Treaty Energy entered into a 50\50 Joint Venture Agreement with Princess Petroleum Limited.
Treaty has completed, as part of its due diligence, a satellite survey of the entire concession. Satellite imaging coupled with specific scientific technology and experienced engineering analysis can identify areas containing hydrocarbon deposits. Based on initial findings, Treaty is targeting a 10,000 acre area in the south central part of Belize to place its first well. This site is located off the southern highway which provides quick access to ports in Punta Gorda and Belize City.
Treaty has engaged a highly respected geoscientist to analyze all data currently available and guide Treaty to the area with the highest likelihood of achieving a high producing well. This geoscientist will go to Belize in Early May 2010 to do soil samples and other studies needed to select the first well site. Treaty intends to start drilling its first well no later than July 1, 2010.
Currently there is one company, Belize Natural Energy (BNE), actively exploring its onshore concession. BNE started exploration in 2005 and as of May 2009 it is producing an average of 5000 barrels of high grade crude oil per day (API 40.8 Sulphur 0.89%) out of ten wells that they have drilled. Other groups are starting to come to Belize to explore the offshore area that Treaty believes will produce huge wells that could produce thousands of barrels per day based on information supplied to Treaty by the satellite surveys. Most of the offshore areas in Treaty's concession are in shallow water and many locations showing hydrocarbon deposits have small land formations which would make it very economical to drill in terms of offshore drilling costs.
Treaty will begin to analyze the offshore concession towards the end of this year, 2010, using satellite and other methods to help in the selection of optimal locations for well sites. Most of the offshore areas of the concession are shallow water and many locations have small land formations which would make it very economical in terms of the offshore drilling activities.
The country of Belize is located in Central America, in the south of the Yucatan Island to the southeast of Mexico. It is surrounded by Mexico in the north, by Guatemala in the west and south and by the Caribbean Sea in the east. Its old name was British Honduras.
Andrew Reid, President and COO of Treaty Energy, commented, "It is difficult to put into words how please we are that Treaty Energy has entered into this joint venture with Princess Petroleum. We believe that this business opportunity has put our company on the launch pad to major growth as a significant player in the oil and gas industry."
Mr. Reid added, "In putting this joint venture together, we had the distinct pleasure of working with the key people at Princess Petroleum, including Mr. M. Hamdi Karagozoglu, Managing Director of Princess. With his leadership and cooperation in this business relationship, we look to a very successful oil and gas program that will benefit Princess, Treaty and the country of Belize."
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