Treaty Energy Announces Update on Town Oil Acquisition
Treaty Energy Corp (OTCBB:TECO) Intraday Stock Chart Today : Monday 28 February 2011
Treaty Energy Corporation (OTCBB: TECO) today announced it has passed the expected February 21st closing date for the Town Oil Company assets purchase due to issues beyond its control.
Treaty's lender is located in an area that has been affected by continued severe weather which has caused the lender to ask for a closing date of April 1, 2011.
The reasons given by the lender are lack of time to finish the title searches on the 57 leases and time needed to finalize the loan documents based on the results of the title searches.
Treaty has asked for additional time from Town Oil and has been told to continue toward the loan closing and they would hold off on taking possession of the 60 million shares of Treaty Energy stock held in escrow as liquidated damages should the loan not close. Just to be clear, these shares are held in an escrow account in Kansas and can be converted from the listed owner of the shares to Town Oil at their discretion should the loan not close.
Treaty's lender will work diligently to close this acquisition as soon as possible.
Treaty's CEO Andrew Reid stated, "Treaty Energy has enjoyed a very good relationship with Town Oil management and appreciates their willingness to continue to the closing of this acquisition."
About Treaty Energy Corporation
Treaty is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. For more information go to: www.treatyenergy.com
Forward-Looking Statements:
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company's filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
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