Treaty Energy Corp. (fka TECO)

[Belize Oilwatch]

Three things are needed to make an oilfield.

Based on the presentation I give to college kids in Belize, these are:

(1) Oil source (the information I have on past wells in Belize show this is present over a lot of the country) [The seeps at Treaty wellsite are a good sign - oil is being generated - but needs to be trapped to make an oilfield]

(2) Trap and structure (impermeable cap rock and large enough structure underground - this is normally detected by Seismic - a lot of historic exploration wells in Belize had dead oil shows showing that the trap and structure were not present - these wells were abandonned) [IMO Without doing seismic and with no offset wells in the vicinity - Treaty have no clue whether a trap is present and what the size of the structure could be]

(3) Good rock quality (to hold the oil then let it flow out when you want to produce it - this is normally detected by drilling - I have heard that this was also a problem with a lot of the past wells in Belize as even those with live oil shows wouldn't flow and were abandonned) [Treaty well results should show this - they haven't yet - but when they expose the potential oil reservoir and log it they should be able to tell one way or the other]

Drilling exloration wells in a new oil area all the above must be considered risks and studies and technolgy must be used to try to minimise the risk before drilling.
In an established oil area like Texas on the other hand these risks shouldn't exist as there are plenty of offset wells - but there are other risks like oil depletion to contend with.