Treaty Wraps Up Acidizing Process in Tennessee

Treaty has successfully performed the acidizing process on its Joseph Schwallie #1 well in Pickett County, Tennessee.

On site during the acidizing process were John Barksdale, President of Treaty Energy, and Gerard Danos, Vice President and COO of the Company.

Mr. Danos commented as follows about the process and results, "After video logging of the well, which identifies the fractures in the formations, the well was acidized with 1,500 gallons of 18% hydrochloric acid. The zone treated was the Stones River formation at a depth of 1,128 ft. and the well seemed to treat well. The well was shut in for a half hour, and then slowly blew back the spent acid for approximately 2 hours. The well service contractor then began swabbing the well to continue removing the fluid from the well. It was then shut down overnight and then swabbed again the next morning. At this point it was decided to unseat the packer and run the down hole pump and rods into the well."

John Barksdale indicated that he would begin pumping the well late Monday or Tuesday morning using a gasoline motor on the pump until the final electrical service is connected to the well. All the spend acid and residual fluids will be removed from the well prior to knowing the final results of the treatment process.

Gerard Danos commented that he is very optimistic about the future production on the Joseph Schwallie #1 well. Additionally, Mr. Danos stated, "Plans are to now proceed to the Robin Moody #1 well to do the same acidizing treatment."

Based on results of these two wells, Mr. Barksdale has picked the first site for a "new" well that will be located near the Joseph Schwallie #1 "re-entry" well. Treaty will continue to post information on these wells and other Treaty operations and acquisitions as its multiple projects move forward.

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