Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. It currently has interests in four oil and gas projects. This means that if there is no oil 90% of the time, then he could still be right in his "possible" designation. The Orogrande Basin Project & Its Big Breakthrough. Torchlight's price remains quite high by this measure, although some of the gap has closed. is in the process of . April 05, 2017 08:45 ET | Source: Streetwise Reports. If you need to do any conversions, here are some helpful numbers: there are 640 acres in a square mile, and 43,560 square feet in an acre. This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. 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. 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. with many not being able to survive the fallout. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . Cookie Notice From the 2018 10-K, it says: In April 2018, we announced that we have commenced a process that could result in the monetization of the Hazel Project. Price Per Acre. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. 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. Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. . For the Quarter Ended September 30, 2019 . 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 . Reproduction in whole or in part, in any form or medium without express written permission is prohibited. We went to the Sendero Drilling website, and you can actually locate where their rigs are. Rextag database of energy infrastructure assets. There is even some debate about whether the Orogrande Basin (with Torchlight's position located in Hudspeth County) is considered part of the larger Permian Basin area. 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. Metamaterial's stock is up around 36% since that report, while Torchlight's stock is down around 38% over the same period. The answer is that Torchlight did not make its way onto the public markets through a conventional IPO. 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. But they didn't work with Torchlight directly. Several operators in the Permian have since mastered the technology, and these are the partners whom Torchlight is targeting to complete the Orogrande test. 10,588. Divide by the total land area. Browse Orogrande, New Mexico properties for sale on Land.com. . Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. The funds were used for the expansive drilling at Orogrande Basin. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. We have been paid $25,000 (CASH) for & have been paid 0 shares of restricted frequent shares. 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. . the court entered a default judgment against him in September 2012. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. Prices for top E&P stocks and commodities. Torchlight took back operational control in Q4 2017 after Founders had spent $9.5 million to gain a 9.5% working interest in the project. That's your value per acre. September 16, 2019 by PBOG. 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. I wrote this article myself, and it expresses my own opinions. In comparison, Torchlight is trading now at around $1.46 per share. They leased the drill to Founders. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. Torchlight is currently running low on cash and living off credit. This is just a rough estimate based on the latest information I found, but if accurate it still points to Metamaterial's shares being significantly cheaper than Torchlight's shares if one wanted to invest in the new company. That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. That rig was there on the Orogrande in early 2018. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. This Seeking Alpha article from 2/21/17, says the Hazel Project is worth $150M. 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. He was promoted to CEO in December of 2014 with the exit of our co-founder Tom Lapinski. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Get them exclusively at Distressed Value Investing. 543 Acres M/L bordering over 25,000 Acres of Santa Fe National Forest. I was doing some math last night. . 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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Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. 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. 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. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. Please. On the company's website, it shows pictures of its primary asset - the Orogrande Project. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! 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. For the transition period from _____ to _____. 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. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. The well appears to be an analog to the Central Midland Basin Platform, although the Orogrande test is shallower and normally pressured. I wrote this article myself, and it expresses my own opinions. The price per acre for the Midland Basin was about $17K. These top counties produce hundreds of thousands of barrels of oil per day. 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". In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. He pointed to Pioneer's $7.6 billion purchase of Parsley Energy in October 2020 meaning the company spent about $14 million on Permian Basin assets in the past six months and is the most active acquirer in the upstream sector since the downturn created by COVID-19. With the play consisting of 134,000 acres . 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We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. Calvetti Ferguson has also had legal troubles in the past. Washington, D.C. 20549 . As well, the Permian Basin acreage that is considered valuable is concentrated in counties that have large amounts of oil and condensate production, and huge amounts of associated proved reserves. 21.3 Acres W/ Mineral Rights! "In the process, Pioneer has leapt from holding an already industry-leading . Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . The company said that it can extrapolate the Cactus well to make 1,500bopd and 11Mmcfpd potentially, or combined 3,300 barrels of oil equivalent per day (boepd), when equated to a 10,000ft lateral. . o Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934. Orogrande Basin Update. It would certainly make more sense for any longer-term investors that are interested in the company post-merger to invest via Metamaterial's stock though. One of the biggest reasons for this is that the management communication through press releases has largely revolved around the technical aspects of the different projects rather than talking about the huge upside potential that its projects hold. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. 6. Torchlight's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. Recently, Torchlight has been actively attempting to sell the Orogrande. 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. Torchlight has done a bit of exploratory work on the asset since then, but at last report there are still no proved reserves associated with it. Medoff was later barred by the SEC because he "sold a company's unregistered stock to the public through the use of materially false and misleading documents" and "ma[king] misrepresentations to investors about the progress and results of clinical trials for BioChemics' product and misled investors about valuations of BioChemics that were purportedly prepared by reputable independent investment banks.". Was able to survive the fallout and raised equity instead gas properties ( thus. 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