TECO - .0095 x .01 - Having a good day.. FWIW
Level II all over the place..
Treaty Energy Corporation Announces $9 Million Funding Commitment to Acquire Assets of Town Oil Company Marketwire "Press Releases"
HOUSTON, TX -- (MARKET WIRE) -- 12/20/10 -- Treaty Energy Corporation (OTCBB: TECO) today announced it has received a lender commitment to provide $9 million in funding for the purchase of the Kansas -based Town Oil Company, Inc. leases, with the closing to occur within 60 days. Treaty Energy and Town Oil have agreed to extend the term of the purchase agreement to February 21, 2011 .
Under the lenders commitment the $9 million in funding will include $6 million to fund the purchase of the leases and all assets on these leases, and $3 million to fund the closing costs, workover and the planned new drilling program on the Town Oil Company leases.
As indicated by the Company in an earlier news release, these Kansas leases comprise 7,788 acres over a 50 square mile area, and currently include 830 "stripper wells." Of the 830 wells, 481 are active producers, 180 are shut-in producers waiting for rework, and 169 are injector wells. Current oil production is approximately 165 BBLS per day. As Treaty Energy's rework program progresses and new production and injector wells are drilled and brought online, the Company estimates that oil production will ultimately exceed 1,500 BBLS per day.
According to the Independent Petroleum Association of America (IPAA), stripper wells comprise about 84 percent of domestic oil wells and produce over 20 percent of all domestic oil. Such stripper wells in Kansas average about 900 feet in depth, and thus are quite economical to drill when compared to much deeper wells in other parts of the country.
Treaty's CEO Andrew Reid commented, "We are pleased that the funding of the Kansas project is coming together and will allow Treaty to close this acquisition in early 2011. The acquisition and development of the Town Oil Company leases will position Treaty to generate a level of revenues and profits that are expected to complement our efforts to drill and produce oil from our other major project in the Central American country of Belize , where we are expecting to implement our drilling program in the first quarter of 2011."
About Treaty Energy Corporation Treaty is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. For more information go to: www.treatyenergy.com
Forward-Looking Statements: Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company's filings with the Securities and Exchange Commission , including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
Contact: Osprey Partners Tel: 732-292-0982 Fax: 732-528-9065 investors@treatyenergy.com
Source: Treaty Energy Corporation
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