Treaty Energy to Acquire Oil & Gas Lease in West Texas
Treaty Energy intends to acquire a 360-acre lease in Taylor County, Texas with three existing wells that, with minor rework, are projected to be back into production within 30 days. This is planned as an asset purchase, and will include all existing down-hole and surface equipment.
The Company intends to drill multiple additional wells on this lease in locations that have been identified by Infrared Survey showing hydrocarbon signatures that give reasonable assurance of successful holes.
This lease is currently under a Letter of Intent (LOI) that provides for a 90-day due diligence period, but the purchase transaction may be closed at anytime sooner with the consent of the parties. Full details of the transaction will be disclosed following closing.
As has been stated by Treaty Energy in prior releases, the Company considers this leasehold to be but a small step forward in the implementation of its growth strategy. The Company has identified several targeted lease acquisitions. Once this acquisition is complete and production from its existing wells has commenced, further study and plans to drill additional wells move forward.
This new lease is in compliance with Treaty's plan to acquire low risk development and value added leaseholds that will allow the Company to maximize its return on investment dollars per barrel of oil or mcf of natural gas recovered and sold. Treaty's current plan calls for the acquisition of additional small to mid-sized leaseholds at the rate of one per month for the foreseeable future. This is an aggressive program, but appears to be within the Company's reach.