By
By: AllPennyStocks.com
At a time when the petroleum industry is nursing some public relations wounds,
it’s refreshing to learn that small operators are finding more of the precious
substance and adding it to the world’s supply – rather than see it washing up on
shore and posing a threat to the environment.
Such was the case in the second week of June when Houston-based Treaty Energy
Corporation (OTCBB:TECO) came out with reports of a prolific “gusher” at one of
its oil fields in Tennessee.
TECO acquired leases on five oil and gas properties in Pickett County in
mid-April, and told the world its first attempts to drill was considered a major
success. The leases encompass 246 acres and included two shut in wells, the
first of which was re-entered on June 8, with these most positive results –
producing 30 barrels in just three hours. TECO has also hinted that there is a
second "shut in" well that will likely be penetrated soon.
TECO goes about its business of developing and producing oil and natural gas by
acquiring oil and gas leases which have "proven but undeveloped reserves",
enabling TECO to develop and produce oil and natural gas with tremendously
decreased risk, cost and time involved in traditional exploration. By taking the
“value-added” approach and staying away from the huge costs and risks of
exploration, TECO purports to build a production base and drillable proven
reserves that translate to growth of stock value.
For its immediate future, TECO plans to acquire and develop wells in Louisiana
and Kansas, as well as other properties in Tennessee and other sites under
evaluation that meet the company’s strategic plan for growth. Fixing goals such
as that, TECO believes, sets it apart.
The company wears its core value of environmental responsibility on its
collective sleeve, telling investors and potential customers alike it plans to
follow development and operations plans that utilize equipment and techniques
that will produce every recoverable barrel or cubic foot of gas possible from
its project properties, and to stop common practices that leave large volumes of
reserves as unrecoverable and wasted.
Company literature declares TECO’s intention “to making the smallest footprint
possible in all our project proceedings and operations,” exactly the kind of
message folks who care about the industry and environment need to hear at a time
like this.
It appears the good tidings from Pickett County were just what the market for
small-cap stocks like TECO needed to hear; volume for the stock exploded past
the 14-million mark by noon on June 10 – only two days later – with prices
soaring by as much as 75% in just one morning to 2.1 cents a share. The 52-week
peak for TECO was reached last October around three cents, after a year-long
trough of two-10ths of a cent in February. Given the good fortune emerging out
of the “Volunteer State”, and a lessening of the irritants plaguing the market
in general, things could be “gushing” upward for this stock – and soon.
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