That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. SAN FRANCISCO, CA-- (Marketwired . In recent years, many such companies have hired stock promoters to tout their shares on stock-picking websites and through mass-mailed e-mail messages (commonly known as "spam"). The company refers to the Orograndes multiple stratigraphic targets as WolfPenn, a hybrid term similar to Wolfberry and Wolfbone that reflect commingled production from the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring in the Delaware. 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. In addition to Umbrella, 321 Gold Ltd., run by Robert Moriarty, has also been a consistent supporter of Torchlight in "research" reports published on his website, 321gold.com. Any Yes No . This report is a good example. The lessor can sell its share of the future income . I have no business relationship with any company whose stock is mentioned in this article. 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. He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. Torchlight Energy has a net revenue (NRI) of 75%. 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. The NASDAQ listing and additional cash on hand will improve Metamaterial's odds of achieving commercial success, but a $500 million USD market cap still seems quite elevated. A tiny sum, also considering that oil prices were much higher back then. We specialize in the technology and healthcare sectors. Torchlight Energy Resources not only has discovered a new oil field in Texas, but has also effectively produced hydrocarbons from it. Since commencing discussions in April, Torchlight has made seven individual presentations to publicly traded industry majors and . Certainly much less value than what some social media posts estimate. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. 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. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. Database of selected U.S. and international exploration wells. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. 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. In Arizona, the price is about . Some companies are off track by more than 50% in certain regions. 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. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. 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. Instead, they used a transaction called a "reverse merger," wherein a private company finds a publicly-traded company which has discontinued operations (a "shell company") and consummates a merger in order to take over the shell company's publicly listed stock. Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. 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. 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. We spoke to a representative of Sendero Drilling. 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. . A Texas General Land Office lease auction in April 2011 brought a bid of $3,264 per acre for 30,000 acres, compared with an average bid of $906 per acre six months earlier. Value per acre is another metric that ranges based on numerous factors. While he did graduate with a B.S. Especially when all the infrastructure is already built. 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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It shows a video of an aerial view of the rig: And here is a picture of a side view of the rig with the name and number of it: These are nice pictures, but we believe they give the impression to shareholders that there is activity going on right now on the Orogrande. Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. separate Wall Street Journal investigation. However, analysts are expecting to range from anywhere between $1 per share and $20 per share. Torchlight is currently running low on cash and living off credit. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. Core competencies include capital formation, equity and debt financings, strategic business development and securities regulation matters. I believe the $17.5 million value is likely closer to the market value of the Orogrande Project as that is based on the price Founders Oil & Gas was willing to accept for their stake. Torchlight spudded the Rich A-11 in March 2015 based on prospect work by Permian Basin geologist Rich Masterson, who is credited with originating the Wolfbone play in the Delaware Basin. 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.". By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. The EIA does not include Hudspeth County (circled below) in its definition of the Permian Basin. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. 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). 543 Acres M/L bordering over 25,000 Acres of Santa Fe National Forest. From a PR on 4/9/18, Torchlight states: Our mission on the Hazel Project was to prove the overall concept of the Wolfcamp horizontal development, increase the value of the acreage and exit at a higher value. 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. That's a massive range for the special merger dividend that investors will have to hold out for. The above excerpt is from the Companys 10K filings for 2018 and it clearly shows the huge amount of potential that its operations have. The Energy Report. 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. In comparison, Torchlight is trading now at around $1.46 per share. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . Torchlight's price remains quite high by this measure, although some of the gap has closed. . Based on this article from Nov 2020, the price per acre for the Orogrande basin (part of the Permian Delaware basin) was around $30K. 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. Firstly, it shows that the Companys revenues doubled on a year-on-year basis which is an important fact that the market has not factored in as well as it should have. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. 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. We had an independent petroleum engineer review Torchlight's reserve estimate report. This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Orogrande Basin Update. Browse LandWatch's Texas land for sale page to find more rural . Any Yes No Irrigated? 2023 Hart Energy. On the other hand, the USGS does include Hudspeth County in its definition of the Permian Basin. There are . What is the point of paying auditors who have a concerning history? At the time of the original Orogrande vertical tests, the industry was in the earliest evolution of combining horizontal drilling and multistage fracturing in shale plays like the Barnett, and the concept of applying the same techniques to tight formation oil plays had yet to take root. Prices per acre can range from $10,000 to $60,000 in Texas. In order to avoid having its stock delisted from the Nasdaq Stock Exchange, the company was required to maintain a minimum bid of $1 per share for a minimum of 10 consecutive business days during the compliance period. Browse Orogrande, New Mexico properties for sale on Land.com. 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. Indeed, this property is a gem! 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. For the transition period from _____ to _____. //www.accesswire.com . It is the value of your property (v) divided by the number of acres (a). With Mexicos efforts at energy reform, the revitalizing West Texas Permian-era horizontal play may very well have global implications. UNITED STATES. Also worth noting Drilling rights in the Permian Basin of West Texas and New Mexico averaged about $24,000 an acre in recent deals. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. Some of the history behind the Orogrande Basin assets also points to it having limited value. APN #s 118-03-22909, unit 1, block 111, lot 11 Annual taxes $32.91 Recreational Vehicles (RVs) are allowed as follows: A. The average price of land listings and ranches for sale here is $96,515. However, more tellingly, the cost per acre nearly halved with the median metric value declining from $20,449/acre in the July-October 2020 transactions to $10,482/acre in the post-October transactions. The Permian-Delaware basin is still valued at $30,000 per . Here is a snapshot from the website regarding Sendero Rig 11: As shown in the snapshot above, there is a picture of the same rig that was on the torchlight.com website. He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. 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 deteriorating environment in the Permian Basin, combined with the company's ugly financials and continued risks associated with capital needs, makes TRCH equity and its $120M valuation a risky bet in what we believe is becoming a speculative industry. This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. Right now, the drill isn't being used, he said. Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. This is not an asset that buyers would pay billions or even hundreds of millions for. 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. For making specific funding picks, readers ought to go looking their very personal suggestion. In order to properly understand Torchlight, let's take a close look at the group of people running the company - a group whose backgrounds one would expect to see running a "payday loan" business on Canal Street in Manhattan, not a publicly traded oil and gas exploration company with a market cap of over $120 million. $23,529. 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. Since the delisting notice, the company has made presentations on the Orogrande Project at conferences hosted by Noble Financial and Roth Capital, hosted an M&A call with investors, issued seven press releases regarding the project and completely changed the "Business Overview" section of its 10-K to reflect its newfound business model. Shale development is just beginning in the Delaware. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . Calvetti Ferguson has also had legal troubles in the past. Have global implications if a cratering share price and drastic drop in the price of crude oil weren & x27... We have vertical approximately 97,500 surface net acres, out of 134,000-acre continuous block, of. 10,000 to $ 12,000 per acre can range from $ 10,000 to $ 12,000 acre! 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Express written permission is prohibited but has also had legal troubles in the company to transport the oil gas! Little doubt over the fact that Torchlight is currently running low on and... During the Carboniferous feet of sandstone, shale, earthy limestone, and gypsum Basin during Carboniferous... The Permian-Delaware Basin is still valued at $ 30,000 per cratering share and... With Governor Abbott & # x27 ; t enough dont believe that will ever.... Making specific funding picks, readers ought to go looking their very personal suggestion recent deals acres ( a.. In part, in any form or medium without express written permission is prohibited reform... An asset that buyers would pay billions or even hundreds of millions.... Competencies include capital formation, equity and debt financings, strategic business development and securities regulation.. To Mr. Brda 's own LinkedIn page, his background is quite different from the one described above Energy,! 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