smith, I guess you didn't read this update.
2. -- Letter/Report on JOSEPH SCHWALLIE WELL #1 - Pickett County, TN
ROME OIL DEVELOPMENT CORPORATION
1620 Clintonville Road
Winchester, KY 40391
September 6, 2010
Mr. Andrew Reid
Treaty Energy Corporation
201 St. Charles Ave, Suite 2534
New Orleans, LA 70170
RE: JOSEPH SCHWALLIE WELL #1 - PICKETT COUNTY, TN
Dear Andrew,
We recently re-opened the Joseph Schwallie well #1. We are pumping it intermittently with a pumping unit equipped with an 8 HP gasoline motor. To date we have been pumping water with small crude oil shows. Originally, this well was drilled too deep into a water zone. Now the well is plugged back to 1850 feet which is just below the Wells Creek formation that shows a high porosity zone at 1800-1805 feet. I believe that water invaded this zone from the lower zone before it was plugged back. The pumping that we have done has decreased the water volume and increased the oil shows to date.
The well was never acidized, It is running level with the Robin Moody #1 in the subsurface on the Wells Creek formation and should eventually produce crude oil if acidized. The Robin Moody #1 is currently producing Wells Creek oil.
Of greater significance in regard to additional oil production from this well is a porosity zone in the Murfreesboro formation at 1600-1625 feet. When acidized this zone frequently produced large volumes of oil, i.e. 25-100 barrels of oil per day.
I plan to remove the tuning and rods from the well and run a video log in the well to pinpoint all oil and gas zones. After viewing the video we will decide which zone ma respond favorably to acidizing.
Depending on which zone we acidize, the oil production rates could range from 5-50 barrels of oil per day. At $65-$70 per barrel this could be a very good well.
Sincerely,
/s/ John H. Barksdale
John H. Barksdale
President
AI
