SOURCE: Treaty Energy Corporation

March 17, 2011 09:55 ET

Treaty Energy Updates Progress on Belize

HOUSTON, TX--(Marketwire - March 17, 2011) - Treaty Energy Corporation (OTCBB: TECO), a growth-oriented energy company in the oil and gas industry, today announced a full project review meeting occurred early last week in Belize for the benefit of the leadership of Princess Petroleum Limited, Treaty Energy's Joint Venture partner on the 2 million acre concession in Belize.

Progress to date is considered very positive by all participants in the review. The project review covered the following areas:

  • Drilling Locations: R.S.S., the company's geoscience contractor, has thus far identified approximately 85 anomalies, each of which could be a possible drill location. R.S.S. is upgrading certain of its imaging equipment to more accurately define the perfect drilling locations for the initial field. This new equipment will be delivered from Texas to the Belize concession in the 1st week of April, and is expected to be a significant benefit to locking in the initial drilling locations.
  • New Aircraft: Treaty is intending to acquire a Helio Courier Aircraft to replace the Cessna 210 that has proven not to be up to the task in Belize. The Helio Courier is probably the most solid and steady aerial mapping/photography and surveying platform around. Its unique slow flight characteristics allow it to fly safely and accurately at slow speeds. It is the ideal aircraft for R.S.S. to perform flying scan patterns with all five pieces of imaging/scanning equipment needed for most efficient performance of the task. This new aircraft will be used to shoot the land and offshore concessions, as well as any additional concessions that Treaty Energy may take on over time.
  • Drilling Contractors: The Company has received a number of competitive bids from drilling contractors, and has come to terms with Guatemala City based company. The selected drilling company has a variety of drilling rigs available and on approximately 4 weeks' notice would have the most suitable rig, depending on drilling depth, in place for the first few anticipated wells.
  • Services and Supply Contractors: Treaty has made arrangements with several services contractors that will provide needed services, such as cementing, wire line logging, perforation, mud logging, geological mapping and engineering for well design. The selected Supplier contractor will provide such things as drilling mud, pipe, generators and blow out preventers.
  • Environmental: Once the initial drilling locations are selected, the Company will sign an environmental drilling contract, and once oil is proven an environmental impact assessment (EIA) program will move forward. The EIA will include advertising and holding meetings to inform locals over a two week period of the Company's drilling program that is moving forward in the area. The Company will be required to submit an EIA report on a monthly basis.
  • Belize Project Investment: The Company reviewed the details of its financial commitment to the Belize project with the Joint Venture leadership team, and was pleased to indicate that to date $725,000 has been invested in the Belize project by Treaty Energy. 
  • Drilling Schedule: The Company explained that it has made very strong progress on this project at a relatively reasonable level of expenses to-date, and it is very close to announcing up to three initial drilling locations, with a projected drilling date within 60 to 90 days. The Company indicated further that it is impossible to give an exact drilling date at this time since there are many factors that can impact the schedule that are totally out of the Company's control.

Andrew Reid, Chairman and CEO of Treaty Energy, stated, "While there are many constraints on what information can be made public at this phase of the Belize project, I remain very pleased and impressed with the progress we are making in Belize."

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. For more information go to: www.treatyenergy.com

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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