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Replies to post #98138 on Treaty Energy Corp. (fka TECO)
11/30/15 8:58 PM
However, because the Company does not currently have the resources available to pay for the PR LANDS interest, ALBERTACO has agreed to hold this interest in trust and loan the Company its share of the proceeds from the PR LANDS interest, which is projected to be approximately $10,000-$15,000 per month dependent on commodity pricing, for the next six (6) months.
If Treaty Energy Corporation is able to fulfill the terms of the Farm-Out Agreements by August 31, 2015, then the Company can exercise its right to purchase the PR LANDS interest, which is projected to produce approximately 25 BPD of oil, gas, and natural gas liquids, and to participate in the two (2) Farm-Out Agreements, the combined production of which is projected to be approximately 200 BPD of oil, gas, and natural gas liquids, for $250,000 (CDN) maximum.
If Treaty Energy Corporation is unable to fulfill the terms either of the two (2) Farm-Out Agreements by October 31, 2015, then the Company would be required to pay ALBERTACO $250,000 (CDN) plus any funds advanced to the Company in order to purchase the PR LANDS interest and the right to participate in the two (2) Farm-Out Agreements. Should the Company acquire the PR LANDS interest but fail to fulfill its obligations under either of the two (2) Farm-Out Agreements, the right to participate in the two (2) Farm-Out Agreements would automatically expire on December 31, 2015, unless both parties agree in writing to an extension. Alternatively, the Company continues to retain the right to decline the purchase the PR LANDS interest and the right to participate in the two (2) Farm-Out Agreements at any time, in which event it would be required to repay ALBERTACO whatever funds it has advanced, including interest at an annual rate of 12.5%, by December 31, 2015.
