Replies to post #71459 on Treaty Energy Corp. (fka TECO)

[tdbowieknife]

Treaty never had the expertise or warwithall to do exploration in Belize and should have never been given the contract to begin with. Both those are requirement for Belize approval. Bet the GOB is still kicking them selves for allowing it. That also makes me believe Treaty Energy Belize was a scam from the Start.

Belize was nothing but a show for investors.

Check out Paragraphs 5,6, and 7...

https://docs.google.com/file/d/0B8fPIL-cKPM-YU5yUWxOT3ZhTjQ/edit

[tdbowieknife]

Treaty didn't even bother to do seismic. Every other explorer in Belize has. Treaty's main consideration in picking a drilling site was whether or not there was a road to it. LOL!

[Belize Oilwatch]

New World Oil vs. Treaty PPS Difference Why?

I think it's a matter of the number of lower number of shares issued by New World Oil (249 million fact New World Oil end 2012 Financials) than Treaty (813 million fact Treaty end 2012 Financials)

and because:

- New World Oil are a company focused on international oil exploration (a high cost, high risk, high reward business) where the chance of wells being dry holes is understood and best exploration technology is applied to reduce the chance of them. IMO

- Treaty are a company focused on infill drilling in existing marginal oilfields (a low cost, low risk, low reward business which can't be extrapolated to international wildcat oil exploration) where dry holes are not expected and where little exploration technology is applied to reduce the probability of them. IMO

Cheers
Belize Oilwatch

[geopressure]

"By the way, Can anyone explain why New World Oil currently has a pps of $.67 and I can't find any information saying they have ever produced a single drop of oil. How is that share price justified much less the $14.00 pps they had around November of last year?"

Their share price is irrelevant unless you also consider the number of outstanding shares. You cannot use share price alone compare a company with 250MM outstanding shares to a company with 2 Billion outstanding shares… Market Cap would be a more appropriate means of comparing the companies - it is just commonsense.

NWO's high market-cap to production ratio is due to their prospects being rather large…

Whereas Treaty's wells target virtually no possible reserves due to poor quality leases & concessions. Sadly, TECO does not have enough experience to realize their low quality. There is a lot of oil out there yet to be discovered, but you are not going to find it by throwing a dart at a map in Belize, or by drilling 2K foot wells in a densely drilled area of West Texas. Unfortunately, TECO finds it more important to hire a Public Relations Person than to hire a geologists...