The reasons for this are multifold. In April 2020, REI announced that it had entered into a purchase and sale agreement on its Delaware Basin Acreage consisting of approximately 20,000 net acres with a sale price of $31.5 million. 3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. 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. We see a drop in the earnings per share in early 2019 but the number climbed back up during the course of the following 12 months. 4) The article does not constitute investment advice. "We believe numerous major oil companies and large capitalization E&P companies will express interest," he added. However, it’s also notable how much equity was lost and how relative debt ratios skyrocketed. There are two very important points that are evident from the above 10K excerpt. The well came online at more than 16 mmcfd and produced 0.4 Bcf in the first 30 days online. Grove Inc (GRVI): Untouchable Leader Within the CBD-Based Industry? But the best deals are found at the bottom when even angels fear to tread and don't even think about investing. 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. Torchlight's Orogrande Test Well Results Confirm Potential. Effective April 4, 2016, TEI acquired from MPC a 66.66% working interest in approximately 12,000 acres in the Midland Basin in exchange for 1,500,000 warrants to purchase shares of our common stock with an exercise price of $1.00 for five years and a back-in after payout of a 25% working interest to MPC. Further questions please contact privacy@smallcapsdaily.com, Efficient, coordinated care is key to patients’ survival during cardiovascular events, Neovasc to Participate in 2021 Benzinga Healthcare Small Cap Conference, Medolife Rx Launches Ad Campaign With Tony Hawk, Sees Immediate Positive Results, Naturally occurring protein to block inflammatory response improved stroke recovery in mice, Concierge Technologies Reports Fiscal 2021 Financial Results, Arthur C. Clarke’s Venus Prime Sci-Fi Book Series Sets Emmy-Nominated Writing Duo Hill and Cormican for TV Adaptation, Significantly Improved Safety Profile and Metabolism of Remdesivir Observed Due to Encapsulation in NanoViricides Drug Candidate Enabling Potential Highly Effective Pan-Coronavirus Antiviral Drug, Aemetis CEO to Present on Net Zero Future Panel at the Advanced Biofuels Leadership Conference Oct 28th in San Francisco, Alfi: An Early Bet on the Future of Advertising, AdvanceTC Receives Orders For 4,000 Phones To Be Delivered In December 2021. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Within the last twelve months, ROTH has managed or co-managed a public offering for Torchlight Energy Resources, Inc. ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. While marketing, Torchlight will continue to analyze and interpret the geological and geophysical data but will not conduct any drilling. News late last week was met with no rise in West Texas Intermediate pricing. Found inside – Page 1542Property is the Hatasa mine , having an 86 - h . p . installation ... area 160 acres , adjoining the Black Mountain Mining & Milling Co. , in Gold Basin ... In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . In addition, the drop in equity values push debt ratios higher, thus potentially triggering bank covenants. Found inside – Page 34503 origi Be it enacted by the legislature of the State of Nebraska : nated in the ... secretary of state of South Dakota and keeper 7,213,490 acres of land ... Disclosures from ROTH Capital Partners, Torchlight Energy Resources Inc., Company Note, April 2, 2019. Found inside – Page 317The vein is said to be about 6 ft . in width , carrying about $ 75 value . ... This district is located south of Yellow Pine basin . Shoshoni County . The company itself, in their investor presentation, trots out a couple estimates for the value of the Orogrande Basin — they say that the company's current market cap of $82 million, even ignoring any value from Hazel and Winkler, means you're effectively buying Orogrande at $820 per acre (back in March it was a market cap of $108 million . This dynamic has been exacerbated by the market’s focus on cash flows in priority to reserves in recent years. Value per acre is another metric that ranges based on numerous factors. Permian pure-play operator Parsley Energy Inc. said it will acquire more than 22,900 net acres of bolt-on acreage in the Midland and Southern Delaware Basins for $359 million in cash. However, when it comes to undeveloped reserves the costs are much higher. Found inside – Page 254Later the Wyoming and and a half miles northeast of Carr's ranch , in value per car samples $ 25.67 per ton . heaviest in mineral they had in the ore bin . proven producing, proven undeveloped, probable, and possible reserves and raw acreage. More:Heinrich seeks federal funds for states in transition away from oil and gas reliance The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Torchlight Energy Resources. Back then the price of oil was collapsing to an eventual low of $26 a barrel in February of 2016. Most Permian deals this year have been concluded at between $7,000 and $12,000 per acre, said Andrew Dittmar, an M&A analyst at energy researcher Enverus. Torchlight is prepping to frac its University Founders A25 #1H well in the Orogrande project. He was also responsible for the origination of the Winkler County project which is relatively smaller in size (around 1100 gross acres). Founded by the same team that brought you Streetwise Reports. This rare book was originally published in 1968 by the State of Oregon Department of Geology and Mineral Resources and is now back in print from Miningbooks.com. She or members of her household own securities of the following companies mentioned in the article: None. Consider the costs to produce an existing barrel of oil. Found inside – Page 667type is nearly continuous along the south side of the area . ... adjoining Oro Grande consist of stony old valley - filling deposits which have been partly ... But the best deals are found at the bottom when even angels fear to tread and don't even think about investing. However, they would be wrong. It’s also notable that debt ratios for most companies were between 30% - 40%, a reasonable historical range. Potential motivations vary in these deals ranging from bankruptcy to prior strategy commitments. One other note – the oil market is not the only energy sector impacted. Found inside – Page 341cases cars new depth , demonstrating the value of the territory . ... from the Salmon river to Basin , Idaho , and will run within few miles of Contact . A Research Analyst and/or a member of the Analyst's household own(s) debt or equity securities of Torchlight Energy Resources, Inc. stock. Winkler Project: 1,080 acres in the Delaware Basin; contains six prospective benches or "stacked pay zones," where as many as 20 long laterals can be drilled. Median results from those groups and from the entire sample as of March 31, 2020. Investors had already been pulling valuations down as their standard tilted more towards shorter term returns as opposed to longer term reserves. To generate some potential acquirers or joint venture partners, Torchlight will market itself, initially circulate an initial document to major oil entities and large exploration and production (E&P) companies. This publication discusses several theoretical aspects important to the understanding, planning and monitoring of AR and ASR schemes and presents a selected number of examples illustrating the usefulness of isotopes and other tracers. 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. Those reserves represent the optionality, expectations, and hopes of an investor for a brighter market tomorrow. A tiny sum, also considering that oil prices were much higher back then. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Torchlight Energy Resources, a company mentioned in this article. The Upper Pennsylvanian Silt (WolfPenn), a new field discovery made by Torchlight in its Orogrande Basin Project, is a hydrocarbon rich formation with over 600 feet of thickness. "There's even more acreage now that we think is underexplored, and a lot of this coming up this year may be underexplored," DeFelice commented. 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. The highlights of Pan Orient Energy's third quarter are presented in a Mackie Research Capital Corp. report. Effective April 4, 2016, TEI acquired from MPC a 66.66% working interest in approximately 12,000 acres in the Midland Basin in exchange for 1,500,000 warrants to purchase shares of our common stock with an exercise price of $1.00 for five years and a back-in after payout of a 25% working interest to MPC. Frac ops will commence on April 23. In the top two areas in which your firm is active: What WTI oil price does your firm need to cover ... [+] operating expenses for existing wells? 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. Thus, we may not even be at the nadir of the market shock. This Basin has nearly 160 sections. Has House? Even in the most efficient areas of Texas, oil prices need to be at least $46 per barrel to profitably drill a new well. Found inside – Page 567A Manual of the Copper Industry of the World. ... area 340 acres , also 40 - acre millsite , in the Ellsworth and Copper Basin ... ORO GRANDE MINES CO . As can be seen in comparison, acreage values have slunk relatively further down than price per flowing barrel metrics indicating more erosion from the bottom of a company’s reserve report. The estimated potential, based on analogous Midland Basin EUR's is 4 to 6 million barrels per section. It is negative as well. They acquired this land at $10,471 per acre. One critical fact that must be kept in mind while looking at this bottom-line data is that Torchlight is an oil and gas company that incurs varying level of direct as well as indirect costs while it is in the development phase. Enter your email address to get started. View 221 homes for sale in Sylmar, CA at a median listing price of $642,500. Secondary rationale is that tomorrow’s production, i.e. Salesparq, LLC which owns SmallcapsDaily.com isn’t registered with any financial or securities regulatory authority and doesn’t present nor claims to produce funding suggestion or recommendations to readers of this launch. The obvious rationale is that the value of today’s production could fetch the lowest relative prices seen in decades. Through these lenses, I address industry developments, economic trends, and the impact on valuation for companies operating in the Permian, Eagle Ford, Bakken, and Marcellus & Utica regions, among others. I would do $40,000 CASH! The Company’s operations involve drilling and working interest programs within the United States. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. We feel that the conversion sets a benchmark for the Orogrande which recent developments continue to improve upon. The history of the U.S. shale plays, their founders and their leaders-from rich rock, unconventional ideas and unwavering determination to a renewed world energy future. 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. The next step for Torchlight Energy's well at Hazel is flowback, which is to start next week. We have been paid $25,000 (CASH) for & have been paid “0” shares of restricted frequent shares. Changes in The company completed the Spohn Ranch 1H well with a 6,975 ft lateral and 25 fracture stages. Date announced Permian deal Value per acre (USD) Therefore, upstream producers are de-incentivized to drill new wells, leading to the value of new inventory decreasing at an even proportionally higher rate. Fifth, the Orogrande Basin is a big ass chunk of land containing 4 to 6 millions of barrels of oil per section. In comparison, Torchlight is trading now at around $1.46 per share. Found inside – Page 28The ore has an average value of $ 10 a ton , which gives the lessees a ... with a stronger foundation to hold out , is on from Orogrande to the Four Mile ... Please click here for more information. It is only a matter of time before the management starts divesting the projects which implies a huge jump in the top-line with a minimal increase in direct and indirect expenses so it seems like the Company will soon have a strong return on equity. 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. Energy Company Boosts Thailand Oil Production, Offers 'Low Risk Production Growth' Source: Streetwise Reports (11/19/2020). Found inside – Page 88Wheat yields from 30 to 60 bushels per acre , oats 40 to 90 bushels per acre ... for the mines of Newsome , Elk City , Orogrande , Buffalo Hump and Dixie . Shares of Altus Midstream Co. traded 170% higher after the firm reported Q3/20 financial results and announced plans to pay a quarterly dividend of $1.50 per share beginning in March 2021. There is an optionality value to those future reserves, also known as acreage, that bears out in the marketplace and is evidenced by transaction prices. Torchlight Energy Resources, Inc. - Project Overview •Orogrande Basin - 134,000 Acres Under Lease •Very Large Upside in Potential Hydrocarbon Resource (Recoverable) •Low Side Case 2.3 Billion Barrels •Median BTE Case of 3.7 Billion Barrels •High Side Case 5.0 Billion Barrels In connection with the transaction, MPC agreed to have its . With a total land position of 168,000 acres, if 100,000 prove prospective, the project would yield 156 sections. Any Yes No Irrigated? SmallCapsDaily.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. Prime development opportunity in Saratoga. 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. I am a Senior Vice President at Mercer Capital with more than 20 years of oil and gas industry and valuation experience both in the U.S. and internationally. Effective April 1, 2016, Torchlight Energy Inc. acquired from McCabe Petroleum Corporation, a 66.66% working interest in approximately 12,000 acres in the Midland Basin in exchange for 1,500,000 warrants to purchase our common stock with an exercise price of $1.00 for five years and a back-in after payout of a 25% working interest to the seller. Shares of Torchlight Energy Resources, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Fracking Commences at Oil & Gas Company's Texas Project Source: Streetwise Reports (10/30/2020). During the Dallas Fed’s recent survey, nearly 40% of respondents would remain solvent for less than two years if prices stayed at $40 per barrel. Enverus ESG Modeling Tool Could Help Oil And Gas Companies Up Their Game, Blue, Green… Turquoise? Compared to the rest of the world, Saudi Arabia and Russia have the lowest production costs (of which we won’t expound on the reasons why here) and thus the rawest economic ability to weather this low-price environment. Found inside – Page 8582 shaft , Railroad Commission . merce Commission by ... Coeur Quebec officials have reconsidered their ising property , although the gold values attitude . Found inside – Page 1028Parker hospital will soon be finished at cost of $ 58,000 . ... company disposes of holdings in Burro Mountain District , aggregating nearly 2,600 acres . MLS# ML81232842. Found inside – Page 15Oil Men Now Have An Eye On New Mexico Where Lease Values Jump As Wells Are ... in the Tularosa Basin , New Mexico , largely through the visit here of Edmund ... In an April 2 research note, analyst John White reported that ROTH Capital Partners raised its target price on Torchlight Energy Resources Inc. (TRCH:NASDAQ) to $2.70 per share from $1.75 after the company announced its intention to seek a strategic transaction. Property located at 14639 BIG BASIN Way, Saratoga, CA 95070 sold for $1,398,000 on Oct 18, 2012. Found inside – Page 1279I. lower mountain ranges and the plains having winters of 160 acres each 22 townships , embracing 255,862 acres lies within the basin of the Columbia River ... Keyword Property ID. 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. The injection rates were increased from 60 barrels/minute to over 80 . All Rights Reserved, This is a BETA experience. Found inside – Page 215Capital : 5,000,000 shares ; par value 10c ; all shares issued . Property : 12 interest in Umatilla Group lode claims , Orogrande dist .; Orogrande . Found inside – Page 88Wheat yields from 30 to 60 bushels per acre , oats 40 to 90 bushels per acre ... for the mines of Newsome , Elk City , Orogrande , Buffalo Hump and Dixie . 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. Each day that passes without positive indicators the state of uncertainty continues. 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. A rough estimate will work. An Eagle Ford well record was recently set by Escondido Resources in the Hawkville Field in Webb County. 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. Found inside – Page 126Estimates of prices paid by municipal and residential users in selected cities of New Mexico Initial acre - foot purchased Additional acre - foot purchased ... Streetwise Reports is registered with the U.S. Patent and Trademark Office. 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. Found inside – Page 14In addition , if successful , this process could allow development of tens of thousands of acres that are currently off limits to conventional drilling ... In fact, researchers found that the cost of recharge is cheaper than many other water supply options at $90 to 1,100 per acre-foot, or at a median cost of $390 per acre-foot, which broadly agrees with published values. 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. Torchlight Energy signed a deal with the University of Texas on the 172,000-acre Orogrande Basin in September of 2014. Its stock closed at $2.34 on Friday. It also shows up in implied public market valuations as well. All 100% Free. Torchlight Energy's peak 24-hour production rates to date stand at 15 barrels of oil per day (bopd) and 110 million cubic feet per day (Mmcfpd). Torchlight Energy, headquartered in Plano, Texas, is positioned as a junior oil and gas player with a primary spotlight on assets in. 5,000- and 10,000-foot laterals can be drilled. Of Torchlight's current 168,000-acre position in the Orogrande, the leases with University Lands cover 133,000 acres with each section representing a separate lease for the primary term. Medium Case estimate 3.7 billion recoverable barrels * 72.5% interest at 50 cents per barrel= 1.34bn+12.75m (Hazel/Winkler) =1.3527b = $9.42 per share. Oil's price decline is going to be rather short-lived, but overall, lower pricing is going to be a common occurrence going forward because the U.S. has so many reserves in the ground.