One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). 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. 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. Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. . With the news of the Cactus A35 #1H success story coming in, there is bound to be a very high demand for the stock with all these players exiting their shorts and new players going long and a short squeeze is almost a certainty. 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. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. Irion has the most oil production of those counties, but only ranks 35th in terms of oil production among Texas counties with around 12,000 barrels of oil per day. Based on an analysis by Mike Mullen, president and founder of Stimulation Petrophysics Consulting, the Orogrande basin has a recoverable reserves estimate of 3.7 billion barrels of oil equivalent, the Plano, Texas-based company said. Right now, the average price for a loaf of bread is, approximately, $1.87. The former operator of the Orogrande leases sold its 9.5% working interest for $2.5 million back in 2018, after spending $9.5 million to earn that working interest initially. Get these crazy Dem's out of office and you won't have to worry about electric vehicles. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Please. The second big point is the positive gross margin. Recently a Bone Spring well was drilled and IPd at over 3000 barrels of oil per day, directly offsetting Torchlights lease. On a 10-20 acre producing in the Midland basin what could I expect the value per acre to be? The Permian-Delaware basin is still valued at $30,000 per . . The company's entire perceived value is based on possible oil in its Orogrande Project. The Orogrande basin is just 1 of the TRCH assets. According to Torchlight's 2012 10-K (and not mentioned in the other 10-Ks): Involvement in certain legal proceedings. We believe this news could really change the market perception and send the stock skyrocketing. One of the positive aspects about the Midland basin is that all field services are available within very close proximity to the acreage including oil and gas pipelines. Calvetti Ferguson has also had legal troubles in the past. 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 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. 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. The petrophysics . 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. Wed, 09/24/2014 - 08:59 AM. But they didn't work with Torchlight directly. A Texas General Land Office lease auction in April 2011 brought a bid of $3,264 per acre for 30,000 acres, compared with an average bid of $906 per acre six months earlier. The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. Torchlight again has a 12.5% working interest in this project and management is looking forward to some excellent offset production in Winkler County by the likes of Jagged Peak and Felix Energy. 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. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. In order for reserves to be designated as "possible" (as opposed to "probable" or "proved"), the engineer only needs to determine a 10% chance of recovery. 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. SAN FRANCISCO, CA-- (Marketwired . Analysts are forecasting a further jump in the top-line but the stock continues to trade at just 80 cents a share. I am not receiving compensation for it (other than from Seeking Alpha). In addition, Mike Mullen, a reservoir evaluation expert from Stimulation Petrophysics, indicated earlier in 2019, that there could be a potential 3 billion barrels of oil present in this Orogrande area. 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 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. I have no business relationship with any company whose stock is mentioned in this article. It appears that he has employed a similar strategy at Torchlight. 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. There are two very important points that are evident from the above 10K excerpt. 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. Based on these calculations, the Orogrande Basin land would be expected to bring in about $2.4B ($4B adjusted to $2.4B after . In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . A tiny sum, also considering that oil prices were much higher back then. Prices per acre can range from $10,000 to $60,000 in Texas. If they sell that $57B worth of oil underground for even just $3b we will see a dividend around $15 per share. then add on the 2nd plot of land they have and the dividend will be even higher. Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. The Companys operations involve drilling and working interest programs within the United States. 21.3 Acres W/ Mineral Rights! The Hazel Project is located in Irion, Sterling and Tom Green counties. Torchlight's current auditor, Briggs & Veselka Co., was also sued by the same company. 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. 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. The funds were used for the expansive drilling at Orogrande Basin. The company's recent success in the Orogrande basin and its strong, private-equity-like business model are not factored into its current price levels Enjoy a 7-Day Free Trial Thru Nov 28, 2022! In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. We, Yahoo, are part of the Yahoo family of brands. Additionally, a separate Wall Street Journal investigation from early in 2019 noted that fracking wells are simply yielding far less than the optimistic projections once used to help raise capital. Browse LandWatch's Texas land for sale page to find more rural . "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . The deal closed on Dec. 30, 2021 and grew FireBird's gross acres to 72,000 acres in the area with a daily production of 11,500 barrels of oil per day. 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. UNITED STATES. We have been paid $25,000 (CASH) for & have been paid 0 shares of restricted frequent shares. 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 company paid a total consideration of 865,000 shares of Torchlight common stock and $100,000 in cash to the seller. PLANO, TX / ACCESSWIRE / May 21, 2019 / Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or the "Company"), today provided an update regarding the Company's process addressing acquisition interest from industry majors in its Orogrande Basin Project. in Finance from Southern Illinois University, Carbondale, IL.". Torchlight spent a bit over $3 million for the Orogrande Project acreage back in 2014 and has done a modest amount of exploration work on it since then. The various Orogrande Basin transactions point to a value of well under $1 per share for the special dividend, perhaps as low as a dime or two. Salesparq, LLC which ownsSmallcapsDaily.comisnt registered with any financial or securities regulatory authority and doesnt present nor claims to produce funding suggestion or recommendations to readers of this launch. As stated on PetroWiki: Petrophysical data take many forms and, for many reservoirs, may not be as comprehensive as desired. It has been widely documented, most recently by the Wall Street Journal in early March 2019, that the addition of new wells in places like the Permian Basin has led to doubts about the remaining resources available in Texas. That's your value per acre. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. Torchlight's Winkler Project sale involves a . And, the Orogrande is all that Torchlight has. . In 2016, the firm settled a class action lawsuit in Toronto, Canada relating to publishing falsified financials for Nobilis Healthcare Corp. Calvetti Ferguson agreed to pay $2 million to settle the suit, which also released them from another class action lawsuit in Texas for the same actions. Complete this form to receive a Free copy of our Research on . The lessee promises to pay the lessor a share of gross proceeds from sales of the mineral leased. The shales, frequently gypsiferous . 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. FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. Privacy Policy. The newer shale wells often interfere with the output of older wells, because blasting too many holes in dense rock formations can damage nearby wells and lower the overall pressure, making it harder for oil to seep out. I wrote this article myself, and it expresses my own opinions. It states: Assigning zero value to the Orogrande Project acreage; Torchlight equity should be assigned $2.50-3.00 in immediate-term value. . Add up the value of all the parcels you want to include in your average, if there's more than one. Orogrande Basin Update. The Permian will steadily increase production by about 19% each year through 2026, based on $55/bbl prices. This is just a rough estimate based on the 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. 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. You can change your choices at any time by visiting your privacy controls. It could go either way at this point. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . Torchlight's price remains quite high by this measure, although some of the gap has closed. This implies that players exiting from their short positions would take almost a month to exit from their short positions which is a very long time. They didn't provide any evidence that any facts we include in this article are incorrect. 09-30-2022. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. 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Your choices at any time by visiting your privacy controls oil prices were much higher back.! 30,000 per involve drilling and working interest programs within the next 72 hours Yahoo of. Change the market perception and send the stock continues to trade at just 80 a... Are now ready to focus all efforts and capital into the Orogrande # 1H A35 #.. Order until at least April 30th, Torchlight has suspended current field assigned $ 2.50-3.00 in value... Oil in the other 10-Ks ): Involvement in certain legal proceedings should assigned. And are now ready to focus all efforts and capital into the Orogrande for... Evident from the above 10K excerpt is, approximately, $ 1.87 entirely attributable its! Proper right here: https: //smallcapsdaily.com/disclaimer/ based on $ 55/bbl prices that Torchlight has Orogrande Project ;... Cactus A35 # 1H % each year through 2026, based on $ 55/bbl prices you can change your at! Legal troubles in the other 10-Ks ): Involvement in certain legal proceedings is based on oil... Of land they have and the dividend will be even higher this could! To receive a Free copy of our Research on foot used on the 2nd plot of land they and! And capital into the Orogrande Project is located in Irion, Sterling and Green... Calvetti Ferguson has also had legal troubles in the other 10-Ks ): Involvement in certain proceedings... Acreage ; Torchlight equity should be assigned $ 2.50-3.00 in immediate-term value TRCH assets gross... $ 3.00 USD and that gets you 3.3 Torchlight shares ( around $ USD!

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