Treaty Energy Corp. (fka TECO)

[Belize Oilwatch]

This could be the last nail.....

Please find below a statement I have sworn in front of a Justice of the Peace today in Belize City, Belize, Central America.

Based on the facts in the Sworn Statement below, you decide whether this is the last nail in Treaty’s coffin (the end) or the last nail in the Great Western Railroad (the start of something really big).

Time will judge. I am done.

Cheers
Belize Oilwatch

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Sworn Statement about Treaty Energy Corporations Activities in Belize


I first got interested in Treaty in July 2011. I volunteer for the Belize Humane Society and I was taking a young Belizean volunteer to Independence Village to drop off a puppy “King Arthur” to catch the Hoky Poky after taxi to Placencia. Belize badly needs the revenue from and oil industry, the Belizean volunteer was a school kid interested in his country’s future and I was a recently retired oilman proud of the oil industry – so I wanted to take him along to show him Treaty’s 5 proposed drilling locations in the area.

The locations were posted in a geological study on Treaty Website, so I plugged them into my GPS and off we went. I was very surprised and disappointed that most of the locations were in places that I couldn’t even access in my SUV but (prophetically as it turns out) I showed him one road to a fish farm away from the posted locations and told him “that is the kind of road that an oil company would need to move drilling equipment to a wellsite”. Interestingly that was the road than Treaty drilled from for San Juan 1 and 2.

The reason I was there was that Andrew Reid Treaty CEO had stated “"Ongoing developments and significant preparation in Belize are proving advantageous to a successful drilling program. Upon arrival of the drilling rig and support equipment by sea on or about July 24/25, our Company will move ahead with an oil program that holds the potential to be a magnificent life changer for all Treaty stakeholders and the people of Belize."

See link

That experience led to emails and calls to Treaty’s CEO, so that I could find out what was going on. And when activity actually started and Treaty held a press conference in Belize City on September 27th 2011 for the foundation of BELIZEAN NATIONAL LEADERSHIP FUND, I joined up Treaty Facebook as did many other interested Belizeans. And I was seen in news reports of the event and in photos with a preacher (Jimmy LaRose) and a bishop (Rev. Redfern II), both Treaty Charitable Trust Directors, despite my attempt to keep a low profile at the event.

Many Belizeans didn’t trust Treaty (represented by Brian D. Luczywo at the time) or Treaty Charitable trust (represented by the two reverends) at the Press conference. I met the two reverends later at the municipal airport and invited them into my house to meet my wife and have a cup of tea. They were just returning from Placencia where Treaty had just donated a truck or something (I thought it was strange at the time for Treaty to be donating stuff before they had actually invested anything in the business itself - but I let it pass).

One thing led to another and my posts, which were based on facts of what I had seen of Treaty’s operations in Belize and my experience of the international and Belize oil, were removed from Treaty’s Facebook and I was prevented from access to the site. I responded with an email to Treaty defending what I had said and requesting they restore my Facebook access or I would report them to the SEC. Treaty responded to this, with a letter from a Louisiana Attorney on October 18th 2011, threatening action under Louisiana law unless “I cease and desist” and a letter from a Texas lawyer notifying me that what I said in my email constituted “blackmail” and threatening action under Federal law.


I continued to post the facts of that I see and hear of Treaty Belize operations on Ihub: Sometimes at the cost of being chased with a machete when I slowed down at Treaty’s inactive wellsite in Belize (on a trip to Placencia - this time with a different young Belizean Humane Society volunteer) on 9th June 2012 and more often at the cost of receiving insults and real name allegations from a few members on Ihub (and later on iHangout).

On February 13th 2013, I Submitted a TRC complaining about “Material misstatement or omission in a company's public filings or financial statements, or a failure to file“ to the SEC about Treaty Energy Corporation on three counts:
(1) Misleading shareholders by stating that exploration prospects in their exploration area were similar to the successful Spanish Lookout Field;
(2) Quoting falsely high production in PRs, and
(3) Claiming a false oil strike.

By the time of San Juan 3, I visited the wellsite numerous times with Treaty’s permission. During these visits, Treaty Belize asked me to keep the details of the well confidential - which I have done, I was allowed to post photos of the wellsite on Ihub and I passed a selection of the photos that I took to Treaty and they used one of these to illustrate their international operations in Belize. My wife even visited the wellsite with me and she considers Max Mohamed a friend as much as I do. She even took a photo of us both and visited the wellsite again with my son on their way to Punta Gorda while I was at home.

So with Max Mohamed as a friend, I started communicating with him regularly and he occasionally asked me for oil industry advice – sharing our professional experience, him as a geologist and me as a Petroleum Engineer. Under the terms of Treaty’s request for confidentiality, he felt able to show me the well logs and I even helped him look for the VIN number of the rig (he wanted it to be able to order spare parts and I wanted it to pass to interested third parties in the USA who asked for it as part of their discussions with Homeland Security).

So a couple of weeks ago, my wife was going to go on a Placencia trip for the Belize Wildlife Conservation Network, while I stayed at home, and I tried to contact Max Mohamed to see if he would be at the San Juan 3 wellsite for her to visit. I got no response from Max to phone calls, texts and emails, so I contacted Keon Garbutt of Princes Petroleum who advised that Max was in the USA.

I posted an update on this on Ihub on 4th December.

See Link

Then when I was following up about the stuck SJ3 packer at the request of a third party, I received additional shocking information that Max Mohamed was no longer working for Treaty which then posted on Ihub on 6th December.

See Link

Treaty made statements in their December 9th newsletter which – in my opinion – we very misleading about their operations in Belize, based on my local understanding.

http://www.treatyenergy.com/news/treaty-energy-corporation-newsletter-week-december-9-2013

I didn’t know what to do about Treaty’s false statements except share them with Max Mohamed and do nothing, which he thought was funny.

Subsequently, Max Mohamed advised that if I revealed what he told me there might be legal implications for him. So he suggested that I check about his employment status with Treaty with Geology and Petroleum Department of the Government of Belize which I did on December 12th. I talked directly to Andre Cho, the Director of Petroleum. What he said in that phone call and a further follow up call with Keon Garbutt, during which he specifically gave permission for US interested parties to contact if they had queries, I then posted verbatim on Ihub on December 12th.

See Link

Later on December 12th 2013, I wrote an email to Sean in Treaty IR asking that in the course of updating their website they removed my photo which with the well status posted there – in my opinion – were misleading.

(see email 1 transcript below)

On Friday December 13th 2013, I received an email with various legal requests and false statements from Sean in Treaty IR. It included:
“At this time, we formally ask that you please cease and desist on the matter.”
“Furthermore, we formally request that you cease communications with our Company.”

(see email 2 transcript below)

As I am unable to respond to Treaty about their email, following their email, I have prepared this sworn statement of facts to post on Ihub to inform Treaty shareholders who can take this up with the Treaty in due course.

I swear that this a true statement based on my recollection of events.

I will be posting this statement on Ihub.

I will be copying this statement by email to my Belize and US attorneys, who have not reviewed this in advance.

I will be copying this statement to the SEC.

Signed:




Name:
Date:
Signed by the originator in Belize City

Witnessed:




Name:
Date:
Witnessed and signed by Justice of Peace

Name other details will be filled in at the time of swearing and signed versions will be scanned and available to be sent by email.

Legal Rider

In my view, posts under an alias on Ihub by myself and others are protected by the judgement in case No.2:11-cv-01314-CJB-ALC Sec.J Div.5 / Treaty Energy Corporation vs. John Does.

The real identities of Ihub members are protected – in my view - by unique aliases and Ihub terms of service.

‘Ihub’ refers to Treaty Energy Corporation board at ‘http://ih.advfn.com/’

‘iHangout’ refers to Treaty Energy Corporation board at ‘ttp://investorshangout.com’

Attached Email Transcripts ( I have removed my real name and the email details and the email details of other Treaty shareholders in this correspondence to preserve the confidentiality of Ihub aliases).

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Email 1
Dec 12 at 7:33 PM
To: [e-mail]
Cc:

Treaty Website – Belize Update Required

Sean,

Thanks for the updates to the website done to reflect Treaty's revised holdings and plans in Texas.

I have received updates from Princess Petroleum and Geology and Petroleum Department (GPD) of the Government of Belize today indicating that: Treaty no longer operates in Belize; Max Mohamed (former Treaty Belize CEO) no longer works for Treaty; Wells San Juan 1,2 and 3 were dry holes, and Princess Petroleum who are now responsible for them have submitted Plugging & Abandonment plans for all three wells to Belize GPD.

I would be grateful if you could therefore update Treaty website information to reflect this and please remove my photograph of San Juan 3 well site from your website, as its use to illustrate Treaty operations in Belize is no longer appropriate.

I am surprised at how inconsistent your last newsletter was with the information that has been forthcoming today - you surely knew all this already.

Cheers

Retired Oilman and Scuba Diving Instructor
Belize City, Belize CA

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Email 2


Sean Douglass

Dec 13 at 9:52 AM

To:
Cc:

Treaty Website – Belize Update Required

,

The information that you have posted is mostly incorrect and based on conversations with the relevant parties (Max, Keon, Hamdi and Mr. Mathayysse) and believe that in the short (2/7 min) conversations you had, you have misinterpreted the facts and jumped quickly to conclusions on the subject and have caused irreparable harm to our Company.

At this time, we formally ask that you please cease and desist on the matter.

Keon has informed us that he did not give you permission to publicly post his information on InvestorsHub or his statements on the matter. We have spoken to both Keon and Princess in Belize and have asked for a contract extension on the contract until the end of January. As of 9AM this morning, this contract is tentatively approved and will likely be approved today per their attorney.

As stated in our last newsletter, we are evaluating our international operations. This position is still factually still true at this time and we will be using this time to evaluate our international operations.

Mr. Mohammed is assisting us in our international operations at this time and to state that he is not at Treaty Energy Corporation is incorrect. He is, however, back at home with his family in Texas as we evaluate our international operations. It will be up to Mr. Mohammed to continue his employment at Treaty Energy Corporation or work for another Company. At this time, we find that it is inappropriate for you to state information on behalf of Mr. Mohammed without his consent. I just spoke with Max on the issue, and he agrees with this sentiment and approved the above statement verbatim.

The one part of your post that is correct is that Treaty and Princess Petroleum have submitted a voluntary P&A to plug San Juan 1-3. But another fact that you have incorrect is that Princess will be paying for it. Per our operating contract, Treaty Energy Corporation will be plugging the wells to international standards and bear it at our own cost. Princess did not create this plan, but they submitted it on behalf of Treaty as per our working agreement (I just spoke with Max about this and he said he drafted the document). This is part of our larger evaluation of our international operations.

We firmly believe there is still oil in Southern Belize and we are looking at the prospect of another drilling option should it become available with discussions with the Belize Government and Princess Petroleum, but again this is part of the larger operational evaluation that we are currently conducting and are only tentative plans. We have spent over $3mm in Belize and we very much believe in the Southern Belize Oil Prospect. We continue to inject money into the local Belize economy despite our operational issues and would like to improve our international operations as much as possible. There are many options available, including abandonment, but as a Company, we have not officially made that announcement or decision.

Lastly, under no circumstance can an international party that has no affiliation with any party involved in the matter, state how we present our investment materials or state that we are factually incorrect. We are still evaluating our international operations and until a formal announcement is made, then all relevant information will remain on our investment materials. This policy is similar to that of other corporations and is allowed under the SEC guidelines until an 8-K is filed or it is announced in a 10-Q/10-K.

I will be happy to remove your photos, but you requesting we remove information based on your information is similar to me telling you how to run your dive shop in Belize. In which case, we deny your request to adjust our marketing and investment materials based on our own internal operations and conversations on the matter.

Furthermore, we formally request that you cease communications with our Company. Our Company treated you with respect and welcomed you onto our sites to inspect them per your wishes. Unfortunately, based on your recent communications and actions, we respectfully ask that you no longer attempt to contact the Company or any of our shareholders without their consent.

Personally, I have always enjoyed speaking with you and have been willing to work with you on any of your concerns, however these actions have caused irreparable harm to the Company and we are forced to take this position.

Thanks,
Sean Douglass
Investor Relations
T: 504-754-6926
T: 504-301-4475
[e-mail]

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the system manager. This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

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Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, general economic or industry conditions, nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.