Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H gas well. He pointed to Pioneer's $7.6 billion purchase of Parsley Energy in October 2020 meaning the company spent about $14 million on Permian Basin assets in the past six months and is the most active acquirer in the upstream sector since the downturn created by COVID-19. Thankfully, the bulls took control of TRCH stock and ran it up in January. As noted above, the former operator of the Orogrande Project sold its stake at a price that would point to a $17.5 million value for Torchlight's current stake. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. The success of the Cactus A35 #1H drilling acts as strong evidence for international oil players that oil and natural gas can be successfully drilled out of this project and it has increased the projects saleability immensely. Rextag database of energy infrastructure assets. That's your value per acre. 2023 Hart Energy. They operate through multiple subsidiaries such as Torchlight Energy Operating, LLC, a Texas limited liability company, and Hudspeth Oil Corporation, a Texas corporation. The average price of land listings and ranches for sale here is $96,515. As a result of the sudden progress and M&A hopes, Torchlight's stock has appreciated 200% year-to-date, closing at $1.59 per share on April 23, 2019. Engineers warn the new wells could produce as much as 50% less in some circumstances. Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. Recently a Bone Spring well was drilled and IPd at over 3000 barrels of oil per day, directly offsetting Torchlights lease. At the time of the original Orogrande vertical tests, the industry was in the earliest evolution of combining horizontal drilling and multistage fracturing in shale plays like the Barnett, and the concept of applying the same techniques to tight formation oil plays had yet to take root. Click Manage settings for more information and to manage your choices. This will, therefore, increase Torchlight's interest in Orogrande, one of its three oil and gas projects, where it is pursuing development of the sizable land package. . Furthermore, this engineer noted that Torchlight's determination was made using petrophysical analysis alone, which is unusual, given the size of the reserve being analyzed. Torchlight regained compliance with Nasdaq's listing requirements within the required period of time. "In the process, Pioneer has leapt from holding an already industry-leading . We, Yahoo, are part of the Yahoo family of brands. Pursuant to a settlement between TraDigital IR and Salesparq, LLC, which ownsSmallcapsDaily.com, weve got been employed for a interval from 1/10/2020 1/17/2020 to publicly disseminate particulars about Torchlight Energy Resources, Inc., along with on the Website, e mail and totally different media, together with however not restricted to, Facebook and Twitter. I believe the $17.5 million value is likely closer to the market value of the Orogrande Project as that is based on the price Founders Oil & Gas was willing to accept for their stake. Based on the formula mentioned in Metamaterial's circular, Torchlight may issue approximately 403 million shares to exchange for Metamaterial's shares, which would imply around 3.3 Torchlight shares for each Metamaterial share. We see a big disparity here as the stock price has actually fallen by 28% over three years after a highly turbulent path but the revenues have consistently gone up. Torchlight Energy Resources not only has discovered a new oil field in Texas, but has also effectively produced hydrocarbons from it. NOG Acquires Northern Delaware/Permian Assets for $157 Million. //www.accesswire.com . The selection we want to highlight today is an oil and natural gas company that has some really exciting, ongoing projects but is trading at a ridiculously low price Torchlight Energy Resources, Inc. (NASDAQ:TRCH). So that price per barrel is way down the line if even possible. ROTH rates the company a Buy. Added to that would be any proceeds from an Orogrande Basin sale. Subscribe to get unmatched coverage of the oil and gas industrys entire landscape. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . April 05, 2017 08:45 ET | Source: Streetwise Reports. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. The initial test was earmarked as a $1.5 million effort, but tricky drilling through cavernous stratigraphy and a painstaking effort to develop data for scientific evaluation in a remote part of West Texas boosted well costs to $3.5 million. Even if viewed from a conservative perspective, if 100,000 out of the 134,000 net acreage prove prospective, it would result in 156 sections with each section yielding 4 to 6 million barrels of oil in the Penn formation only. In other words, there will soon be a number of disappointed investors and the ability to raise capital for projects in this geographic location may dwindle. Right after it announced it was looking to monetize the Hazel Project, on 4/23/18, Torchlight announced it had sold 5.75M shares of common stock at $1.15 per share. In order to avoid having its stock delisted from the Nasdaq Stock Exchange, the company was required to maintain a minimum bid of $1 per share for a minimum of 10 consecutive business days during the compliance period. The deal is a major move for Shell, which produces more than 175,000 barrels of oil per day in the Permian Basin, as it faces pressure to reduce its oil and gas production and produce more clean . Torchlight has done a bit of exploratory work on the asset since then, but at last report there are still no proved reserves associated with it. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. The shales, frequently gypsiferous . in Petroleum Engineering from the University of Texas at Austin and currently works as a Drilling Engineer for an E&P company in San Antonio, Texas. . Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. SAN FRANCISCO, CA-- (Marketwired . The value of the special dividend is estimated at $0.45 million for the Winkler Project sale plus $12.4 million for the Hazel Project sale if that goes through. 21.3 Acres W/ Mineral Rights! Carolyn, A lessor has zero control of the minerals leased. The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. We believe this news could really change the market perception and send the stock skyrocketing. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. of oil per day and 110,000 cubic feet of gas per day Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. We have an over 80% success rate, see our reports at whitediamondresearch.com. Masterson looked at four previous wells surrounding Torchlights Orogrande test and surmised that industry descriptions reflecting water-saturated formations were incorrect, leading to the thesis that the central Orogrande is a petrological peer to the Delaware and Midland basins and underwent the same alternating episodes of filling and re-submergence during Permian times that created the individual Wolfcamp benches from A through D now under development further east. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. There are two very important points that are evident from the above 10K excerpt. Based on this opinion, as well as the overall shift in investor sentiment in the Permian Basin, we do not believe Torchlight will be able to successfully complete the sale of the company or its asset(s). Collectively, the companies that made projections are on track to pump nearly 10% less oil and gas than they forecast for those areas, according to the analysis of data from Rystad Energy AS, an energy consulting firm. Torchlight Energy Resources Inc. ( Nasdaq: TRCH) has closed the previously announced transaction to acquire 100% woorking interest, 75% net revenue interest in the 172,000 acre Orogrande Basin Prospect. Please disable your ad-blocker and refresh. Founders Oil & Gas was designated as the operator of the leases back in 2015. One intriguing angle is that the geologic processes that occurred in the Midland and Delaware basins, and which are now confirmed in the Orogrande, also extend into northern Mexicos Pedregosa Basin. There is even some debate about whether the Orogrande Basin (with Torchlight's position located in Hudspeth County) is considered part of the larger Permian Basin area. Torchlight offers 168,000 contiguous acres in the heart of the Orogrande and has executed a five-year drilling lease with a second five-year option with the state of Texas University Land System. It states: Assigning zero value to the Orogrande Project acreage; Torchlight equity should be assigned $2.50-3.00 in immediate-term value. This would be the result of the . Any Yes No Irrigated? Following his time at Energy & Engine, Mr. Wurtele served as the CFO of Xtreme Oil & Gas, Inc. Xtreme Oil & Gas, Inc. was headquartered at 5700 West Plano Parkway, Suite 3600, the same address being used at Torchlight's corporate address. Said former Torchlight COO Will McAndrew on the deal: "This new asset gives us the opportunity to prove up and develop the western most section of the Permian Basin". However, analysts are expecting to range from anywhere between $1 per share and $20 per share. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. Complete this form to receive a Free copy of our Research on . Looking for more investing ideas like this one? with many not being able to survive the fallout. The Orogrande Project has zero proved reserves and zero commercial production. Our primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres we hold in the Orogrande Basin in West Texas in Hudspeth County, Texas. Orogrande Basin Update. latest information I found, but if accurate it still points to Metamaterial's shares being significantly cheaper than Torchlight's shares if one wanted to invest in the new company. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. Especially when all the infrastructure is already built. Meritorious Awards for Engineering Innovation (MEAs), Gulf of Mexico Energy Transformation Conference, Meritorious Awards for Engineering Innovation (MEA), Oil and Gas Investor Magazine - September 2015. Northern Oil and Gas, Inc. Alpha Energy Partners. The company's entire perceived value is based on possible oil in its Orogrande Project. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 Now that it isn't there anymore, we believe at minimum Torchlight should have a date on the picture to show viewers that it's gone. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. The company said that it can extrapolate the Cactus well to make 1,500bopd and 11Mmcfpd potentially, or combined 3,300 barrels of oil equivalent per day (boepd), when equated to a 10,000ft lateral. I am not receiving compensation for it (other than from Seeking Alpha). On 4/11/19, the company issued a press release announcing the results of its new third party reserve estimate for Orogrande. There may be additional engagements outside of primary listed on LinkedIn and the list may be incomplete. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Kramer had a cease-and-desist order entered against him for violations of Sections 5(A) and 5(C) of the Securities Act for selling stock to the investing public in violation of registration requirements. This would result in a value of $0.62 per share for the oil and gas assets. Permian Basin is the only . Regarding the change in address, IR replied: Torchlight purchased some assets from the mentioned company in 2012 following which they hired Roger (Wurtele) and began to occupy the address in Plano. This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. If you do the math on that it lands somewhere around $750m barrels total. I was doing some math last night. Using TRCH's stock price of $3.74 on 8/7/14, that equates to a total of $3.35M, or $19.47 per acre. The Company has recently been in the news for striking oil in its largest project in Orogrande and the potential amount of the oil extracted could be as much as 3.678 billion barrels. Ready to build zoned SR-43 (single family residential) lot. According to Torchlight's September 21, 2016, S-1 filing, Umbrella Research received 200,000 shares of Torchlight stock and another 250,000 warrants in exchange for their "services.". Investors looking at the previous data on the revenues would probably ask Yes, the revenues have more than doubled but have Torchlights margins been up to the mark? The answer is Yes. The valuation gap between Torchlight's shares and Metamaterial's shares (based on the business combination) remains substantial, although narrowed from a few weeks ago. Torchlight is currently running low on cash and living off credit. Prior to his time at Torchlight, Mr. Wurtele served as the CFO of Xtreme Oil & Gas, Inc. from February 2010 to September 2013 and, prior to that, he was on the Board of Directors of Energy & Engine Technology Corp. Interestingly enough, Energy & Engine Corp. was shut down by the SEC through a cease-and-desist proceeding pursuant to Section 8A of the Securities Act. I have no business relationship with any company whose stock is mentioned in this article. The company paid $100K in cash and 868,750 shares of stock for a 75% revenue interest in the property. status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages A&D Transactions Track A&D/M&A transactions by: buyer, seller, deal value . If you have an ad-blocker enabled you may be blocked from proceeding. Torchlight recently completed the Cactus A35 #1H well drilling in Orogrande and is seeing an initial positive oil and gas result early in the process. Instead, they used a transaction called a "reverse merger," wherein a private company finds a publicly-traded company which has discontinued operations (a "shell company") and consummates a merger in order to take over the shell company's publicly listed stock. . Please. 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orogrande basin value per acre