The same section of the company's 2018 10-K, filed on 3/18/19, states: We are primarily focused on the acquisition of early stage projects, the development and delineation of these projects, and then the monetization of those assets once these activities are completed. Shares even hit the $2 target on . Torchlight's Orogrande Project (Hudspeth County) acreage had no proved reserves at last report, and Hudspeth County had no reported production at last report either. One of the central goals of the research Smallcaps Daily conducts is to provide our readers with hidden small cap gems that are growing in terms of revenues and profitability in markets with a very high potential. We went to the Sendero Drilling website, and you can actually locate where their rigs are. Subscribe to get unmatched coverage of the oil and gas industrys entire landscape. With the play consisting of 134,000 acres . 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. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. Rextag database of energy infrastructure assets. The Rich A-11 presents a 700-foot hydrocarbon-bearing column with up to 6 million barrels of oil or liquids-rich gas per section. . Some companies are off track by more than 50% in certain regions. Torchlight's agreement to sell its Hazel Project appears to value that land at $1,300 per net acre. It appears that he has employed a similar strategy at Torchlight. 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. 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. . There are laws that keep them from lying, that's why they call them 'possible', but when it comes to rocks a mile under the ground, it's easy to say you see things that are promising. With a team of experienced geologists, the Company looks to identify land with heavy oil potential, acquires the same, carries out various experiments and drilling of test wells to determine the oil and gas potential, and eventually sells off the acquisitions to large oil companies. Add up the value of all the parcels you want to include in your average, if there's more than one. 21.3 Acres W/ Mineral Rights! with many not being able to survive the fallout. Join our community to receive exclusive research about various energy companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. 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. 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's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. Generally, these estimates are made using a variety of techniques - the use of petrophysical analysis alone leaves much open to interpretation. Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. Shale development is just beginning in the Delaware. 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. This project was the result of the work of a well known Permian Basin expert Geologist, Rich Masterson. PLANO, TX / ACCESSWIRE / April 6, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH) ("Torchlight" or the "Company"), today provided an operational update on its Orogrande Basin Project and announced compliance with Texas Governor Greg Abbott's Stay-At-Home Order. The Orogrande Basin Project & Its Big Breakthrough. Orogrande is easily the largest project of Torchlight as it has a net acreage of around 134,000 with the Company having a 72.5% working interest in the project. Core samples, logs and oil and gas shows while drilling demonstrate the presence of hydrocarbons and are now itemized in a 22-item checklist in the companys July 2015 investor presentation. If you have an ad-blocker enabled you may be blocked from proceeding. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. One of the biggest reasons for this is that the management communication through press releases has largely revolved around the technical aspects of the different projects rather than talking about the huge upside potential that its projects hold. By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. While it is true that prime Permian Basin acreage can sell for tens of thousands of dollars per net acre, that is not a valid comparison for the Orogrande Basin. Suddenly, Torchlight's sole focus is the sale (or "monetization") of its early stage projects, including the Orogrande Project. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. We are currently offering a free two-week trial to Distressed Value Investing. We have an over 80% success rate, see our reports at whitediamondresearch.com. Such efforts by the management to improve the efficiency of extraction will go a long way in reducing the indirect costs and improving the profitability and shareholder value in the long term. Yeso formation of Manzano group. Torchlight is currently running low on cash and living off credit. While he did graduate with a B.S. Browse Orogrande, New Mexico properties for sale on Land.com. 2023 Hart Energy. Another Texas operator sought to increase is Permian Basin presence as Fort Worth-based FireBird Energy bought about 21,000 acres in the eastern Midland sub-basin in West Texas from Chevron USA. This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Torchlight's stock closed at $0.80 on November 7, 2018, and reached its low of $0.53 on December 31, 2018. . It doesnt end here. That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. . The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. The shales, frequently gypsiferous . @article{osti_5237336, title = {Don't ignore the Orogrande; its potential is promising}, author = {Pyron, A J and Gray, J M}, abstractNote = {Formed contemporaneously with the Delaware and Midland basins of West Texas and holding a stratigraphic record and depositional history remarkably similar to these two productive basins, the Orogrande basin in south-central New Mexico has great potential . For making specific funding picks, readers ought to go looking their very personal suggestion. It could go either way at this point. . Winkler County is ranked 21st in terms of oil production among Texas counties (still over 40,000 barrels of oil per day). Calvetti Ferguson has also had legal troubles in the past. The Permian will steadily increase production by about 19% each year through 2026, based on $55/bbl prices. This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. Right now, the average price for a loaf of bread is, approximately, $1.87. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Most people have it growing at about [a rate of] 800,000 barrels per year. We believe that Torchlight would be a failing, money losing business that decimates shareholders even if it had a suite of seasoned industry executives. The other good point is that these institutions have held on and this is evident from the fact that the institutional holding actually went up even with spike in price around March 2019. Engineers warn the new wells could produce as much as 50% less in some circumstances. Browse LandWatch's Texas land for sale page to find more rural . In 2018 a Santa Fe firm that places bids for anonymous investors bid more than $95,000 per acre for a tract of U.S. government land on the New Mexico side of the Basin. . Orogrande Basin Update. I have no business relationship with any company whose stock is mentioned in this article. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. 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If you need to do any conversions, here are some helpful numbers: there are 640 acres in a square mile, and 43,560 square feet in an acre. 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. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. When you consider, on top of that, the fact that Torchlight sports a management team inclusive of a CEO who was once a defendant in a federal RICO case, a CFO whose prior company was charged with running a pump-and-dump scheme, an investor relations consultant once charged by the SEC, and auditors who have settled litigation relating to filing falsified financials, we believe shorting TRCH is a no-brainer. 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