Torchlight's current auditor, Briggs & Veselka Co., was also sued by the same company. Torchlight overcame both technical and financial challenges and subsequently closed on an additional $9.8 million in funding once technical information on the well was compiled. 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, Yahoo, are part of the Yahoo family of brands. Several operators in the Permian have since mastered the technology, and these are the partners whom Torchlight is targeting to complete the Orogrande test. WELCOME TO NAADAM (About US) NAADAM (NATIONAL ASSOCIATION FOR ADVANCEMENT OF DALITS, ADIVASIS and MINORITIES) is a non-profit, non-government voluntary organisation. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Especially when all the infrastructure is already built. 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. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. I am not receiving compensation for it (other than from Seeking Alpha). Find out more about how we use your information in our privacy policy and cookie policy. Reddit and its partners use cookies and similar technologies to provide you with a better experience. $23,529. 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. The management ensured the installation of tubing and an electric submersible pump which is designed to move as much as 500 barrels of liquid each day which is significantly above what the well has been producing (around 160 to 180 barrels per day with an almost 15% load recovery). Is this happening to you frequently? 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). 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. . Prices for top E&P stocks and commodities. Please disable your ad-blocker and refresh. From a PR on 4/9/18, Torchlight states: Our mission on the Hazel Project was to prove the overall concept of the Wolfcamp horizontal development, increase the value of the acreage and exit at a higher value. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. So that price per barrel is way down the line if even possible. Torchlight's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. 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! The Company has an 80% net revenue interest in this region. The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. Torchlight Energy Resources Inc said on Tuesday it struck oil and gas at one of its development wells in the Orogrande basin in West Texas. In Arizona, the price is about . Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. You can do the same for the tax liability. Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. The former operator of the Orogrande Project sold its 9.5% working interest in the assets for $2.5 million in 2018, which gives a better idea of the potential worth of Orogrande Basin assets. the court entered a default judgment against him in September 2012. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. The deteriorating environment in the Permian Basin, combined with the company's ugly financials and continued risks associated with capital needs, makes TRCH equity and its $120M valuation a risky bet in what we believe is becoming a speculative industry. Our optimism about Torchlight is re-emphasized when we look at the evolution of the institutional ownership of the Company side-by-side along with the growth in its price. Note: We have contacted Torchlight's Investor Relations ("IR") regarding Torchlight's questionable past and have integrated their response in this article. View 11 photos, read details, and contact the seller. In the Permian . Rextag database of energy infrastructure assets. That's your value per acre. April 05, 2017 08:45 ET | Source: Streetwise Reports. In comparison, Torchlight is trading now at around $1.46 per share. $1,600. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). On June 12, 2018, Nobilis Health Corp. filed a malpractice lawsuit in Houston, Texas against Briggs & Veselka. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. 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. More:$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices This means that if there is no oil 90% of the time, then he could still be right in his "possible" designation. 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. Browse Orogrande, New Mexico properties for sale on Land.com. Is this happening to you frequently? Shares even hit the $2 target on . This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Additional disclosure: Additional disclaimer: http://whitediamondresearch.com/disclaimer/. All of this implies that Torchlight has its hands on one of the largest onshore field discoveries in decades. This high desert ranch country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape. On the company's website, it shows pictures of its primary asset - the Orogrande Project. So tantalizingly closethat's the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. 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. with many not being able to survive the fallout. The petrophysics . The company's entire perceived value is based on possible oil in its Orogrande Project. 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. Suddenly, Torchlight's sole focus is the sale (or "monetization") of its early stage projects, including the Orogrande Project. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. Indeed, this property is a gem! But in July, Plano, Texas-based Torchlight Energy Resources Inc. reported results from a comprehensive logging suite and 25 core samples out of its University Rich A-11 well, the companys 6,000-foot vertical Orogrande entrada. However, that comparison shows a lack of understanding about oil and gas assets and is not that much more valid than using Manhattan land values to value a parcel in rural Nevada just because both areas are part of the United States. This report is a good example. FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. If you have an ad-blocker enabled you may be blocked from proceeding. SECURITIES AND EXCHANGE COMMISSION. There are . There was zero reported production in December 2020 and historical production before that has been pretty minimal too. History and geology appear to be in alignment for a new tight oil play. New information updated about the Orogrande Basin. Since commencing discussions in April, Torchlight has made seven individual presentations to publicly traded industry majors and . 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". One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). Now, the Company has a short float of 7.71% with a short interest ratio as high as 30.16. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. 543 Acres M/L bordering over 25,000 Acres of Santa Fe National Forest. And this latest news is likely to put one junior oil and gas explorer on the petroleum map, making it a target for several major producers. We are short Torchlight Energy Resources, Inc. (TRCH) because we believe it is a classic pump-and-dump run by a questionable management team in our opinion, with some of the leadership having previous run-ins with securities regulators. . 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. The Permian Basin covers an area approximately 250 miles wide and 300 miles long and is composed of more than 7,000 fields (best represented in Railroad Commission of Texas production figures as districts 7C, 08, and 8A . 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. 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. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. That the Hazel Project may sell for about $ 25M '' and its!, Texas against Briggs & Veselka Co., was also sued by the same for tax... Experience to join in as a 50/50 partner to complete the test hybrid of a equity... New Mexico properties for orogrande basin value per acre on Land.com you with a better experience per barrel is down... Again that is just 1 of their two sites, i am even! Just 1 of their two sites, i am not even talking about the midland Basin.. 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