Treaty Energy Corp. (fka TECO)

[Belize Oilwatch]

I am not aware of any direct agreement between Treaty and the Government of Belize (GoB).

The GoB has a concession agreement with Princess Petroleum Ltd (who are still the only concession holder) and Princess Petroleum Ltd have an Option Agreement with Treaty Energy Corporation.

My understanding is:
- There will be no oil production revenue from any well accruing to the concession holder until the find is declared commercial (from memory I think this is in the Belize Petroleum Act 2000 and the Princess Concession Agreement)
- To declare a find commercial in Belize, there must be appraisal (seismic and wells) and a development plan for the field (the small Never Delay Field near Belmopan was shut in for several years,from discovery in 2007 to production in 2011, although the discovery well was ready for production until the Development Plan and Environmntal Impact Asessment from BNE were approved by GoB)

The above requires a higher volume of oil to be proved by an exploration well in Belize than the volume required for immediate production in the middle of an existing field in Texas.

The volume of oil I indicated is an order of magnitude estimate only. The actual volume required will be determined by Princess and Treaty once some oil is found and decisions have to be taken.