. The Energy Report. Based on this opinion, as well as the overall shift in investor sentiment in the Permian Basin, we do not believe Torchlight will be able to successfully complete the sale of the company or its asset(s). It could go either way at this point. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. 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. We see a big disparity here as the stock price has actually fallen by 28% over three years after a highly turbulent path but the revenues have consistently gone up. FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. Before, Torchlight was looking to participate in drilling activities. Torchlight's special dividend is likely to have limited value though. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. The Orogrande basin is just 1 of the TRCH assets. Torchlight Energy has an enterprise value of over $130M. Right now, the average price for a loaf of bread is, approximately, $1.87. Founders Oil & Gas was designated as the operator of the leases back in 2015. Add up the value of all the parcels you want to include in your average, if there's more than one. 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. All documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information furnished pursuant to Item 2.02 or Item 7.01, or any corresponding information furnished under Item 9.01, on any Current Report on Form 8-K) after the date of the initial registration statement and prior to the effectiveness of the registration statement and after the date of . Since commencing operations in 2013, the company has generated only $10.7 million in revenue while incurring $52.8 million in operating expenses and paying $14.4 million in interest expense, for a cumulative net loss of $83.9 million. I wrote this article myself, and it expresses my own opinions. The Hazel Project is located in Irion, Sterling and Tom Green counties. I wrote this article myself, and it expresses my own opinions. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. If you have an ad-blocker enabled you may be blocked from proceeding. 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. However, analysts are expecting to range from anywhere between $1 per share and $20 per share. 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.". The reason some of these stocks are hidden gems is because they are underfollowed and their excellent potential may be partially or totally obscured from the market. Right now, the drill isn't being used, he said. Torchlight's Winkler Project sale involves a price of approximately $3,333 per net acre. Except for the historic data launched herein, points talked about on this text embody forward-looking statements which might be matter to certain risks and uncertainties that may set off exact outcomes to differ materially from any future outcomes, effectivity or achievements expressed or implied by such statements. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. 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). has pushed up prices. We believe this news could really change the market perception and send the stock skyrocketing. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The company owns the Orogrande Basin Project in the Permian Basin, which is just over 100,000 acres. We did our due diligence on this rig. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. In the Permian . It's all about the price per acre, not by the amount of oil in the land. Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. There may be additional engagements outside of primary listed on LinkedIn and the list may be incomplete. 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 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. "In the process, Pioneer has leapt from holding an already industry-leading . Browse LandWatch's Texas land for sale page to find more rural . 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. //www.accesswire.com . View 11 photos, read details, and contact the seller. April 05, 2017 08:45 ET | Source: Streetwise Reports. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. A tiny sum, also considering that oil prices were much higher back then. The lessor can sell its share of the future income . Although Mr. Brda was not the mastermind of the APL scheme, he has shown a tendency to associate himself with bad actors at other public companies. Permian Basin is the only . See the 3rd party verified return on each of our bearish reports over the last 24 months at: https://breakoutpoint.com/as-summary/white-diamond-gvmtg/To inquire about becoming a premium subscriber, send a PM here or email us at research@whitediamondresearch.com.Follow us on twitter @whiteresearch. The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. 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. 6. Torchlight's agreement to sell its Hazel Project appears to value that land at $1,300 per net acre. The Delaware Sub-basin encompasses the Hobbs area of southeastern New Mexico and four counties of West Texas. They believe it will yield 156 sections with the potential of 4-6 million barrels per section. He is currently ranked in the top 2% of analysts by TipRanks. This high desert ranch country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. With the play consisting of 134,000 acres . This means that if there is no oil 90% of the time, then he could still be right in his "possible" designation. The valuation gap between Torchlight's shares and Metamaterial's shares (based on the business combination) remains substantial, although narrowed from a few weeks ago. 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. 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. The shales, frequently gypsiferous . and our You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. Prices per acre can range from $10,000 to $60,000 in Texas. It is also in a county that doesn't rank in the top 200 oil-producing counties in Texas. 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. 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. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. Investors looking at the previous data on the revenues would probably ask Yes, the revenues have more than doubled but have Torchlights margins been up to the mark? The answer is Yes. 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. status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages A&D Transactions Track A&D/M&A transactions by: buyer, seller, deal value . discussed below). Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. In Arizona, the price is about . People think it will actually hit $100 this year. I wrote this article myself, and it expresses my own opinions. 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. 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. . The area has 19 contiguous sections with a potential of as many as 300 horizontal drilling locations and a potential to generate 4 to 6 million barrels per section. Get these crazy Dem's out of office and you won't have to worry about electric vehicles. Given this fact, the Companys current level of earnings seems very reasonable and in no way justify the fall in the price. The lessee promises to pay the lessor a share of gross proceeds from sales of the mineral leased. Torchlight is in the process of drilling more test wells before it may eventually find a buyer for the development of these huge acres of land for what will surely be a handsome price. All of this implies that Torchlight has its hands on one of the largest onshore field discoveries in decades. We, Yahoo, are part of the Yahoo family of brands. Under a new law proposed by House Republicans, that price would go up to more than $2.50. Most people have it growing at about [a rate of] 800,000 barrels per year. It currently has interests in four oil and gas projects. 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. You can do the same for the tax liability. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. Despite describing itself as a company which "engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States", Torchlight has only produced 140,349 barrels of oil to date and has never produced more than 200 barrels of oil per day on a quarterly basis. Since commencing discussions in April, Torchlight has made seven individual presentations to publicly traded industry majors and . 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