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Sometimes it is a good thing to read the PR's that a company puts out. Treaty has already PR'd that they have investors that have ponied up funds for drilling in both west Texas and east Texas. As for the horizontal drilling in east Texas on the Madeley well, that cost was burdened in the acquisition. Keep reading those PRs and 8K's.
investtoski, while I might agree with your high of .60, I think you might be surprised at your low of .05 being eclipsed pretty good. Remember that Treaty only needs about 125BOPD to hit the magic of cashflow positive for normal operations. Obviously that doesn't include extra well drilling, but it's the same for any startup company in that arena. It is not only hoped for but anticipated that west Texas will have at least three wells drilled by yearend and reworks on several others that will allow Treaty to produce about 100BOPD. And the Madaley is being horizontaly drilled out about 800' from center and Treaty expects that production to probably exceed 200BOPD. If Belize's first two wells come in with perhaps 100BOPD total, then the company would have something north of 400BOPD and that would make them a positive cashflow company even with royalties, taxes and any outside expenses. When you check the timelines for the average BB company to reach cashflow positive, I should think that Treaty would begins to move up the ranks of viable companies when they become cashflow positive, and that should happen pretty soon. Keep the faith.
Another nice UP close. Get ready for some real action guys.
Wrong Geo. OReily is correct. Just accept it.
Good job Oriley. As you posted, some posters need to just call the company and they can get some answers. Unfortunately some may be posting erroneous information. It would seem that real investors with an interest in Treaty being successful would make the time to call the company when they have a question.
Big R, as I've posted, first Treaty has to perf and acidize the wells. Hopefully they will get that done by the end of this week or the next week. Then you and the rest of the world will know what the production is. Hopefully total production from both wells will exceed 100 BOPD. At this point the company thinks each new well drilled will only cost about $300K or even a good bit less, including perfing and acidizing. With that kind of capital investment, the returns could be sufficient for the company to pay for the well (at a well average then of 50 BOPD)in two months even after taxes. Remember that the costs of the well come out first before any splits with Princess. So with a two month payout, the remaining life of the well could see Treaty making a nice profit of about 35% after all their taxes and their portion of the royalties. That's pretty darn good. And just on the first field, they could be looking at drilling another 80 wells. They have two more surveyed fields with probable oil, and they have only surveyed about 20,000 acres of the first 200,000 onshore acres of the Princess lease. The offshore area could prove to have huge potential and perhaps that's where the Malaysian group might come in to play. Who knows on that part?
Where is the Mississippi sand in relation to the general location of these wells? And from what I've read, if that sand runs through these leases, it hasn't been drilled to as the current wells are all shallow wells. So with the opportunity to drill to 6500' will the company have some new opportunity to drill deeper? Heck, someone mentioned to me that he knew of several Mississippi wells that were each doing well over 2500 bbls per day in Louisiana. Just wondering?
allbetson, I was at the company for two days last week. The GOB even modified the last PR regarding Treaty from what was originally proposed by the company. Any kind of activity like that by a government is what I call "restricted."
Allbetson, if that's not the case, then why does the GOB have to approve any PR that Treaty puts out? Even Treaty has mentioned this action in previous PR's.
Russian, it works the same way the home mortgage business is working. If you can't pay then the government will assist with refinancing. Same thing. Surely you know that though and you were just teasing, right?
Not exactly DTL. The reason the GOB is not allowing Treaty to PR much regarding the potential production is that they are still in negotiations with Washington regarding their $525M loan. They left Tuesday without an agreement. Understandably, the GOB doesn't want Treaty to announce anything so concrete in potential production value as that would also reveal that the government will then be collecting additional taxes from the new production. The real question is how long does this go on? It's really unfortunate for Treaty as they cannot publicly inform their investor base of what real potential there is in Belize. Hopefully the GOB will resolve their loan situation quickly and then that would open the doors for Treaty to accelerate production and additional drilling in Belize.
LSU, did you read the PR that Treaty posted that mentioned they had wirelined the two wells in Belize recently, and the tests did in fact show oil and even the GOB acknowledged that and gave Treaty permission to complete the wells for production? If you haven't read that, then perhaps you should look it up. It's not heresay when management posts something in a PR. As for predicitions of production, they are just that. Predictions, period. And while you may wonder why they make such predictions, have you considered that the numbers came from folks in the field? Predictions are always subject to be inaccurate. In fact, sometimes predictions are sometimes more than projected, and even sometimes less than projected. Business is not like reading a book, ie., black and white. There are hourly variables in business, every day. And business is kinda like the Tigers football games. You win some, you lose some. The idea is to win more than you lose. Treaty has moved up pretty dramatically from two years ago, and even one year ago. More equipment, more leases, and more opportunity for investors. More production is forthcoming. In fact, you might see the third quarter reflect a nice increase in revenue over the second quarter revenue. That area will continue to move up as well. Check a new show on cable that is called, Love it or List it, which deals with either keeping a house after it has been remodeled, or listing it for sale and buying something else. Investors have the same opportunity with Treaty. Either love it or list it.
Treaty found oil in Belize. Even the GOB confirmed the last wireline tests as showing oil. Production coming next. Possibly next week or the week after, but for sure this month.
Interesting how some on this board cannot read what is being posted. Treaty closed on the three leases that were presented to them that could get clear title and all representations made cleared due diligence. Obviously, there must have been a problem with the Chumley deal as it didn't close. Sometimes due diligence proves to be worthy for the company, and subsequently, even for their investors.
NOT! If you are going to post a direct statement like that, you should be prepared to back it up with info from the company that validates it, period. Perhaps you should ask yourself the question, why Treaty would use money or even stock to acquire some portion of an international company when they need all of the capital that they can muster for their own operations?
Big R, possibly Chumley was like Kansas. Kansas wasn't able to clear the titles to the leases. Chumley might not have been able to clear the leases as well. Or perhaps when Due Diligence was done through Treaty's attorneys something might have come up. No matter what happened on Chumley, they still closed three of the leases and therefore should have at least three of the well pads to drill that Treaty has mentioned. That would equate to about 12 wells, as a minimum in east Texas.
Why are you deducting 80%? That's your first mistake in your calculations. Unfortunately it subsequently throws all of your other numbers off as well. We'll see who's closer pretty soon though.
So LSU, you're saying "he gave Placencia Properties $10Million of TECO stock. That would have amounted to one-third of the company. Why would you post something like that when it is completely false?
LSU, I'm going to say that I would extremely estatic if Treaty got to cashflow positive by the end of the year. On the other hand, if they do not, I would be extremely dissappointed. And I'm like you on one point, Treaty needs to make it happen. To put it into numbers, we need to see 3d quarter revenue of somewhere around $120,000 to $150,000, and for sure we need to see fourth quarter revenue break over $1,200,000. Now, that would be AWESOME!
LSU, the revenue for the second quarter was somewhere around $15K as I remember. Too lazy to look it up. BUT, I think with what activity that Treaty has had for the last half of the third quarter, we just might see revenues jump 800% to even 1000% for the third quarter. That would be a heckuva increase, but the real increase should come in the fourth quarter. If Treaty really gets it going on the production, which is now highly probable, then they could see another 800% to 1000% increase in fourth quarter revenue over the third quarter. Would you consider that Treaty management is doing a good job if you were to see 1000% quarter over quarter revenue reports for the third quarter and then the 10K for the fourth quarter? And keep in mind, if they make that happen in the fourth quarter, they become cashflow positive going into the new year 2013. Would you like that as well? That could essentially move Treaty up into the top 20% of all BB companies.
govprs, it means that when he receives a new certificate without restrictions stamped on it, he can deposit those shares to his brokerage account which will then provide him with some liquidity. As for announcements, think about it one way or the other. When is the last time you have seen trading activity reach much over 2,000,000 shares for TECO? And then on that particular day, one person might be able to trade perhaps about 10% of the total shares, or if it was an incredible volume day, perhaps 15% of the total shares traded for the day. So the probability of him registering just to sell shares is not probable. The real probability is that he wants to put those shares into his brokerage account. After all, why would he want to sell today when as an insider he really knows what Treaty is preparing for over the next few months? And that is what is going to make those shares worth eight to maybe even twelve times as much as they are today.
As posted, they are claims. Since you prefer to claim that Treaty doesn't have oil in Belize, these claims may be worthless as well.
Outta the park panther2. Very well stated. No company would spend tens of thousands of dollars chasing something in Belize when they have a really nice opportunity at home, UNLESS as you posted, Treaty and the GOB know that Treaty has indeed discovered oil in Belize. And that posters, will be confirmed with production within two or three weeks. Get ready. It's coming.
Some continually beat down Treaty. I bet they know that by doing so they can get more shares for the same amount of money. That is a pretty clever investing scheme when you think about it. Therefore it is surely clear that Treaty does have water in Belize. In fact, miles of beautiful shoreline in their leases with Princess. And under normal business circumstances that might be a plus. But in Treaty's instance, it's their hidden gem that will prove to be more economically beneficial to the company. And that's oil. It won't be long coming now. Perhaps a couple more weeks til production. Watch for it.
GEO, Treaty has since that old news completed an additional well, and have wirelined both wells with the results of both wells showing multiple zones of hydrocarbons. Is there anything about that statement that you do not understand?
"right now," surely you are kidding. This MM manipulation has been going on for essentially a year or so. Go get'm dloggold. I'd say most posters would support your effort on that move. And please hurry.
DTL, if we could even get 400 bbls per day it would be great for Treaty. They would become cashflow positive. Heckuva deal! But I like your thought of 4000 bbls. That would push this stock north of $1 probably.
arstegall, they are being very cautious, and for a reason. They knew from the past experience from the well that it could jump in pressure and in fact it did and caused major problems. Not to belabor what those problems were, but the fact remains that with the pressure down they made the determination that the could reenter and begin the horizontal. In the short term that could bode well for production. I heard something about going out 600'to 800'. With the production they had previously, they could improve the well production very nicely. Keeping in mind that this would be only one zone, even if they could hit 200+ barrels per day, it would be a nice well again. Of course, it could also be a lot more than that. We've just entered the second quarter of a four quarter game. Just about time for Treaty to score.
Nope, the leases that Treaty acquired were finalized at a closing. Therefore Treaty is now the owner of the three leases that they announced in their PR. AS for drilling horizontal, the pressure is now down and they should begin drilling horizontal sometime next week if all goes well. The well can continue to flow some oil during the drilling process from what I've been told by someone who's been in the field. From what I can gather, this might cause the revenue for Treaty to be down a little from what I mentioned in a post a few days ago, which was somewhere north of $300K. With the pressure down now so they can begin horizontal drilling, they may reach only somewhere between $200K and perhaps $240K. But it opens the door for more production in the fourth quarter. Shares are cheap today.
So, who cares? No matter what they are producing now, it is what their potential production in the fourth quarter this year and the first and second quarter are next year that really matters. Belize should be on line in the fourth quarter with its first two wells, and a third well underway pretty soon. A fourth is probable by yearend. West Texas is finishing up its Macomas well and it should come on line within a couple of weeks or so. And they are reworking some of the old wells out there and a second new well is targeted very soon. East Texas has been closed and a redrill horizontally on their first well there could begin within the next couple of weeks. And they have a chance to drill the first pad of wells in the fourth quarter. Opportunity abounds for Treaty.
"Why hold a stock that you would not buy at this pps?" posted by Allbetson. That is a great question. It really points out who is a real investor in Treaty and who is probably not. At this point in the Treaty operations, you either believe that they are developing into a nice internatinal oil company, or not. For any who don't, why do you even post here? Treaty has already indicated that their second well in Belize tested positive on their wireline test, as did the first well. So now they have two potential wells in Belize. And there are multiple zones. And even more, the wells are probably somewhere between 950-1000' apart. That means an oil zone with the potential to be tens of feet thick and at least that long. That's a lot of oil. Positive news for Treaty longs, you bet. Do I have my shares, you bet. Am I buying more at these prices, you bet. As our play was called in the huddle, R1050, which meant the wide out goes long baby. The ball is going his way. You bet. We're fixin to score on this one. You bet.
THE REAL SKINNY! First, I have posted that Treaty will probably only have about one month, possibly, for the full 3d quarter. Why? Because they had a few obstacles, including a hurricane to contend with for some of the time. In addition, they had to wait for XTO, who has the pipeline for the gas to give them final approval for their gas transmission. It took awhile. Then the oil has to be collected and trucked, not put into a pipeline and transferred. Both take approval and certifications and therefore time. So expect hopefully somewhere north of maybe $300,000 for the quarter. Fourth quarter will be substantially more.
Second, the Belize wells will not be producing until probably the first of October since they still need to be perfed and acidized. That takes some time and then final hookups and production can ensue. It will happen. Here's a real highnote for everyone. No one has mentioned anything about the potential field that Treaty has located in Belize since the first PR last year. Well folks, last year, when they chose to drill San Juan #2, it was in one specific location, and guess what, the second well being drilled is potentially about 950' to 1000' away from the first well drilled. Yet, no one has caught on that the wireline tests are similar to the first for the second, meaning that there is an oil strata dozens of feet thick running about 1000' at least, and they had more than one zone. For those oil guys, does this mean anything? Sure seems to me as a novice that it could prove up what Treaty mentioned last year in that their engineers thought that they had a potential field of 6,000,000 barrels of oil. That is really teriffic news. Third, west Texas is drilling and completing and something should come in on that area in a couple of weeks. In addition, the company announced they had taken possession of the Wilson rig so that give them a rig to begin drilling the other well program out in west Texas. And fourth, the east Texas lease deal closed for three leases and now Treaty can move forward with a drilling program on those leases. Remember that Treaty management mentioned that they might expect to produce about 1500 bbls per day from each of the pads they will drill from. All in all, good news.
LAOilMan, your post nails it. Treaty wouldn't have spent the money on the second well if they hadn't found oil in the first. While some don't want to accept that, the wireline tests on the first well in Belize confirmed it a few weeks ago, and now the wireline tests confirm the second well in Belize having oil as well. As hard as capital is to come by for any company, much less a small one like Treaty, don't people understand they could much easier spend the capital drilling wells in east Texas at a cheaper price than drilling in Belize, unless of course, they know they have oil in Belize. And the heck of it is that they have only surveyed about 10% of their onshore concession in their first lease. Don't forget there is another lease that needs to be surveyed that has another 1,400,000 acres of opportunity. Treaty is just beginning. This is kinda like a football game that has just started the second quarter and Treaty is on their own 20 yard line. Let's see how this plays out. And no, a quarter of three months is not a quarter of time in this game. A quarter is about 18 months long. Over the next 18 months, a real international oil company will be made. And that will then only be half time. The fun will just be beginning for the real investors who are long. We may have scored big already by then. Just watch.
Looks to me like Treaty needs to bring a rig back to headquarters and use it to drill through all the BS some spout on this board. Here's a real question for folks. If you own Treaty stock, do you want it to be successful? If you own Treaty stock and want it to be successful, do you post positive comments? If you don't own Treaty stock, why are you posting on the TECO message board? None of us posting here should be trying to run the company. But some posts reflect like the person knows more than the Treaty folks doing the job. Really, if you are that good, why not run for a director position? I'm sure the company could use legitimate good help. Go for it. In the meantime, more good news from Treaty. Even sooner than I expected. Now they have confirmed wireline testing for two wells in Belize that show oil zones. My guess is that it may take a couple weeks for them to get those two perfed and acidized and then production can begin. And remember, the wireline tests indicated multiple zones. This with the east Texas closing of three leases there will really get this company producing some good oil volumes soon.
NO, NO Oiljob. Not til Hell freezes over. I'm too old to wait that long. But I'm like allbets, news could be coming this week, hopefully, but if not, next week for sure. With three regions of interest, east Texas, west Texas and Belize, something is fix'n to break for Treaty. My guess is that 3Q will only reflect a few days of production and revenue, but 4K will begin to increase dramatically. I had previously posted that the company had fallen behind about seven months, only to repost that they had caught up a couple of months to be only five months behind. But now, they're down another month to be behind schedule about six months. That still means that they will have a chance to hit their projected 1000bbls per day this year. That's a huge improvement and movement forward, especially now that the east Texas leases have closed and Treaty can move forward with their drilling plans there. With the pps where it is today, it represents a helluva buying opportunity for any investor who wants to be looking at a triple or quadruple on their investment by yearend. And perhaps a good deal more.
Wrong Russian, again. The report by the state does not necessarily report all of the directors of a company that the company may send in. I know. I've been a non reported director before. Have you? Get your facts straight before you post. If you still have a question, call the company. Surely you can do that, can't you? That way you can confirm the facts.
Officer and Director Report is the report to the state of Nevada which, number one is an older report. Number two only has a place to list the officer or director listed. As anyone can see, it is an older form that probably should be changed to allow a company a lot more space so they could list all of it's senior officers and all of their directors. The real list of officers and directors is actually on OTCMarkets.com. Gotta hurry now so I can buy some more cheap shares.
Nope Russian. You don't have to list all officers on this registration. Consider this. They just added a new director and he's not listed either. They would have to put out an 8K if there was a change. Oops. They did. They put out one that stated he was a director. Did you miss that one?
To DTL and Stifler, the 6,000,000 barrels that Treaty first mentioned for the first potential reservoir in Belize is just that, the first one. From other reports from Treaty's geologists they believe there are two other reservoirs of which one is slightly larger than the first, and the third is a good deal larger than the first. So just possibly Treaty could be looking at somewhere around 20,000,000+ barrels of oil in Belize. And that is only from a small portion of the total 3,400,000 acres they have under contract.
Gee running, you sound confused. What do you need help with? If you have any questions about something you are unsure of regarding Treaty, call Mike Mulshine, the IR guy for the company.