Treaty Energy Drilling, a wholly owned subsidiary of Treaty Energy Corporation, has secured and signed a $3,500,000 500 well drilling contract in Louisiana.
All of the wells in the contract are considered shallow vertical drills and will be approximately 475ft. in depth. Drilling is expected to begin on November 6, 2013 and at least thirty wells are expected to be completed by 31 January, 2014.
Treaty Energy Drilling plans to use its Failing 1500 CF Mounted Drilling rig to drill the wells. The drilling rig is currently being retooled and upgraded before starting the job to ensure a quick drilling time.
Treaty Energy chairman and CEO Andrew Reid said, "When the Company initially started Treaty Energy Drilling, the Company believed that it would be more cost effective to drill its own wells."
"However looking at financials earlier this year, the Company decided that the best course of action would be to use the experience of Treaty Energy Drilling to drill wells under contract to third parties to diversify the revenue stream and bring in additional capital to the Company," Reid added.
