Treaty Energy Corp. (fka TECO)

[Belize Oilwatch]

Bull - Much appreciate you keeping an eye on Treaty Texas Operations.

I am keeping an eye on Belize in a similar manner. I will be visiting the wellsite here too late next week and will report on the progress I see.

Just to add some facts on some of the things that have been said about Belize that have been posted on this Message Board:

(1) The Superbond is a huge debt burden for a small country like this. It was taken out by the previous PUP Government of PM Said Musa. Now PM Barrow of the UDP has to try to renegotiate it to allow more money to be channelled towards development instead of debt service.

(2) Onshore oil in Belize is already greatly helping the Belize economy, oil is the country's second largest industry and BNE is the country's largest taxpayer (their production is 4600 bpd). More onshore oil, like Treaty could find in the Princess or Paradise concessions would be a great help to this country.

(3) The GoB do not yet believe that Treaty have found oil in Belize, as Treaty have not been able to the things that oil companies normally do to demonstrate an oil discovery (many wells were drilled in Belize in the 1955-1997 period that had similar oil stows to Treaty's well and which were not oil discoveries).

(4) Much of the Paradise concession (just under 1.4 million acres onshore) is volcanic intrusion and not of any interest for oil exploration but the edges of the concession contain rock types that could hold oil.

(5) Treaty have a non-exclusive option over the offshore part of the Princess Concession (1.8 million). The average water depth in this offshore part of the concession is between 4000 and 5000 feet , similar to the deepwater horizon. [In addition to these facts - it is my opinion that neither Princess nor Treaty have the technical nor financial capability to drill in the offshore part of this concession]