SOURCE: Treaty Energy Corporation

December 21, 2009 09:45 ET

Treaty Energy Closes on Tennessee Oil and Gas Lease

Tennessee Lease Includes 4 Wells With Estimated Production of 40 bbl per Day

HOUSTON, TX--(Marketwire - December 21, 2009) - Treaty Energy Corporation (OTCBB: TECO), a growth-oriented energy company in the oil and gas industry, 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 four 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 bbl 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 bbl per day range. However, Green Light Energy LLC has guaranteed a net production to Treaty Energy of 4 bbl per day for the first 12 months of production after all workovers are completed. Projected life span on wells in this area exceeds 20 years.

Randall Newton, CEO of Treaty Energy, commented, "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."

Mr. Newton went on to note, "Even though the legal process has taken far more time than anticipated, additional closings on potential deals that were previously reported are imminent and will be announced as they take place."

Joe Grace, President and COO of Treaty Energy, stated, "Treaty Energy is currently in the process of enhancing its website and will soon be including a page that will provide our investors monthly reports on the production of each of the company's wells. This method of providing information to our investors again illustrates our commitment to corporate transparency."

About Treaty Energy Corporation

Treaty Energy (TECO) is engaged in the acquisition, development and production of oil and natural gas. The company 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 Energy to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. The company's headquarters are located in Houston, Texas. For more information, please visit our website at:

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.

Contact Information

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