------------------------------------------------
Email 1
Dec 12 at 7:33 PM
To: investors@treatyenergy.com
Cc:
Treaty Website – Belize Update Required
Sean,
Thanks for the updates to the website done to reflect Treaty's revised holdings and plans in Texas.
I have received updates from Princess Petroleum and Geology and Petroleum Department (GPD) of the Government of Belize today indicating that: Treaty no longer operates in Belize; Max Mohamed (former Treaty Belize CEO) no longer works for Treaty; Wells San Juan 1,2 and 3 were dry holes, and Princess Petroleum who are now responsible for them have submitted Plugging & Abandonment plans for all three wells to Belize GPD.
I would be grateful if you could therefore update Treaty website information to reflect this and please remove my photograph of San Juan 3 well site from your website, as its use to illustrate Treaty operations in Belize is no longer appropriate.
I am surprised at how inconsistent your last newsletter was with the information that has been forthcoming today - you surely knew all this already.
Cheers
Retired Oilman and Scuba Diving Instructor
Belize City, Belize CA
-------------------------------------------------------------------------------------------------
Email 2
Sean Douglass
Dec 13 at 9:52 AM
To:
Cc:
Treaty Website – Belize Update Required
,
The information that you have posted is mostly incorrect and based on conversations with the relevant parties (Max, Keon, Hamdi and Mr. Mathayysse) and believe that in the short (2/7 min) conversations you had, you have misinterpreted the facts and jumped quickly to conclusions on the subject and have caused irreparable harm to our Company.
At this time, we formally ask that you please cease and desist on the matter.
Keon has informed us that he did not give you permission to publicly post his information on InvestorsHub or his statements on the matter. We have spoken to both Keon and Princess in Belize and have asked for a contract extension on the contract until the end of January. As of 9AM this morning, this contract is tentatively approved and will likely be approved today per their attorney.
As stated in our last newsletter, we are evaluating our international operations. This position is still factually still true at this time and we will be using this time to evaluate our international operations.
Mr. Mohammed is assisting us in our international operations at this time and to state that he is not at Treaty Energy Corporation is incorrect. He is, however, back at home with his family in Texas as we evaluate our international operations. It will be up to Mr. Mohammed to continue his employment at Treaty Energy Corporation or work for another Company. At this time, we find that it is inappropriate for you to state information on behalf of Mr. Mohammed without his consent. I just spoke with Max on the issue, and he agrees with this sentiment and approved the above statement verbatim.
The one part of your post that is correct is that Treaty and Princess Petroleum have submitted a voluntary P&A to plug San Juan 1-3. But another fact that you have incorrect is that Princess will be paying for it. Per our operating contract, Treaty Energy Corporation will be plugging the wells to international standards and bear it at our own cost. Princess did not create this plan, but they submitted it on behalf of Treaty as per our working agreement (I just spoke with Max about this and he said he drafted the document). This is part of our larger evaluation of our international operations.
We firmly believe there is still oil in Southern Belize and we are looking at the prospect of another drilling option should it become available with discussions with the Belize Government and Princess Petroleum, but again this is part of the larger operational evaluation that we are currently conducting and are only tentative plans. We have spent over $3mm in Belize and we very much believe in the Southern Belize Oil Prospect. We continue to inject money into the local Belize economy despite our operational issues and would like to improve our international operations as much as possible. There are many options available, including abandonment, but as a Company, we have not officially made that announcement or decision.
Lastly, under no circumstance can an international party that has no affiliation with any party involved in the matter, state how we present our investment materials or state that we are factually incorrect. We are still evaluating our international operations and until a formal announcement is made, then all relevant information will remain on our investment materials. This policy is similar to that of other corporations and is allowed under the SEC guidelines until an 8-K is filed or it is announced in a 10-Q/10-K.
I will be happy to remove your photos, but you requesting we remove information based on your information is similar to me telling you how to run your dive shop in Belize. In which case, we deny your request to adjust our marketing and investment materials based on our own internal operations and conversations on the matter.
Furthermore, we formally request that you cease communications with our Company. Our Company treated you with respect and welcomed you onto our sites to inspect them per your wishes. Unfortunately, based on your recent communications and actions, we respectfully ask that you no longer attempt to contact the Company or any of our shareholders without their consent.
Personally, I have always enjoyed speaking with you and have been willing to work with you on any of your concerns, however these actions have caused irreparable harm to the Company and we are forced to take this position.
Thanks,
Sean Douglass
Investor Relations
T: 504-754-6926
T: 504-301-4475
investors@treatyenergy.com
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the system manager. This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.
Emails from this person may contain forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, general economic or industry conditions, nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
More news from Belize. Thanks for the prompt.
I called Princess Petroleum and spoke to Keon Garbutt (at 2:28pm for 2 minutes) and Geology and Petroleum Department (GPD) and spoke to Andre Cho (at 2:30pm for 7 minutes).
Keon Garbutt, Princess Petroleum, +501-623-8442 advised verbatim:
1) Max has gone
2) Princess Petroleum are now responsible for plugging and abandoning the three wells drilled by Treaty here.
[These are not my words but Keon's words. He is happy for you to call him on the mobile number above.]
Operator and secretary passed me to Andre Cho, Director of Petroleum, Geology and Petroleum, +501-802-2651 who advised verbatim:
1) Max Mohamed, in his final act as Treaty Belize CEO, submitted an official letter to GPD notifying that he was leaving Treaty and working for Princess.
2) He has been advised verbally - but nothing official has been received yet but is expected within next month that Princess had got fed up and parted with Treaty. They have realised Treaty were not a good company to do business with.
3) Princess are taking responsibility to P&A the wells. They have submitted a P&A program and he is in the process of responding to Princess on it.
4) San Juan 1,2 and 3 should be labelled on GPD maps as dry holes (He had the maps open on his computer while I was on the phone as I explained the confusion caused by dry holes and N/A having the same symbol. He checked but couldn't find my earlier email on this subject and asked me to resend it to him. He will then respond to me by email on this issue).
[These are not my words but my transcription of Andre's words (my words of explanation to you are in brackets above). I didn't discuss whether he was happy for people from the USA to call him or not.]
You can call their contact numbers above as I did, if you want to verify this information.
Cheers
Belize Oilwatch
Just facts from Belize.
Not true - every I stated is fact not hearsay.
My question to GPD was verbal, my quoted response was in writing.
I cannot post the original information I have on this but I am willing to provide my facts to irishpi (who's email address I have from previous correspondence) to validate it on your behalf.
Cheers
Belize Oilwatch
Update from a wet and miserable Belize.
I have been trying to contact Max Mohamed for days without success. When I asked Princess they advised he was in the USA and they didn't know when he would return.
I just called Geology and Petroleum Department of the Government of Belize in Belmopan to inquire whether Max Mohamed was working for Treaty.
Andre Cho the Director of Petroleum was not in the office so I asked another member of GPD staff about Max Mohamed and they advised that "Treaty is no longer operating, so nobody works for Treaty."
Sorry for this disturbing news, which seems to indicate that Treaty's comments in their recent newsletter was less than truthful.
I am following up with GPD to find out who they consider is responsible for SJ3.
Cheers
Belize Oilwatch
Just facts from Belize.
If there, the US Marshalls may pick up someone else!
Pure speculation on my part.
Cheers
Belize Oilwatch
Geo you're right.
In Belize Treaty were drilling SJ#3 in an area with no proven oil reserves.
In Belize New World Oil were drilling RB#1 in an area where oil has been seen, near to an area with proven oil reserves.
In Texas Treaty have and hopefully soon will be drilling in an area with proven oil reserves.
Cheers
Belize Oilwatch
Just facts from Belize
Bad weather here today a lot of rain and flooding again.
Mitchell 3 and 4 - How Much Cash?
It will be interesting to see what Treaty got for Mitchell 3&4.
As a Petroleum Economist, I know that the price that gets paid in a transaction like this depends on a lot of things including: Treaty NRI% before the sale; Treaty's ORRI and CPP; Estimated oil production profile and reserves; Processing and storage arrangements; Anticipated operating and transportation costs; Each company's financing costs and their individual cost of capital (how much they discount the future value of money); Existing liabilities between the companies doing the deal; Oil quality and sales arrangements, and Oil price outlook.
Each company's view of the upsides and downsides of the above parameters for each well will also be factored into the amount paid.
Treaty will have done a good deal economically if the price they got paid is more than the expected future value of these wells (and thereby add value to the company).
Treaty will have done a good financial deal if they have received more than the carrying value if the wells in their accounts (and thereby make a profit on the sale).
Cheers
Belize Oilwatch
All above my opinion based on experience in the international oil industry.