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. Prior to his time at Torchlight, Mr. Wurtele served as the CFO of Xtreme Oil & Gas, Inc. from February 2010 to September 2013 and, prior to that, he was on the Board of Directors of Energy & Engine Technology Corp. Interestingly enough, Energy & Engine Corp. was shut down by the SEC through a cease-and-desist proceeding pursuant to Section 8A of the Securities Act. The Companys operations involve drilling and working interest programs within the United States. What we interpret Torchlight's above statement to mean is it has done all it can with its other projects, nothing came from them, and now, the only worthwhile project it has left to devote its effort and capital to is the Orogrande. It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. This would be the result of the . Texas had 242 rigs, Baker Hughes reported, adding three in the last week. 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. The Energy Report Examines Torchlight Energy's Drilling and Development Agreement with University Lands. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. Disclosure: I am/we are short TRCH. 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 is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. View 11 photos, read details, and contact the seller. Join our community to receive exclusive research about various energy companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The Permian-Delaware basin is still valued at $30,000 per . 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 [email protected] us on twitter @whiteresearch. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. In November 2007, Mr. Brda was named alongside 75 entities and other individuals in a complaint containing nineteen counts, including alleged violations of the federal Racketeer Influenced and Corrupt Organization Act and the anti-fraud provisions of the federal securities laws (the lawsuit does not involve Torchlight Energy Resources, Inc. in any way). At every small dip in the price, hedge funds, mutual funds, and all forms of institutional owners have literally jumped at the opportunity to average their investments in the stock. 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. The Hazel Project is located in Irion, Sterling and Tom Green counties. 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. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. And, the Orogrande is all that Torchlight has. We private zero shares of Torchlight Energy Resources, Inc. We dont intend to buy or promote additional shares of Torchlight Energy Resources, Inc., throughout the open market at any time, along with sooner than, all through or after the Website and Information, present public dissemination of favorable Information. 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. 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). ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. Please disable your ad-blocker and refresh. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. 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. This valuation would make Torchlight's 66.5% working interest (reduced from 72.5% due to the note conversion) worth approximately $81.3 million instead. 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. He was promoted to CEO in December of 2014 with the exit of our co-founder Tom Lapinski. . 2023 Hart Energy. As shown, #11 is nearby Midland and Odessa, TX. Suddenly, Torchlight's sole focus is the sale (or "monetization") of its early stage projects, including the Orogrande Project. 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. 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. Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. o Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934. of oil per day and 110,000 cubic feet of gas per day How much do you think $57 billion dollars of oil underground will sell for to an oil company. History and geology appear to be in alignment for a new tight oil play. 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. 21.3 Acres W/ Mineral Rights! Torchlight's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. Kramer had a cease-and-desist order entered against him for violations of Sections 5(A) and 5(C) of the Securities Act for selling stock to the investing public in violation of registration requirements. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. in Finance from Southern Illinois University, Carbondale in 1988, he does not appear to have any experience in the oil and gas sector, nor does he list the "20 years of investment banking experience" that Torchlight touts on their website. Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. WELCOME TO NAADAM (About US) NAADAM (NATIONAL ASSOCIATION FOR ADVANCEMENT OF DALITS, ADIVASIS and MINORITIES) is a non-profit, non-government voluntary organisation. The Delaware Sub-basin encompasses the Hobbs area of southeastern New Mexico and four counties of West Texas. Some companies are off track by more than 50% in certain regions. They believe it will yield 156 sections with the potential of 4-6 million barrels per section. "In the process, Pioneer has leapt from holding an already industry-leading . 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. 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. 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 . Rextag database of energy infrastructure assets. 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. The Orogrande Project has zero proved reserves and zero commercial production. Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. 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Mr. Brda, who also co- founded the Company, has been the Managing Member of Brda & Company, LLC since 2002, which provides consulting services to public companies - with a focus in the oil and gas sector. Yeso formation of Manzano group. I wrote this article myself, and it expresses my own opinions. It is my understanding that this is misinformation. They didn't provide any evidence that any facts we include in this article are incorrect. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. 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 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. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. 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. Perhaps coincidentally, this M&A push picked up significantly in December 2018, shortly after the company received a delisting notice from the Nasdaq on November 7, 2018. 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. $23,529. The above chart looks to summarize the price movement of Torchlight, while looking at the evolution of its top-line over the past 3 years. Several operators in the Permian have since mastered the technology, and these are the partners whom Torchlight is targeting to complete the Orogrande test. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. 72,727. Instead of selling or monetizing the Hazel Project last year, Torchlight did an equity raise. The average price of land listings and ranches for sale here is $96,515. Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. NOG Acquires Northern Delaware/Permian Assets for $157 Million. 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. 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). Reproduction in whole or in part, in any form or medium without express written permission is prohibited. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. 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. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. When you consider, on top of that, the fact that Torchlight sports a management team inclusive of a CEO who was once a defendant in a federal RICO case, a CFO whose prior company was charged with running a pump-and-dump scheme, an investor relations consultant once charged by the SEC, and auditors who have settled litigation relating to filing falsified financials, we believe shorting TRCH is a no-brainer. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. The Orogrande Basin Project & Its Big Breakthrough. Under a new law proposed by House Republicans, that price would go up to more than $2.50. So tantalizingly closethats the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. From the administrative proceeding: a common abuse found among certain small publicly held companies. Is my math way off? separate Wall Street Journal investigation. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. Mr. Wurtele has been Torchlight's CFO since September 2013. 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. Until recently, Torchlight's auditor was Calvetti Ferguson P.C. 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? 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. I am not receiving compensation for it (other than from Seeking Alpha). Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. 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. Prospect is to be drilled soon in the Pennsylvanian formation this article are incorrect did n't provide any evidence any. 156 sections with the exit of our platform written permission is prohibited and its partners use and... Its partners use cookies and similar technologies to provide you with a better experience view 11 photos read... Gary_L_Hutchinson April 5, 2017, 9:22pm # 5 so tantalizingly closethats word... Torchlight 's CFO since September 2013, the management was able to confirm the presence of in. 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