NEW ORLEANS, Jan. 22, 2014
/PRNewswire/ -- Treaty Energy Corporation (OTCQB: TECO)
(www.treatyenergy.com), an international energy company, today
reported results for its third quarter ended September 30, 2013. The third quarter highlights
the first quarter gains from new oil and gas field development
operations.
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The third quarter is marked as the first quarter that revenues
were recorded from Treaty Energy ("the Company") on the Company's
Mitchell project in Tuscola, Texas. From the two wells
drilled, oil and gas revenues were at $79,322 with revenues extending into the fourth
quarter. This 4.61% increase in revenues is the result of
eliminating the Company's marginal well inventory (over 50 wells)
and replacing the Company's inventory with two new operating wells,
marking a successful revenue replacement and cost cutting move for
the Company.
Total revenues for the nine months ended September 30, 2013 are up 34.33% to $221,984 and are expected to increase with
further projects extending into the fourth quarter of 2013 and into
the first quarter of 2014.
In addition to replacing its marginal well inventory, the
Company further reduced general and administrative costs to
$435,173, down from $4,680,631, a decrease of 90.7% as compared to
the three months ended September 30 a
year earlier. The general and administrative costs for the nine
months ended September 30, 2013 of
$4,393,226 are reduced by 25.35% as
compared to the same nine months of the prior year.
Total expenses for the three months ended September 30, 2013 declined 71.68% to
$1,452,851 from $5,130,780 as compared to the same three months
of the prior year. Total expenses also declined 11.51% to
$6,100,530 as compared to the same
nine months of the prior year.
The total operating loss for the third quarter was down to
$1,373,529 as compared to
$5,055,113 for the same period a year
earlier for a reduction of 72.83%. This is an indication that the
Company is moving to a more efficient and streamlined
operation.
The Company showed a Net Income of $27,321 which was attributable to an adjustment
in Derivative Liability expense.
On the subject of the third quarter financials, Chief Executive
Officer of Treaty Energy, Andrew V.
Reid stated, "The third quarter financials show a very clear
picture for shareholders. Expenses are down across the board,
revenues are equal to or slightly higher on a much smaller well
inventory and new projects are underway. Treaty Energy is moving in
the right direction with this new and successful transition to oil
and gas field development."
Mr. Reid further explained the overall strategy for the Company,
"Treaty Energy plans to keep true to its original plan to acquire
and develop leases that are underutilized, but will bring in new
business partners to limit liabilities and keep costs low to
further move the Company quickly into a cash flow positive
future."
The third quarter financials, along with all other filed
financials, can be found on Treaty Energy's SEC filings page
located at http://www.treatyenergy.com/investors/SEC-Filings.
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Fax: 504-324-0844
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.
Treaty Energy Corporation (TECO) trades on the OTCQB, the
marketplace for companies that are current in their SEC reporting
requirements. 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