SOURCE: Treaty Energy Corporation

April 22, 2010 12:02 ET

Treaty Energy Corporation and Princess Petroleum Limited of Belize Enter Into Joint Venture Agreement

This Business Venture Is to Implement Exploration, Drilling, and Production of Oil and Gas From Onshore and Offshore Blocks in Belize

HOUSTON, TX--(Marketwire - April 22, 2010) -   Treaty Energy Corporation (OTCBB: TECO), a growth-oriented energy company in the oil and gas industry, today announced that it entered into a 50\50 Joint Venture Agreement with Princess Petroleum Limited ("Princess"), a Belize company that is engaged in the business of exploration, development and production of crude oil and natural gas.

Princess Petroleum Limited is a part of The Princess Group International, which is engaged in the development of Hotels, Casinos, and other Real Estate ventures throughout South America, the Caribbean, and Europe. Princess received one of 17 concessions from the government of Belize to explore for oil and natural gas. As part of the joint venture Treaty will have the right to explore for oil and gas on a total of 2,000,000 acres. The concession consists of 1,800,000 acres of off shore exploration, and 200,000 acres of onshore exploration.

Treaty has completed, as part of its due diligence, a satellite survey of the entire concession. Satellite imaging coupled with specific scientific technology and experienced engineering analysis can identify areas containing hydrocarbon deposits. Based on initial findings, Treaty is targeting a 10,000 acre area in the south central part of Belize to place its first well. This site is located off the southern highway which provides quick access to ports in Punta Gorda and Belize City.

Treaty has engaged a highly respected geoscientist to analyze all data currently available and guide Treaty to the area with the highest likelihood of achieving a high producing well. This geoscientist will go to Belize in Early May 2010 to do soil samples and other studies needed to select the first well site. Treaty intends to start drilling its first well no later than July 1, 2010.

Currently there is one company, Belize Natural Energy Ltd. (BNE), actively exploring its onshore concession. BNE started exploration in 2005 and as of May 2009 it is producing an average of 5000 barrels of high grade crude oil per day (API 40.8 Sulphur 0.89%) out of ten wells that they have drilled. Other groups are starting to come to Belize to explore the offshore area that Treaty believes will produce huge wells that could produce thousands of barrels per day based on information supplied to Treaty by the satellite surveys. Most of the offshore areas in Treaty's concession are in shallow water and many locations showing hydrocarbon deposits have small land formations which would make it very economical to drill in terms of offshore drilling costs.

Treaty will begin to analyze the offshore concession towards the end of this year, 2010, using satellite and other methods to help in the selection of optimal locations for well sites. Most of the offshore areas of the concession are shallow water and many locations have small land formations which would make it very economical in terms of the offshore drilling activities.

The country of Belize is located in Central America, in the south of the Yucatan Island to the southeast of Mexico. It is surrounded by Mexico in the north, by Guatemala in the west and south and by the Caribbean Sea in the east. Its old name was British Honduras. 

Andrew Reid, President and COO of Treaty Energy, commented, "It is difficult to put into words how pleased we are that Treaty Energy has entered into this joint venture with Princess Petroleum. We believe that this business opportunity has put our company on the launch pad to major growth as a significant player in the oil and gas industry."

Mr. Reid added, "In putting this joint venture together, we had the distinct pleasure of working with the key people at Princess Petroleum, including Mr. M. Hamdi Karagozoglu, Managing Director of Princess. With his leadership and cooperation in this business relationship, we look to a very successful oil and gas program that will benefit Princess, Treaty and the country of Belize."

About Princess Petroleum Limited
Princess Petroleum Limited, a company organized and existing under the laws of Belize, is an entity engaged in the business of exploration, development and production of crude oil and natural gas. Its oil and gas properties consist of two million acres of onshore and offshore areas of Belize that are owned by its parent organization, The Princess Group International, a major developer of hotels, casinos and real estate in South America, the Caribbean, and Europe. For more information go to:

About Treaty Energy Corporation
Treaty 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's headquarters is located in Houston, Texas. For more information go to:

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 SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.

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