Treaty Energy Corporation announced results of the first 24 hours of the 48 Hour Certification Test of the Madeley F1H well that Treaty has purchased and is putting into production.
Andrew V. Reid, Chairman of Treaty Energy Corporation, stated, "The original intent for this well was to re-complete the well by drilling a much longer lateral line into the Fredricksburg Zone that currently is drilled only to 16 ft. Treaty will eventually drill this lateral to a length of 1000 ft or possibly to a maximum of 1770 ft."
Wayne Knappick, the project manager overseeing this well, has informed Treaty that this well has an unusually high pressure for a well in this zone. The well is currently producing 147 barrels of oil and 762 MCF of natural gas per day prior to the planned extension of the lateral which is expected to greatly improve the production level of this well.
Treaty is in the process of performing a "48 Hour Certification Report" on this Madeley F1H Well.
Treaty will start selling the oil from this well today weather permitting. There are currently 5-6 loads to be picked up of Texas Sweet Crude and of course this is growing by approximately one load per day at the current production level.
Because of the high well pressure and current production rate of the well, Mr. Knappick will produce the well as is until the pressure is reduced to a level that the well can be re-entered safely and the lateral extended.
Finally, Mr. Reid stated, "I am very pleased with the well as it is which will produce approximately $11,000 per day net of royalties, or more than $4 million per year, at the current level of production."
Mr. Reid added, "Treaty feels that the original estimated levels of production after re-completion were likely underestimated by a considerable amount and will complete that portion of this project once the well can be safely re-entered. Further progress on this well and others to be reworked or newly drilled on our new leases in Shelby County Texas will be released as developments occur."
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