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New World Oil vs. Treaty PPS Difference Why?
I think it's a matter of the number of lower number of shares issued by New World Oil (249 million fact New World Oil end 2012 Financials) than Treaty (813 million fact Treaty end 2012 Financials)
and because:
- New World Oil are a company focused on international oil exploration (a high cost, high risk, high reward business) where the chance of wells being dry holes is understood and best exploration technology is applied to reduce the chance of them. IMO
- Treaty are a company focused on infill drilling in existing marginal oilfields (a low cost, low risk, low reward business which can't be extrapolated to international wildcat oil exploration) where dry holes are not expected and where little exploration technology is applied to reduce the probability of them. IMO
Cheers
Belize Oilwatch
The performance and safety standards in the oil industry shouldn't be driven by what your share price is.
Enough said on this matter.
Cheers
Belize Oilwatch
Sorry but as the facts worked for most but not for all, I had to post the above opinion instead.
$3.5 million drilling contract in a company with $7 million losses in last 6 months is significant.
It should be reported to the SEC in an 8-K or 10-Q.
Cheers
Belize Oilwatch
Is this Belizean comparison is more valid?:
New World Oil Rio Bravo #1 well drilled to 9010 ft in 48 days (spudded March 4th, completed April 21st, dead oil shows, not cased and tested, plugged and abandoned)
Princess Petroleum / Treaty Energy San Juan #3 well target depth 4000 ft still not reached after 271 days (spudded 14th March, still not completed, no oil shows reported, cased and tested water, suspended with stuck packer)
Cheers
Belize Oilwatch
Just facts, from Belize
I agree there are many differences, but both company's objective must have been to drill each well as quickly and cheaply as possible.
The 36 days in fact is world leading performance.
The 270 days I quote smacks of incompetence. IMO
Cheers
Belize Oilwatch
No wonder Treaty shareholders are getting frustrated.
The San Juan #3 well was officially spudded in at 3:30pm on March 14, 2013 and 270 days later the operational status is still classed by Treaty as drilling and target depth of 4000 feet has still not been reach.
Contrast this with the deepest oilwell in the world, drilled by Maersk Oil using a Transocean rig to 40,320 ft in 36 days.
Cheers
Belize Oilwatch
Just facts from Belize
Surprising news from Belize - received today
(in the course of following up here on the stuck packer).
Treaty Belize CEO, Max Mohamed (who was running Treaty Operation at SJ#3), has returned to the USA and no longer works for Treaty.
Cheers
Belize Oilwatch
Just facts, from Belize
Seems that Belize is firmly on the back burner for Treaty - while they focus on Texas - as they advised.
Treaty Belize CEO has left the country for the USA and no-one in Treaty Belize or Princess knows when he is going to return.
Hoping to get an update on the status of the well site next week - when family plan to visit Placencia.
Cheers
Belize Oilwatch
See update from Treaty IR copied below.
Copied from elsewhere...but didn't seem to make it here yet.
Just re-posting it here because its interesting - and because there is no reported Treaty activity in Belize at the moment.
Cheers
Belize Oilwatch
---------------------------------------------
Posted On: 12/03/2013 4:37:24 PM
Posted By: TECO-IR
Re: gts #22991
504-301-4475. Call it. It's my direct line. In the very top of our newsletter last week we told every shareholder that if you have ANY questions to please call or email us. This week will be a catch-up week which means communications will be scattered.
1. The rig is off the Stockton 3.
2. Stockton #2 is pumping.
3. Stockton #1 is continuing to be reworked, but will likely not be put into production until the #3 is completed, which will be happening over the next few days (we're waiting on some parts being sent to us).
4. What operator? C&C? We've been on the phone with the RRC for the last two days handling that matter before the end of the year is over. U.S. Fuels is still the operator of record on the Kubacak #3.
If you want information -- we give you the exact way to do it: investors@treatyenergy.com or 504-301-4475.
-------------------------------------------
This account is an official representative of Treaty Energy Corporation (TECO), a publicly traded stock listed on the OTC. Please feel free to contact Treaty Energy Corporation at anytime directly at investors@treatyenergy.com or via phone at 504-301-4475. Don't feel like talking? Check out our website at www.treatyenergy.com.
Posts made by this user 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.
Treaty Energy Corporation Business model states that their objective is "Near Zero dollars and time spent in rank exploration".
If this is the case, why are Treaty doing wildcat exploration - and taking so long about it - in Belize?
Cheers
Belize Oilwatch
Yes Treaty's 2Q 2013 facts are ugly:
- Just over 1 bopd oil production ($0 net receivable after royalty and production tax reductions)
- $500,000 less assets than at end 2012 (from oilfield support equipment?)
- $4,500,000 higher liabilities than at end 2012 (mainly due to a Derivative Liability that they record for the shares sold in excess of the authorized number of shares)
Rainy day in Belize today, and TECO doing nothing here that is interesting to watch. Hence this analysis.
Cheers
Belize Oilwatch
No repeat visit to San Juan 3 wellsite planned any time soon.
Last pics I have of San Juan 3 wellsite in Belize that I have were taken on June 27th 2013 after casing running, before cementing.
SJ3 wellsite looking North.
SJ3 wellsite looking East.
SJ 3 wellsite looking South.
SJ3 wellsite looking West (showing the cut off BOPs).
May not be as wide a view of the wellsite and surrounds as you were looking for, but its all I have.
Just facts. From Belize.
No official news on SJ3 in Belize yet.
The only oil company in the news in Belize is Maranco - link to transcript is below - including the following very interesting last sentence of the report:
"There are other companies currently exploring for oil, but none has announced an encouraging oil show."
The Maranco oil show, a no show?
Just facts. From Belize.
Oil or No Oil in San Juan #3? - I agree it is too early to tell but this week should give us more facts.
The rules concerning a commercial oil find are set out in the PSAs and well understood in practice in Belize. They are a little different to immediately putting wells on production in West Texas under the governance or the Texas Railroad Commission [TRRC].
If oil - which is economic to extract - is found in an exploration well in Belize then the Oil Company either has to make a declaration of the commercial discovery of an oilfield to the Government of Belize [GoB] (including credible information on the oilfield's extent and size) or the Oil Company advises the GoB that it has potentially made a commercial discovery and needs to conduct an appraisal program to find out the size of its find. In the latter case the Oil Company would probably drill further wells before the declaration of a commercial discovery - as has happened in the case of Maranco at South Canal Bank #1 well.
Once a commercial discovery is declared in Belize:
- the acreage which contains the field is converted to a development lease (25 years) vs. the exploration concession (8 years - which will be fully relinquished by October 2015).
- A development plan for the field has to be prepared submitted and approved by Geology and Petroleum Division of GoB
- An EIA for production from the field has to be prepared submitted and approved by the National Environmental Appraisal Committee and the Department of Environment of GoB.
[After production testing the well would stay shut-in while this process is gone through]
[After drilling a well the Oil Company has 180 days after drilling a well to conduct a production test and to make a declaration of commercial discovery - if this is not done it is deemed that the Oil Company has advised the GoB that the well is not of commercial interest. In Treaty's case this would apply to San Juan #1 and #2]
In prior postings, I showed facts that indicate: GoB has to approve all announcements regarding well results in Belize; In the event of oil discoveries the well results are normally announced by GoB, and In the event of dry holes the well results are normally announced by the Contractors.
Awaiting more facts on San Juan #3 results this week.
Just facts. From Belize.
Not true. Treaty have to swab and test San Juan #3 first.
Oil or no oil has not been proved yet.
Just facts. From Belize.
Treaty has not performed well so far. You have said it yourself.
10-K shows poor performance from the start to end 2012. IMO
I expect 10-Q for 1Q 2013 to show poor performance too (as Mitchell only came along in 2Q). IMO
And as for all the noise (and pounding) from both sides about Mitchell. The proof of performance will be in the 10-Q for 2Q 2013 which we can expect in August and the 3Q 10-Q in November. Until then all talk of Treaty's share of production volumes and the resultant financial impacts is total conjecture. IMO
Today there are no oil industry facts from Belize to share.
Lost circulation and cementing.
A technical explanation in answer to your and others questions on my post yesterday.
All Treaty's wells in Belize have been drilled in a Karst environment - which contains limestone with fractures, holes and caves in it.
While drilling San Juan #3 I understand that Treaty lost circulation (ie did not get the mud they were pumping down the hole back). One possible reason for this is that hit a fracture or hole in the Karst Limestone formation they were drilling through. Treaty reported in their 2013 Development Plan that they also lost circulation in San Juan #1 well too.
Now Treaty have run the casing and in order to cement it properly they have to make sure that they don't lose all the cement they pump down the hole into the same zone that the mud was lost into. So they isolate the lost circulation zone in some way before cementing. This will hopefully result in the cement flowing up the outside of the casing pipe and setting where they want it between the casing pipe and the rock formations that they drilled through higher up the hole.
I hope this gives you a better understanding of this now.
Friday's court ruling was reported in yesterday's mid-week Amandala Newspaper in Belize.
See link for full text.
GoB Wins 2nd Legal War Against Offshore Drilling
No media reports in Belize on anything to do with San Juan #3 so far this week. I plan to visit the well site on the way to Placencia Lobsterfest tomorrow.
Just facts. From Belize.
There is no new evidence on SJ #3 to suggest whether or not Treaty have found any oil.
Belize Channel 5 last conducted an aerial survey of the wellsite on May 17th 2013 to show that the well was still drilling despite the injunction of April 16th 2013.
There has been no further aerial survey of the wellsite since that time.
On May 17th Channel 5 and 7 both reported that Treaty were resuming drilling at that time.
Channel 5 Aerial Survey Report May 17th 2013
Channel 7 Reort May 17th 2013
Several weeks later Treaty drilling reached TD and they logged the well.
The aerial photos posted on this board recently, which show drilling equipment around the well not production testing equipment, I expect are also from that survey on May 17th 2013. More recent land-based visits to the wellsite since then show that the logging unit had been moved back from the well in preparation for running and cementing casing.
Announcements as to whether SJ #3 has or hasn't found oil have not yet been made by the Government of Belize, Treaty or other observers on the ground (or in the air) in Belize.
Just facts. From Belize.
No oil has yet been proven in Belize by Princess / Treaty exploration well San Juan #3. Oil may or may not be proved in the coming weeks [If anyone wants to declare otherwise please post your facts].
TV News reports of the court judgement on Friday are now online. See links below:
OCEANA Loses Ground But Saves Face In Court
A War Of Words Between Barrow and Matura-Shepherd
G.O.B. wins one against OCEANA in court
OCEANA VP vows that battle will go all the way to CCJ
There is very little on oil in this week's Sunday papers as these are published on Friday - before the court hearing and there is no other oil news this week.
Just facts. From Belize
Chief Justice Benjamin gave his judgement this morning on the application for a Stay against the injunction imposed on the Minister of Natural Resources and Environment of the Government of Belize on 16th April 2013 by Justice Legall.
I was in court and, although the acoustics were bad, I heard the Chief Justice state:
(1) The 6 offshore companies are not subject to the judgement of 16th April 2013 as they did not participate in that case.
(2) The PSAs of those companies, including Princess Petroleum and Providence Energy, were not quashed by Justice Legall. And the companies continued to operate.
(3) The Government's application for a Stay of the injunction was granted. The injunction will be stayed until the hearing on the Appeal against Justice Legall's judgement is heard, based on the Chief Justice's opinion that:
- The appeal has a reasonable chance of success.
- The injunction is hampering the statutory duties of the Ministry.
The Chief Justice stated that a written transcript of the judgement will be available on Monday.
Reporters for several TV stations were at the court today and recorded interviews after the case was concluded for this evening's news.
Just facts. From Belize.
"The San Juan #3 well has turned out no oil discovery".
Quote from Belize Times newspaper 16 June 2013 - scan of article attached.
The article also gives an update on BNE production decline, Maranco exploration progress and mentions US Capital who are setting up to drill further in the Toledo district.
Just facts. From Belize.
Belize Update.
Belize Coalition to Save Our Natural Heritage have just advised that they have received a notice from the court that the Chief Justice will now rule on Government’s application for a Stay of Injunction on Friday, June 21 at 9:00 a.m. (This was originally scheduled for Thursday 20th June).
I understand that Treaty plans to swab and test SJ3 next week.
Just facts. From Belize.
Big storm hitting Belize right now.
Its only a Tropical Depression but heavy rain, storm surge and high winds (30-35 mph) have been making life miserable for us overnight and for all of the day today.
The storm is hitting Belize close to Placencia in the south but its effects are being felt over most of the country. The eye of the storm is currently located 10 miles NE of Monkey River and will pass close to the San Juan 3 well site in the next 2-3 hours.
Tropical Depression 2 Hurricane Centre Advisory
Just facts. From Belize.
Shell and BP are not interested in Princess / Treaty acreage in Belize.
These are the facts:
Shell were one of the major oil companies who explored in Belize between 1956 and 1982. They left after running seismic and drilling wells as they didn't find anything that was attractive for them.
BP was never here and their current Exploration Strategy doesn't involve fields even 10 times larger that the biggest field currently on production in Belize (which was discovered in 2005).
Just facts. For Belize.
Thanks for pointing that out.Perhaps I should have worded it "Neither Treaty nor Government of Belize (GoB) have publically shared the results of the San Juan #3 well yet" but it was too late to edit the post.
While it is clear is that GoB have to bless anything that is said about oil exploration well results in Belize (IMO), the announcement of well results has not always been by GoB - see a list below of recent exploration well results in Belize:
Treaty San Juan #2 - Discovery announced by Company. Refuted by GoB. Confirmed as sub-commercial in US press.
Perenco Orange Walk #1 - Dry hole reported in press in Belize.
Treaty San Juan #1 - No press release by Company or GoB. Sub-commercial announcement in US press.
New World Oil Rio Bravo #1 - Dry hole announced in Press Release by Company.
Maranco South Canal Bank #1 - Oil find announced by GoB.
Just facts. From Belize.
This data would suggest that GoB want to announce successes and leave companies to announce failures.
Update on Belize Oil Discovery by Maranco.
In April it was reported that drilling company Maranco, operating for themselves for the first time in Belize, had discovered oil in the North West of Belize. Maranco finds “black gold” in Laguna Seca area
However radio and TV news updates on Tuesday June 11th indicated that the find was not as clear cut as first expected, and it has not been declared commercial at this stage. The CEO of the Ministry advised that appraisal drilling by Maranco is required to establish commerciality and if that is successful an EIA for development/oil production will be prepared. Maranco’s Oil Show; what does it hold for Belize?
This was confirmed by the Prime Minister Dean Barrow in a press conference on Wednesday June 12th. PM Discouraged About Once “Encouraging” Oil Show
I have posted this here to describe the Belizean process (and time period required) - if an exploration well is successful - for a potential oilfield to pass through appraisal, EIA, field development and then into production.
Treaty has not yet shared the results of their San Juan #3 exploration well yet.
Just facts. From Belize.
And appointment of Treaty Belize CEO.
For sure it will be an interesting week for Treaty Energy Corporation, in terms of corporate / legal / compliance matters.
SEC Submissions
Still 2 days to go until the latest filing by Treaty of a 10-K ever (the 10-K for 2011 was filed in 2012 on June 13th)
Belize Court Case
Government of Belize's application to Stay the Injunction handed down by Justice Legall on 16th April was heard in the Supreme Court by Chief Justice Benjamin in Belize City yesterday. I understand from those in court that a judgement will be delivered next week on Thursday (June 20th).
Bankrupcy
The judge will hear the case for involuntary bankruptcy against Treaty Energy Corporation in Louisiana court this week.
Just facts. Awaiting outcomes.
According to you "Treaty did not use the data to locate SJ3 either" but according to Treaty, here in Belize, SJ #3 was located on a high on that seismic line.
Not sure the date of the CC you mention, but the 2013 DEVELOPMENT PLAN submitted to GoB in January 2013 (see figure 4 on page 8) showed the old seismic lines in the San Juan area of interest.
San Juan #3 was spudded March 14th - well after that.
Just facts.
A few facts about oil exploration and Treaty wells in Belize.
Oil exploration is a risk business - this is a very different business to drilling up existing oil leases in the USA. The current success rate for wildcat exploration wells drilled after seismic, quoted by the President of the American Association of Petroleum Geologists (AAPG) is 1 in 10 - 90% of wells do not find commercial oil.
San Juan #1 and #2 were not located using seismic, but San Juan #3 well (located at about 16 Q 0337969 1831884 UTM according to my GPS) is located on Esso Seismic Line B76A-013.
Just facts.
Update from Belize.
Passed the San Juan 3 well site again yesterday.
Logging unit has been moved away from the well and casing pipe was being unloaded.
Casing was also run and cemented in SJ 1 and 2 which were later declared uncommercial - see link.
Treaty Energy aiming for third time lucky in Belize
Just facts.
Wireline or Log?
Logged June 2nd 2013.
Oil is meant to flow up wells - not money down them!
You seem to be forgetting that Justice Legall on 16th April 2013 also passed judgement that the Princess Petroleum Ltd Production Sharing Agreement and 5 other offshore PSAs were null and void.
So I cannot agree with you that "they do have a legitimate contract made by a government official through Princess".
That judgement is of course the subject of a separate appeal by the Government of Belize to be heard at a later date.
Belize News Updates on the Court Case requesting a stay of the injunction.
The case continues on Tuesday 11th June 2013, the judge has ruled dismissing the application by Oceana and others to introduce an expert witness, the Government of Belize have withdrawn the letters from Providence Energy and Princess Petroleum which would have required that witness - but there has been no ruling yet on the Government's application to stay the injunction.
Oil PSA Issues Trudge On
OCEANA and government attorneys battle offshore contracts in court
Exploratory activities at the root of injunctions in court
Just facts.
Court case is today - it was not yesterday.
Belize Well San Juan 3 is at TD and has been logged.
Treaty PR should be telling you this and more - if appropriate.
They should be getting daily drilling reports from the wellsite.
Sorry can't give you any more details.