Treaty Energy Corp. (fka TECO)

[bullmarket2222]

At the point I made the statement I believed it to be true on being cash flow positive.

Remember, I was there when we hit the well. Amazing to say the least. It's such an exciting event. Now, what happened? Well first of all we had to run a line to the storage tanks. That took some time. Then there was a 30 day delay due to connecting to the gas line. Production began back and pressure dropped to a level where it was safe to drill the lateral. That's where we are now and we are well into it. I wouldn't be surprised if we would soon complete that project.

Has worked stopped, no. Has there been delays, yes.

Will we complete the job. A resounding yes.

Excerpt from the PR's...

Wayne Knappick, the project manager overseeing this well, has informed Treaty that this well has an unusually high pressure for a well in this zone. The well is currently producing 147 barrels of oil and 762 MCF of natural gas per day prior to the planned extension of the lateral which is expected to greatly improve the production level of this well.

Treaty is in the process of performing a "48 Hour Certification Report" on this Madeley F1H Well. Go to this link (http://www.treatyenergy.com/files/madeleyf1.pdf) to observe the first 24 Hours of the Certification Test Report posted to Treaty's website. You will see that for the 24 Hour Test of the well produced 147 barrels of oil and 762 MCF of gas.

Treaty will start selling the oil from this well today weather permitting. There are currently 5-6 loads to be picked up of Texas Sweet Crude and of course this is growing by approximately one load per day at the current production level.

Because of the high well pressure and current production rate of the well, Mr. Knappick will produce the well as is until the pressure is reduced to a level that the well can be re-entered safely and the lateral extended.

.......................................................

The results of the 2nd 24-Hour Certification Test as submitted to the Texas RRC indicate that the Madeley F 1H well came in at 192 BOPD of sweet Texas crude and 822 MCF per day of natural gas. The natural gas, now having been "Certified" is in process of being connected to a conveniently located Pipeline and the gas will be sold into the market at a price of roughly $2.80 per MCF.

Treaty expects its revenue from the sale of the gas, at 822 MCF level of production, will be about $1,725 per day, or $51,750 per month, net after royalties.

Treaty is expecting its revenue from the sale of oil from this well, at 192 BOPD level of production, will be about $14,616 per day, or $438,000 per month, net after royalties.

The Madeley F 1H lateral, which is now drilled only 16 ft, gets drilled out to 1,000 ft or more. Oil and gas production from this well will likely rise significantly.