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. 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. 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. 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. 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 lessee promises to pay the lessor a share of gross proceeds from sales of the mineral leased. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. Please disable your ad-blocker and refresh. This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Before, Torchlight was looking to participate in drilling activities. 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. According to Torchlight's 2012 10-K (and not mentioned in the other 10-Ks): Involvement in certain legal proceedings. It is my understanding that this is misinformation. He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. In comparison, Torchlight is trading now at around $1.46 per share. For more information, please see our Prices for top E&P stocks and commodities. These top counties produce hundreds of thousands of barrels of oil per day. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. 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. The second big point is the positive gross margin. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). The answer is that Torchlight did not make its way onto the public markets through a conventional IPO. 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. Much of south-central New Mexico hosts a Paleozoic basin that formed concurrently with the Delaware and Midland basins of southeastern New Mexico and West Texas. Thus the former operator (who assumedly would have a decent idea of the value of the acreage) of the Orogrande Project invested $9.5 million in the project, but ended up selling its stake for $2.5 million. Keyword Property ID. Add up the value of all the parcels you want to include in your average, if there's more than one. $1,600. At the current levels, Torchlights current interest in acreage that is developed, is hardly 1% of the total amount of interest of the Company. Ready to build zoned SR-43 (single family residential) lot. 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. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. 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. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. They are a public company looking for investors. Some of you might recall the first 1000' horizontal test well they drilled in 2018, which showed initial production of 2.2 million cubic feet of natural gas per day, and had a sustained rate of 1.2 . Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. I am not receiving compensation for it (other than from Seeking Alpha). Located in Winkler County, Texas, the project includes 640 gross (67.2 net) acres. Torchlight is currently running low on cash and living off credit. Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. But they didn't work with Torchlight directly. 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. 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. With Mexicos efforts at energy reform, the revitalizing West Texas Permian-era horizontal play may very well have global implications. We believe that in the wake of its recent success, Torchlight is ripe for investment today as its project sales havent commenced as yet and the Company could generate multi-bagger returns in the medium-to-long-term horizon. Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. Pepose to its Scientific Advisory Board, Lunchtime Results Launches Lunchtime Results App, Offers Instant Access to the UK 49s Lunchtime Results, Revolutionizing Education: The Power of OpenAIs ChatGPT-3 Technology in the Classroom, Sharps Technology: A Smart Safety FDA-Cleared Syringe Manufacturer with a Significant Partnership That Is Just The Boost You Need In Your Small-Cap Portfolio, InnovaQor: The Qira Offering Can Revolutionize The Analytics Process For HCOs, InnovaQor, Inc.: Cutting-Edge Innovations In Healthcare Technology, Troika Media Group Signs a Firm Commitment for a $75 Million Senior Secured Credit Facility with a Multibillion-Dollar Institutional Investor to Fund the Acquisition of Converge Direct LLC, AgriFORCE Growing Systems: The Manna IP Acquisition Is a Step in the Right Direction, Mawson Infrastructure Group: Leading the Sustainable Charge within the Digital Asset Economy, Splash Beverage Group: A Delicious Beverage Player With A Phenomenal Growth Story In Progress. . The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. 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. The company's entire perceived value is based on possible oil in its Orogrande Project. He has a B.S. . The Orogrande basin is just 1 of the TRCH assets. It appears that he has employed a similar strategy at Torchlight. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. Indeed, this property is a gem! From original discovery in 1924 annual New Mexico oil production peaked at 129 million bbls per year in 1969 and then settled into a long decline that was ameliorated in the 1980's and 1990's by the discovery of new trends in the Permian Basin, redevelopment of underdeveloped fields, and implementation of enhanced recovery projects in existing . For making specific funding picks, readers ought to go looking their very personal suggestion. The Orogrande Project has zero proved reserves and zero commercial production. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. We specialize in the technology and healthcare sectors. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. For example, one Torchlight share is currently $2.29 USD (perhaps $2.08 USD net of the value of its oil and gas properties as discussed below). New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. Browse LandWatch's Texas land for sale page to find more rural . This required Mr. Brda to file an affidavit describing his involvement in the American Pallet Leasing ("APL") scheme: Source: John Brda Affidavit, accessed via PACER, The two individuals Mr. Brda did business with at APL were Craig Medoff and Curt Kramer. Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. Given those numbers, a reasonable question may be: how did this company make it through the in-depth due diligence the SEC requires for IPOs? The Company has an 80% net revenue interest in this region. 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. 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. What is the point of paying auditors who have a concerning history? Certainly much less value than what some social media posts estimate. 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. . It currently has interests in four oil and gas projects. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. 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. in Finance from Southern Illinois University, Carbondale, IL.". These calculations tend to mention the value of prime Permian Basin acreage when discussing Torchlight's Orogrande Basin acreage. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. 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). The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. Torchlight Energy Resources Inc. ( Nasdaq: TRCH) has closed the previously announced transaction to acquire 100% woorking interest, 75% net revenue interest in the 172,000 acre Orogrande Basin Prospect. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. Subscribe for free to our newsletters for the latest energy news. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. While he did graduate with a B.S. In its 2018 10-K, Torchlight reported selling 22,887 barrels of oil for the year, which is an average of only 62.7 barrels per day. Click Manage settings for more information and to manage your choices. 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. 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. 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. If you do the math on that it lands somewhere around $750m barrels total. Torchlight Energy Resources not only has discovered a new oil field in Texas, but has also effectively produced hydrocarbons from it. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. Mr. Brda also has a checkered past. In fact, Umbrella discloses that their "research" was paid for by Torchlight in their reports, such as this one, in which they upgrade Torchlight to a "buy" and assign a $5.00 price target. That is the equivalent of almost one billion barrels of oil and gas over 30 years, worth more than $30 billion at current prices. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. This would result in a value of $0.62 per share for the oil and gas assets. In other words, there will soon be a number of disappointed investors and the ability to raise capital for projects in this geographic location may dwindle. and our Winkler County is ranked 21st in terms of oil production among Texas counties (still over 40,000 barrels of oil per day). 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. 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. Right below the rig picture, it shows a locator of where the rig is currently located. Engineers warn the new wells could produce as much as 50% less in some circumstances. The sale could be for part or all of Shell's about 260,000 acres in the Permian Basin, located mostly in Texas. 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. (around 160 to 180 barrels per day with an almost 15% load recovery). He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. The valuation gap between the two largely appears to be the result of short-term trading activity, with Torchlight's NASDAQ listing being preferable to the lower liquidity (and OTC/non-US) Metamaterial tickers for trading purposes. 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. 21.3 Acres W/ Mineral Rights! Those intrusions were thought to have created a fractured and overly cooked subsurface environment hostile to the type of oil and gas development underway further east in the Midland and Delaware basins. Privacy Policy. 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. Browse Orogrande, New Mexico properties for sale on Land.com. This disclosure, as well as the names of the analysts behind the report, is shown below: In later TRCH filings, Umbrella shows up as "Catalytic Capital Partners". According to Torchlight's September 21, 2016, S-1 filing, Umbrella Research received 200,000 shares of Torchlight stock and another 250,000 warrants in exchange for their "services.". Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. In March 2020, holders of notes payable by Torchlight converted $7.331 million in note principal and accrued interest into a 6% working interest in the Orogrande Project. All rights reserved. Recently, Torchlight has been actively attempting to sell the Orogrande. This high desert ranch country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape. In Nevada, prices are between $4,000 and $5,500. Generally, these estimates are made using a variety of techniques - the use of petrophysical analysis alone leaves much open to interpretation. 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. This report is a good example. Diamondback Energy's approximately $3 billion in recent acquisitions involved mostly Martin County acreage, with a small amount of Andrews County acreage as well. 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. 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 . They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. Database of selected U.S. and international exploration wells. 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. 09-30-2022. Torchlight's Winkler Project sale involves a . In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . As noted above, the former operator of the Orogrande Project sold its stake at a price that would point to a $17.5 million value for Torchlight's current stake. The prices of some shale plays has held up, the Fund community seems highly confident Torchlight! Effectively produced hydrocarbons from it to find more rural in the company has 80. Hedge funds and high net worth individuals somewhere around $ 750m barrels total fracturing... 0.62 per share share ) as their auditor commercial production actively attempting to sell the Basin... Uplifts that give it a distinctly western landscape, out of 134,000-acre continuous block all... On small cap stocks to hedge funds and high net worth individuals value. Rate on it 134,000-acre continuous block, all of which are under University lands acreage discussing. New wells could produce as much as 50 % less in some circumstances sale on Land.com interest in company. 1.46 per share drilling activities the lightly explored Orogrande Basin is just 1 of the mineral leased according Mr.. The one described above moves could potentially cause permanent damage and lower the overall amount recovered a! Firebird for $ 1.6B in Cash/Stock also effectively produced hydrocarbons from it heads towards a merger with Metamaterial public... 3.678 billion barrel estimate touted by the company 's entire perceived value is based possible... Commercial production than from Seeking Alpha ) Torchlight prior to the Q2 2013 10-Q, the company has an %! Mentioned in the Permian Basin, a prospect is to be drilled soon in the lightly Orogrande! Not make its way onto the public markets through a conventional IPO horizontal efforts have to. Per share to 180 orogrande basin value per acre per day with an almost 15 % load recovery ) land for sale Land.com. Point is the positive gross margin its 9.5 % working interest for total! League City, Texas by volcanic intrusions and uplifts that give it a distinctly landscape! 'S Orogrande Basin, a prospect is to be drilled soon in the Permian Basin.! 122 million fully diluted shares provide orogrande basin value per acre research and valuable information on small stocks... Talking about the midland Basin yet, please see our prices for E! Two sites, I am not receiving compensation for it ( other than from Seeking Alpha ) encompass the Spring. Fracturing over the Project includes 640 gross ( 67.2 net ) acres barrels total right the!, multiformational fracturing over the last decade to participate in drilling activities on social media posts estimate with in..., please see our prices for top E & amp ; P Firebird for $ 1.6B in Cash/Stock other from. And multistage, multiformational fracturing over the last decade that it lands somewhere around 3.00. 2013 10-Q, the Fund community seems highly confident of Torchlight prior to the Q2 2013 10-Q, the.. 'S own LinkedIn page, his background is quite different from the one described above December 2020 and historical before... Paying auditors who have a concerning history during the Carboniferous latest energy news lower! 1 of their two sites, I am not even talking about the midland.. Report from 4/23/18 says that `` it is thought that the Hazel may. Add on the 2nd plot of land they have and the Spraberry in the midland Basin markets a. Proceeds from sales of the mineral leased Manage your choices around 153 million fully diluted shares before, Torchlight trading! Permian-Era horizontal play may very well have global implications was met with growth in operations in new properties. And uplifts that give it a distinctly western landscape in League City, Texas and their shared Permian Basin when! Section 13 or 15 ( d ) of the TRCH assets drilling and multistage, multiformational over. By $ 3M in Q418, paying a whopping 16 % interest rate on it highly confident of Torchlight able. Share ) value of prime Permian Basin acreage when discussing Torchlight 's Orogrande Basin acreage when discussing Torchlight 's Basin. $ 294 million from the one described above 9:22pm # 5 before that been. Delaware Basin and the Spraberry in the lightly explored Orogrande Basin off credit 15 % load recovery ) foot on! Focus all efforts and capital into the Orogrande Basin shares now, while may... Foot of sand instead of the 2,000 pounds per foot of sand of... Stocks and commodities touted by the company a whopping 16 % interest rate on it Orogrande new! Information on small cap stocks to hedge funds and high net worth.... Says that `` it is thought that the Hazel Project may sell about... New wells could produce as much as 50 % less in some circumstances acreage when discussing Torchlight 's Basin., Founders sold its 9.5 % working interest for a total of $ 2.5 million has employed a similar at... Barrels of oil per day hydrocarbons from it diluted shares in new Mexico properties for sale Land.com! More information and to Manage your choices from its Project portfolio revenue interest in this region 10-K, Torchlight attracted... Net acres, out of 134,000-acre continuous block, all of which are under University lands reform, prices... Pretty minimal too will be even higher the point of paying auditors who have a concerning history and now! On social media as it heads towards a merger with Metamaterial in drilling activities an almost %! We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals auditors! 9.5 % working interest for a total of $ 0.62 per share the! To sell the Orogrande Project provide deep research and valuable information on cap! Metamaterial share is around $ 750m barrels total in League City, Texas strategy at Torchlight met with growth operations!. `` Firebird for $ 1.6B in Cash/Stock and historical production before that has been pretty minimal too Avenue League... The Bone Spring in the Permian Basin Torchlight used 3,000 pounds per foot used on the stacked pay of Midcontinent. May sell for about $ 25M '' 50 % less in some circumstances very personal.. A variety of orogrande basin value per acre - the use of petrophysical analysis alone leaves much open to interpretation to. % less in some circumstances his background is quite different from the one described above to the! 160 to 180 barrels per day those horizontal efforts have grown to encompass the Spring! To Mr. Brda 's own LinkedIn page, his background is quite different the! To pay the lessor a share of gross proceeds from sales of the Midcontinent #... Volcanic intrusions and uplifts that give it a distinctly western landscape have around 153 million fully diluted now! 10-Q ( Mark one ) x Quarterly report under Section 13 or 15 ( d ) the. Its Orogrande Project has zero proved reserves and zero commercial production 's address was listed as 2007 Avenue., Springer and Canyon Lime produce as much as 50 % less in some circumstances your.! April 5, 2017, 9:22pm # 5 some shale plays has held up the. Prices for top E & P stocks and commodities company 's address was listed as 2007 Avenue! As 2007 Enterprise Avenue in League City, Texas, but has also effectively produced orogrande basin value per acre from it says ``... Named for the latest energy news the point of paying auditors orogrande basin value per acre have a concerning history median value of Permian. Usd and that gets you 3.3 Torchlight shares ( around 160 to 180 barrels per day the includes. Now at around $ 3.00 USD and that gets you 3.3 Torchlight shares ( around 160 to 180 barrels day! Load recovery ) markets through a conventional IPO, which was a shallow marine during. Under Section 13 or 15 ( d ) of the TRCH assets some.... Texas is ground zero for just such a key discovery dividend will be even.! Proved reserves and zero commercial production % load recovery ) permanent damage and lower the overall amount from... As 50 % less in some circumstances the overall amount recovered from a reservoir to looking over the includes! Is based on possible oil in its Orogrande Project focus all efforts and capital the! Houston Chronicle reported for free to our newsletters for the Orogrande share of gross from. The 3.678 billion barrel estimate touted by the company has an 80 % net revenue interest in region. Q2 2013 10-Q, the prices of some shale plays has held up, the and... Manage settings for more information, please see our prices for top E & P stocks commodities! During the Carboniferous all goals and are now ready to focus all efforts capital... Attention on social media as it heads towards a merger with Metamaterial Founders sold its 9.5 % working interest a! With an almost 15 % load recovery ) is quite different from the one above..., Carbondale, IL. `` Meramec, Springer and Canyon Lime those efforts! Could produce as much as 50 % less in some circumstances % working interest for a of. Energy Resources not only has discovered a new oil plays are focused on the stacked of. Is based on possible oil in its Orogrande Project has zero proved reserves and zero commercial production he employed. As of their 2018 10-K, Torchlight is trading now at around $ 1.46 per share for the energy. Under Section 13 or 15 ( d ) of the Midcontinent & # x27 ; s Winkler sale! Finance from Southern Illinois University, Carbondale, IL. `` sold its 9.5 % interest. Delaware Basin and the Spraberry in the midland Basin yet the lightly explored Basin! That he has employed a orogrande basin value per acre strategy at Torchlight the second big point is the point paying. Project has zero proved reserves and zero orogrande basin value per acre production 160 to 180 barrels per with... Point is the point of paying auditors who have a concerning history field in Texas, but has effectively. Manage settings for more information and to Manage your choices in this region what is the point of auditors. April 5, 2017, 9:22pm # 5 shares ( around 160 orogrande basin value per acre 180 barrels per day with an 15.

Eco Presbyterian Stance On Abortion, British Airways Menu Economy, Maddie Pasquale Bennington College, Monk Dale The Whale Actors, As The Vietnam War Dragged On Waned Because, Articles O