OilVoice - Treaty Energy to Close on Two Oil and Gas Acquisitions

Treaty Energy to Close on Two Oil and Gas Acquisitions

Saturday, November 14, 2009

Treaty Energy Corporation is acquiring a 70% net working interest in an oil and gas lease in Morgan County, Tennessee. This lease interest is being acquired at a purchase price of $260,000 from Green Light Energy LLC with whom the company has several other projects moving toward completion.

This new lease has four wells that are currently being re-entered after several months of being shut in. Production is projected to be 8 to 10 bbl per day per well. The seller is guaranteeing Treaty Energy a minimum of 4 bbl per day per well net for 12 months from the time the wells are fully reworked.

The lender for this acquisition and the planned Converse Louisiana acquisition that was announced on October 29, 2009, is Midwest Capital Investments LLC. The financial arrangements are essentially the same for both transactions and were arranged by Dan Olson, Treaty Energy’s newest board member.

Both of these acquisitions are in legal for the finalization of documents and will close together at Treaty Energy headquarters in Houston during the week of November 16, 2009.

In other news, all due diligence has been satisfactorily completed on the Kansas-based oil and gas acquisition that was announced on October 8, 2009. The closing is currently on schedule and expected to occur in mid to late December 2009.

Review all our latest Acquisitions and Mergers news.