Treaty Energy Corporation Reports Results for First Quarter of 2012
NEW ORLEANS, June 26, 2012 /PRNewswire/ — Treaty Energy Corporation (OTCQB: TECO) (www.treatyenergy.com), an international energy company, today reported results for its first quarter ended March 31, 2012.
Revenue for the three months ended March 31, 2012 increased to $57,016 from $nil revenues in the same period a year earlier. These revenues are from oil production from its Texas leases.
Net loss for the first quarter of 2012 was $769,302 or nil per diluted share, an increase from the Net loss of $245,725, or nil per diluted share, for the first quarter of 2011.
Other Financial Highlights:
- Total Assets increased to $2.037 million, an increase of 398% at March 31, 2012 from $408 thousand a year earlier.
- Additional Paid In Capital rose to $9.7 million, an increase of 675% at March 31, 2012 from $1.25 million a year earlier.
- Total Stockholders’ Equity improved to a negative $290 thousand at March 31, 2012, an improvement of $591 thousand from the Company’s negative net worth of $881 thousand a year earlier.
- The Company secured a funding commitment of $1,450,000 in Q1-2012 for a 9-Well Drilling Program (2,300 – 3,000 ft wells) on its Texas leases, an increase from a $700,000 funding commitment announced in December 2011 for a 12-Well Drilling Program (500 – 600 ft wells) bringing the funding commitment to $2,150,000.
Andrew V. Reid, Chairman and Co-CEO of Treaty Energy Corporation, stated, “We at Treaty Energy are very excited about being able to file our 1st quarter results with the SEC in such a short time following the extreme delays that occurred in the filing of our Form 10-K for 2011. We are very pleased to be current in all of our SEC filings. Treaty management is instituting drastic changes regarding our internal controls in order to facilitate timely filings in the future. We have experienced tremendous growth during the last 3 quarters and have struggled to manage all the activities as needed.”
Mr. Reid added, “We have expanded our accounting department by bringing on an outside firm to handle some of the additional duties, so that we may draw from multiple levels of experienced individuals. We have also engaged a Texas Rail Road Commission (RRC) consulting firm that is charged with guiding us through the regulatory maze to allow our team to focus more on drilling and workovers on our Texas leases to accelerate oil production.”
“Going forward, everyone at Treaty is very excited about the future,” said Mr. Reid. “In the last two years we have been able to acquire over 2,200 acres of Oil and Gas leases in Texas with tremendous new drilling opportunities. And, we have built, out of necessity, our own drilling company that is capable of handling the bulk of our development and exploration activities in Texas and Belize.”
In closing comments Mr. Reid indicated, “Treaty has a total of 3,400,000 acres of Oil and Gas concessions in Belize available for exploration. We have begun preparations to drill on our McComas Lease in Taylor County, Texas, and will report as we produce results. We have three additional permits in Texas that we expect to begin drilling operations on in the coming weeks. We are in the process of re-entering our San Juan #2 well in Belize and wireline logging of this well could be completed in days.. Once we have results, approved by the Government of Belize, we will be releasing news. Once San Juan #2 is completed we will move to San Juan # 1 and begin our next drilling operation in Belize.”
The complete Form 10-Q filing for the period ended March 31, 2012 can be viewed at the following link: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8686758
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