Torchlight Energy is considering all options for the prospect, including field-level investment by a partner or an outright sale of the project, Chief Executive . The Orogrande Basin Project & Its Big Breakthrough. The promoter is often compensated in the form of purportedly unrestricted shares of the company's common stock, which the promoter sells after its touting has attracted investor interest in the company. As the article shows, in the past, some investors had the belief that the Hazel Project had value, but the Orogrande Project might be worthless. The well appears to be an analog to the Central Midland Basin Platform, although the Orogrande test is shallower and normally pressured. 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. I believe this gives a more accurate picture of the potential value of that asset than a comparison to prime Permian Basin acreage with tons of proved reserves and associated production. One piece of machinery that the company shows quite a bit in the Orogrande Project section, is a rig with the name: "Sendero Rig 11" on it. Torchlight's agreement to sell its Hazel Project appears to value that land at $1,300 per net acre. Torchlight's price remains quite high by this measure, although some of the gap has closed. Torchlight Energy has a net revenue (NRI) of 75%. Information on assets, buyers and sellers, deal values, and more. We know they are the same entity as a result of the disclosure below, which names Umbrella "analysts" Dmitriy Shapiro and Joe Giamichael as the controllers of voting and investment power for Catalytic. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. Today, over one year later, Torchlight has not been successful in selling the Hazel Project. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 These top counties produce hundreds of thousands of barrels of oil per day. the court entered a default judgment against him in September 2012. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. Despite having only three years of experience in the field, he has worked in drilling, production and reservoirs throughout south west Texas, most notably contributing to the Eagle Ford Shale Project, which is currently the most active shale play in the world with over 100 active rigs. It is also in a county that doesn't rank in the top 200 oil-producing counties in Texas. Subscribe for free to our newsletters for the latest energy news. 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Shale development is just beginning in the Delaware. From the administrative proceeding: a common abuse found among certain small publicly held companies. Torchlight's Winkler Project sale involves a price of approximately $3,333 per net acre. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. $23,529. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. . Because of this, Permian Basin mineral rights have a higher value, ranging from $7,000 to $58,000 per net mineral acre. The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. This would be a similar maneuver to what they did when they raised funds while they dangled the carrot in front of investors saying they would monetize their Hazel Project, which has not happened. On the other hand, Hudspeth County doesn't even rank in the top 200 Texas counties in terms of oil or condensate production. I have no business relationship with any company whose stock is mentioned in this article. 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. The Orogrande Project has zero proved reserves and zero commercial production. TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much higher than today. That would depend on the results from the Flying B Ranch #4H well, although the overall commodity price environment is more favorable to the sale now. Has House? Prices for top E&P stocks and commodities. The average price of U.S. shale acreage has fallen by more than 70% in two years from $17,000 per acre in 2018 to $5,000 per acre in 2020, according to Norwegian energy research firm Rystad. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. Firstly, it shows that the Companys revenues doubled on a year-on-year basis which is an important fact that the market has not factored in as well as it should have. When the company won't be able to sell the Orogrande Project, the same way that it isn't able to sell its Hazel Project, investors will see the full picture. Get them exclusively at Distressed Value Investing. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. You can do the same for the tax liability. We specialize in the technology and healthcare sectors. New information updated about the Orogrande Basin. 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. On the other hand, the USGS does include Hudspeth County in its definition of the Permian Basin. After 2008, Permian operators began horizontally exploring Permian Wolfcamp benches from A to D, the latter of which is also referred to as the late Pennsylvanian-aged Cline Shale. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). While he did graduate with a B.S. Please disable your ad-blocker and refresh. During initial measurements, the Cactus well produced a peak rate of 15 barrels of oil per day and 110 mcf of gas per day fram a comparatively small, 100-foot horizontal completion. is in the process of . Institutions have quietly accumulated the stock and it is a matter of time before the Company delivers a solid result making the stock price go through the roof. History and geology appear to be in alignment for a new tight oil play. The Orogrande Basin is a geologic province in southern New Mexico and western Texas.It includes Doa Ana, Sierra, Socorro, Lincoln, and Otero Counties in New Mexico and El Paso County, Texas. April 05, 2017 08:45 ET | Source: Streetwise Reports. So that price per barrel is way down the line if even possible. The Orogrande basin is just 1 of the TRCH assets. If those entreaties fail, Torchlight has acreage in Oklahoma, Kansas and the Texas Eagle Ford it can sell to generate funds for a completion, though the company prefers to partner with larger firms that have proven Permian horizontal completion experience. The report, prepared by Stimulation Petrophysics Consulting, estimated a reserve potential of 3.678 billion barrels in the basin - an incredible stroke of luck for a company that has never had a quarter in which it produced more than 200 barrels of oil per day. Essentially, it appears to be just a matter of time before the prospective buyer can start producing millions of barrels of oil and natural gas each year. "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. The company refers to the Orograndes multiple stratigraphic targets as WolfPenn, a hybrid term similar to Wolfberry and Wolfbone that reflect commingled production from the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring in the Delaware. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. While the Orogrande Basin could be technically considered a sub-basin of the Permian Basin, its omission from some definitions of the Permian Basin is one indication that it is a fringe area. The NASDAQ listing and additional cash on hand will improve Metamaterial's odds of achieving commercial success, but a $500 million USD market cap still seems quite elevated. . We have an over 80% success rate, see our reports at whitediamondresearch.com. 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. 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. TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much . Click Manage settings for more information and to manage your choices. 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. Mr. Moriarty's articles occasionally appear on Streetwisereports.com, as well - here is another "research" report Moriarty wrote on TRCH. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. Torchlight's management said in a recent conference call it is pursuing any of these: a joint venture, a sale of the company or a sale of all or mostly all of its Orogrande Basin assets. The Journal states: Newer shale wells drilled close to older wells are generally pumping less oil and gas than the older wells, according to early corporate results. These are the Orogrande project in Hudspeth County, Texas, the Hazel project in Sterling, Tom Green, and Irion Counties, Texas, the Winkler project in Winkler County, Texas, and Hunton wells in partnership with Husky Ventures in central Oklahoma. The company paid a total consideration of 865,000 shares of Torchlight common stock and $100,000 in cash to the seller. Torchlight Energy has an enterprise value of over $130M. Calvetti Ferguson has also had legal troubles in the past. Torchlight still appears significantly overvalued based on the percentage of the post-combination company it will own, although the valuation gap has closed a fair bit over the last few weeks. 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. 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". : //www.torchlightenergy.com/current-projects/orogrande-basin Central Midland Basin yet has not been successful in selling the Hazel Project and commercial. Any stocks mentioned, and more torchlight has not been successful in selling Hazel... Torchlight has not been successful in selling the Hazel Project appears to value that land at $ 1,300 net... 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