Treaty Enters LOI to Purchase Tx. Leases
Treaty has signed a definitive letter of intent to purchase additional producing oil and gas leases in the Shackelford County Regular Field, in the Texas 7B Oil District.
This acquisition is projected to close on April 14, 2011. The detailed terms of this acquisition will be released upon closing in a Form 8K filing. Production on these leases for the last reported month of January 2011 was 379 BBLS of sweet crude oil.
The operator on these new leases will be Treaty's recently acquired subsidiary, C & C Petroleum Management LLC, which has applied for its operator's number along with all the required bonding being posted. The Company expects C & C Petroleum Management LLC to receive its operator number in the immediate future and to see its first revenues from oil production in Texas before the end of April.
Andrew Reid, CEO of Treaty Energy Corporation, stated, "Treaty Energy has numerous acquisitions that are forthcoming similar to this one that have tremendous up-side potential at a reasonable purchase price, while providing other opportunities for our Company to start producing and increasing our oil revenues. Treaty is also expecting new oil production to come from our Belize project, as well as other areas in Central America that we are currently pursuing."
Additionally, Mr. Reid stated, "We believe Treaty is well positioned to see rapid growth in oil production over the next several months through a combination of well workovers on these new leases, and additional acquisitions that are projected to come on line in a rapid fashion."