Treaty Energy Corp. (OTC: TECO) has commenced full drilling operations on the Stockton Lease in Tuscola, Texas.

On Sept. 27, the drilling rig spudded in on the Stockton #2 well. The company is employing a local drilling contractor to perform the operation. The Stockton #2 well will be drilled to the Gardner Limestone pay-zone located at an approximate depth of 4,800 feet. The well is considered an off-set well to the company's successful Mitchell #4 well.

Currently, the Stockton #2 drill is at 2,000 feet and is drilling 24 hours a day. Due to proximity and same field geology, initial production numbers and estimated production rates are expected to be similar to the Mitchell #4 well, which received an initial production rate of 61 barrels per day (bbl/d) of oil and an announced production rate of 45 to 50 bbl/d of oil.

After completion of the Stockton #2 well, the drilling rig will immediately move over to the Stockton #3 site to begin drilling operations there. The target pay-zone for the Stockton #3 is also the Gardner Limestone and is expected to have a total depth of 4,800 feet.

According to the release, drilling on the Stockton lease comes at an opportune time with the price of WTI Crude nearing all-time highs at over $100 a barrel. Initial production surges will guarantee larger profits for the Company due to this unexpected market development.

The Stockton lease project was entirely self-funded and the company sought no additional partners on the project. As a result, the company maintains its full 75% net revenue interest and a 100% working interest on the well.

The Stockton lease project is part of the company's business strategy to develop an oil field in Tuscola, Texas. To date, the company has drilled two new wells and worked over one existing well and is solidifying plans to work over and re-perforate the Stockton #1 well into the Gardner Limestone pay-zone to match the newly drilled Mitchell and Stockton wells.

"The company is thrilled to begin drilling on the Stockton lease after three months of planning and development. By opting to self-fund this well, the company is expected to dramatically increase revenues in a very short period of time especially with oil at a high price. If the drilling is successful, the company may choose to further develop and drill in the Tuscola area," Andrew Reid, Treaty CEO,