IMPORTANT DD FOR INVESTORS
Treaty Energy Corporation
OTC BB: TECO DATE: Mar 2, 2010
EDGAR STATUS EDGAR Reporting
CHAIRMAN / CEO Randall Newton HEADQUARTERS Houston, TX
MAIN PHONE 713-425-5377 STATE OF INCORP. NV
LAST TRADE $ 0.0169 TRADING VOLUME 2,465,543
52-WEEK HIGH $ 0.075 AVERAGE VOLUME 1,202,794 (50 day)
52-WEEK LOW $ 0.002 AVERAGE VOLUME 1,944,737 (10 day)
SHARES AUTHORIZED
COMMON / PREFERRED 500,000,000 / 50,000,000 OUTSTANDING
(As of 2/25/10) 496,605,132 / 77,000
# OF SHAREHOLDERS 5,800 CURRENT MARKET CAP $ 8.34 million
INVESTMENT CONSIDERATIONS
1. Treaty Energy’s Kansas-based properties include 57 Oil & Gas leases covering 7,788 acres, with 481 active producing wells. Oil production from these fields is considered “sweet” and thus brings premium prices in the market.
2. Based on the recently “Reserve Report” the summary of all proved reserves projected to produce cumulative future cash flow of $43.1 Million through 2014, based on a starting point for the Report of 110 barrels per day, with KS leases producing over 1,000 barrels per day by December 2011.
3. Present value of the 57 Kansas leases, at the 110 barrels per day level, have a “Present Worth Profile” at a 10% discount rate of about $23 million to Treaty Energy.
4. Treaty Energy’s Tennessee lease includes 4 wells at present, with estimated production of 40 barrels per day, of which the Company has a 70% working interest. The TN leases have potential for drilling more than 200 additional wells.
5. While there are 481 active producing wells on the Kansas leases, and 4 wells on the Tennessee lease, the planned drilling program is projected to add new wells on a scheduled basis, to exceed 1,150 active wells by December of 2014.
6. It is Treaty Energy’s strategic plan to acquire and develop many additional oil & gas properties and to become a significant player in the industry over the next five years, and beyond. The Company’s management team is up to the challenge to grow!
7. INVESTMENT HIGHLIGHTS
A. Long-lived stable growth of proven production Oil & Gas leases.
B. Low-risk, lower-cost drilling opportunities via focusing on shallow projects.
C. High percentage of proven undeveloped reserves to harvest for profit.
D. Kansas and Tennessee Assets contain over a 1,000 drilling opportunities and ample undeveloped acreage, which will allow Treaty to offset portfolio decline rates, increase production levels, and expand the asset base.
