Treaty Energy Corporation (OTCBB: TECO) is a growth-oriented company in the oil and gas business. The company acquires and develops oil and gas leases which have “proven but undeveloped reserves”. These properties, which are not strategic to larger companies, allow Treaty Energy to develop and produce oil and natural gas with decreased risk, cost and time involved in comparison to traditional exploration companies.
The company announced today that it has successfully closed on the acquisition of a 70% working interest on a lease in Morgan County, Tennessee. This acquisition was completed with Green Light Energy LLC, with which Treaty Energy has several other projects moving toward completion. The lease has wells that are currently being re-entered after having been shut in for some time.
One well has been re-entered and is currently producing in the 8 to 10 barrels of oil per day range. Additional work planned on this well is expected to further enhance its production. The second well is in the workover stage and will be completed by mid-January. All of the wells are expected to produce in the 8 to 10 barrels of oil per day range.
Randall Newton, CEO of Treaty Energy, commented on the deal, “This acquisition, while small, is a first step in a much larger business plan with Green Light Energy. As this relationship develops further, we’ll be sharing more information with our investors.”