NEW ORLEANS, Aug. 29, 2014 /PRNewswire/ -- TREATY Energy
Corporation (OTCQB: TECO), a growth-oriented energy company in the
oil and gas industry, today reported that its Board of Directors is
pleased to announce the following update and vision statement to
its shareholders and the investment community.
Chris D. Tesarski, Executive
Chairman and CEO of TREATY Energy Corporation, stated,
"September 1, 2014 marks the
beginning of a new chapter in the history of TREATY Energy."
The corporation has signed a LETTER OF INTENT with a private
service company, "PRIVCO" to "liberate the oilfield service" assets
of TREATY Energy into "PRIVCO" as part of the process to build an
exciting, diverse and growth oriented full service company
dedicated to optimizing and enhancing oil and gas operations in
"the Americas."
Of particular interest to TREATY shareholders will be the fact
that PRIVCO has an executed JOINT VENTURE AGREEMENT with a downhole
tool company whose patented process has been credited with
optimizing and enhancing production on several hundred wells in
Canada, Mexico and the
United States. This process when paired with TREATY's
oilfield services unit, will not only give PRIVCO the ability to
optimize TREATY's production, but also allows PRIVCO the ability to
service other clients. This business arrangement comes with a
built in network of six NATIONAL distributors that have been
integral in marketing the tool that will now be important to
building an opportunity platform for the TREATY oilfield service
assets.
In addition, PRIVCO has acquired 50% of the interest of SANDBOX
RESOURCE SOLUTIONS LLC of Abilene,
TX. "SANDBOX" has developed a proprietary process for
converting "produced formation water" from oil and gas wells
into fresh water suitable for a wide variety of applications
including oilfield service, agriculture, and many other uses.
The SANDBOX water management system is being used
commercially by a Denver-based
energy company to integrate into a constructed wetlands project
North of the Yellowstone River in Montana that utilizes the treated formation
water from an oil battery to provide fresh water for cattle,
wildlife, and oilfield applications. Water hauling costs on
this project have been reduced by approximately $3,000 per day. Over thirty five to forty
water-hauling trucks per week have been reduced to three.
TREATY will incorporate the SANDBOX water processing system into
its "Stockton" field operations. Initial drilling reports
indicate the presence of oil but also significant quantities of
water. The decision was made to "go uphole".
Unfortunately, this decision rendered the well basically
unproductive. TREATY's technical team believes that if they
recomplete the well in the lower water bearing zones they can
significantly increase oil production. The SANDBOX system
will allow the company to produce significant volumes of fluid
without the cost of drilling an injection well. The recycled water
will have significant value in drought stricken West Texas.
In speaking about the PRIVCO opportunity Mr. Chris Tesarski, Chairman & CEO of TREATY,
stated "TREATY shareholders will be pleased to note that the
integration of the PRIVCO service platform will now allow the "500
Well Louisiana Project", "Project X" (certain contract
opportunities in Central America
and the Caribbean), and
reinvigorated GEOTECHNICALLY DEFINED operations in Belize to move forward, thereby restoring the
opportunity for TREATY shareholders to see value derived from what
was a previously difficult chapter in the history of the company.
The combination of new management and technically qualified
industry personnel in TREATY and PRIVCO will allow value to be
realized that had for the most part been written down by the
markets and shareholders alike."
"PRIVCO's commitment to integrating a full service operation
into TREATY's growth oriented production platform and the ability
to network its services to a growing number of energy companies in
the Americas make this transaction a very attractive one for
TREATY's shareholders," says Mr. Tesarski
PRIVCO is currently involved in the process of converting to a
publicly traded company by completing the process of acquiring an
existing public entity. Once again, the Board is convinced
that this will provide significant additional value to TREATY's
shareholders. PRIVCO and TREATY will keep shareholders
apprised of developments as they occur.
As part of the changes in structure to the company the Board of
Directors has negotiated a stock based dividend for all TREATY
shareholders in PRIVCO. During a rollout period of the next
90 days, TREATY shareholders as of September
30, 2014 (or such date as the market regulators might
determine), will receive shares of the common stock of PRIVCO at a
rate to be determined subject to all regulatory approvals as are
common to such transactions.
In keeping with the aforementioned transaction and the
commitment of the Board of Directors to increasing shareholder
value, the company will undergo a process of defining TREATY's
identity as an ENERGY PRODUCER. Rooted in a firm belief that
the "Americas" hold vast untapped, bypassed and forgotten energy
reserves the company intends to continue its focus on "finding new
oil and gas in old places."
"We believe that this is the right place for us to be and
welcome other players who focus on exploratory, wildcat plays, but
TREATY will continue to focus on what we KNOW got left behind
instead of risking shareholder value on what we believe MIGHT be
there," says Mr. Tesarski.
To this end, the company wishes to announce the signing of three
(3) new leases (defined by 3D seismic) in the Tuscola, TX area, not far from its Stockton
operations. These leases will give the company the ability to
integrate PRIVCO's service platform into operations thereby giving
TREATY a strategic advantage in developing its production
operations. In addition to the 3D seismic, TREATY has access
through PRIVCO to thorough geotechnical data to assist in making
strong, technically sound strategic development and optimization
decisions with regard to its operational platform.
"TREATY shareholders have stuck with the company through some
very difficult times. Liberating the oilfield service assets
of TREATY and partnering with PRIVCO will lead to strong growth for
our shareholders in two dynamic companies. A reenergized,
reorganized and vibrant energy company and a new, visionary, and
technology savvy oilfield service company. With both
companies committed to a strategy of integration, the Board sees
this as a tremendous step forward" stated Mr. Tesarski. He
added, "It is time to ensure that our shareholders are rewarded for
their loyalty to the company."
As promised, as of August 27,
2014, the company has officially engaged auditors to begin
to undertake the process of bringing the company into regulatory
compliance.
"I am relieved that we have been able to now fully engage in the
process of getting our company into compliance," said Mr.
Tesarski. "It has been my number one priority. I have
promised this to shareholders and they deserve nothing less than a
100% commitment to compliance."
In addition, the Board wishes to assure shareholders that the
company will commit to providing them updates on or around the
15th and 30th days of the next few months
following this announcement utilizing its social media resources
while it transitions the company through this reorganization and
growth phase. The Board looks forward to continuing to
provide its shareholders with positive developments in this new
chapter in TREATY's history.
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Company Links
Website:
http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the
acquisition, development and production of oil and natural
gas. Treaty acquires and develops oil and gas leases which
have "proven but undeveloped reserves" at the time of
acquisition. These properties are not strategic to large
exploration-oriented oil and gas companies. This strategy
allows Treaty to develop and produce oil and natural gas with
tremendously decreased risk, cost and time involved in traditional
exploration.
About Sandbox Resource Solutions LLC
Sandbox Resource Solutions is a privately owned company
dedicated to meeting your produced water requirements. Our
Resource Management System, "RMS" is engineered to remove oil,
solids, iron sulphides and hydrocarbons and is proven to be more
efficient and cost effective than traditional methods. SRS is
applying a patented proprietary technology to treat produced
oilfield wastewater into useable, fresh water. Our ground
breaking technology is a 2 part system designed to reduce and reuse
our most precious resource, water. Micro-Encapsulating
Flocculent Dispersion ("MFD") and desalination allow us to optimise
and maximize our natural resources. The company's focus is to
deliver produced fresh water and subsequent by-products from its
processes, which will be suitable for commercial, industrial and
agriculture sustainability while reducing the strain on our natural
resources.
http://www.sandboxresourcesolutions.com/
Treaty Energy Corporation (TECO) trades on the OTC.
Investors can find Real-Time quotes and market information
for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Forward-Looking Statements
Statements herein express management's beliefs and expectations
regarding future performance and are forward-looking and involve
risks and uncertainties, including, but not limited to, raising
working capital and securing other financing; responding to
competition and rapidly changing technology; and other risks.
These risks are detailed in the Company's filings with the
Securities and Exchange Commission, including Forms 10-KSB, 10-QSB
and 8-K. Actual results may differ materially from such
forward-looking statements.
SOURCE Treaty Energy Corporation