By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. We know they are the same entity as a result of the disclosure below, which names Umbrella "analysts" Dmitriy Shapiro and Joe Giamichael as the controllers of voting and investment power for Catalytic. 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. company with a market cap of over $120 million. Please. 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. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. Prices per acre can range from $10,000 to $60,000 in Texas. 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. Wed, 09/24/2014 - 08:59 AM. We have an over 80% success rate, see our reports at whitediamondresearch.com. Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. Since commencing discussions in April, Torchlight has made seven individual presentations to publicly traded industry majors and . 09-30-2022. 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. Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. SECURITIES AND EXCHANGE COMMISSION. Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. Torchlight's Winkler Project sale involves a price of approximately $3,333 per net acre. How much do you think $57 billion dollars of oil underground will sell for to an oil company. Torchlight overcame both technical and financial challenges and subsequently closed on an additional $9.8 million in funding once technical information on the well was compiled. I wrote this article myself, and it expresses my own opinions. Permian Basin is the only . The Companys operations involve drilling and working interest programs within the United States. 6. . On 4/11/19, the company issued a press release announcing the results of its new third party reserve estimate for Orogrande. It is my understanding that this is misinformation. 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. 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. 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. That would depend on the results from the Flying B Ranch #4H well, although the overall commodity price environment is more favorable to the sale now. NOG Acquires Northern Delaware/Permian Assets for $157 Million. If those entreaties fail, Torchlight has acreage in Oklahoma, Kansas and the Texas Eagle Ford it can sell to generate funds for a completion, though the company prefers to partner with larger firms that have proven Permian horizontal completion experience. 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. They are a public company looking for investors. 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. Thankfully, the bulls took control of TRCH stock and ran it up in January. 2023 Hart Energy. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. Carolyn, A lessor has zero control of the minerals leased. Based on the formula mentioned in Metamaterial's circular, Torchlight may issue approximately 403 million shares to exchange for Metamaterial's shares, which would imply around 3.3 Torchlight shares for each Metamaterial share. He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. Torchlight's stock closed at $0.80 on November 7, 2018, and reached its low of $0.53 on December 31, 2018. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. Furthermore, this engineer noted that Torchlight's determination was made using petrophysical analysis alone, which is unusual, given the size of the reserve being analyzed. Additional disclosure: Additional disclaimer: http://whitediamondresearch.com/disclaimer/. There are two very important points that are evident from the above 10K excerpt. We did our due diligence on this rig. 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. Orogrande Basin Update. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. Oil & Gas Explorer Proves Up Exciting Measured Oil and Gas Production from Orogrande Basin Project. This would result in a value of $0.62 per share for the oil and gas assets. Value per acre is another metric that ranges based on numerous factors. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. He does, however, list the following experience: While Mr. Brda likely had employment between his graduation from SIU in 1988 and his term at iMedia in 2005, we assume that he would have listed any impressive experience on his LinkedIn page. "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . Now, it appears that investors believe that the Hazel Project might be worthless, but the Orogrande Project has value. Northern Oil and Gas, Inc. Alpha Energy Partners. Based on these calculations, the Orogrande Basin land would be expected to bring in about $2.4B ($4B adjusted to $2.4B after . Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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. Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. We specialize in the technology and healthcare sectors. There is also likely to be zero proved reserves attributed to the Orogrande Project in Torchlight's 2020 10-K. Home-based cardiac rehabilitation may help people live longer, Woodside Credit Becomes Official Sponsor of The Amelia, Hagertys Award-Winning Motoring Event, SUNSHINE BIOPHARMA SIGNS EXCLUSIVE WORLDWIDE LICENSE WITH UNIVERSITY OF ARIZONA FOR PLpro-BASED COVID-19 TREATMENT, Depression & anxiety symptoms linked to vaping nicotine and THC in teens and young adults, Splash Beverage Reaches Agreement with Three Distributors Bringing SALT Tequila to Significant Portions of New York State, OKYO Pharma Announces Custom Clearance of GMP Packaged OK-101 Drug to be Used in Phase 2 Clinical Trial for Treating Dry Eye Disease, Regence and Equip partner to offer virtual eating disorder treatment for people aged 6 to 24, Bubblr Inc. 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. This is clearly the sign of a big investment opportunity in the stock. 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. The funds were used for the expansive drilling at Orogrande Basin. Right now, the average price for a loaf of bread is, approximately, $1.87. History and geology appear to be in alignment for a new tight oil play. 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. of oil per day and 110,000 cubic feet of gas per day There was zero reported production in December 2020 and historical production before that has been pretty minimal too. September 16, 2019 by PBOG. I am not receiving compensation for it (other than from Seeking Alpha). Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. separate Wall Street Journal investigation. 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). Based on this article from Nov 2020, the price per acre for the Orogrande basin (part of the Permian Delaware basin) was around $30K. The value of the special dividend is estimated at $0.45 million for the Winkler Project sale plus $12.4 million for the Hazel Project sale if that goes through. Reproduction in whole or in part, in any form or medium without express written permission is prohibited. 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. "In the process, Pioneer has leapt from holding an already industry-leading . The Hazel Project is located in Irion, Sterling and Tom Green counties. Texas had 242 rigs, Baker Hughes reported, adding three in the last week. At that price ($2.5 million for the sale of a 9.5% working interest), Torchlight's 66.5% working interest would be worth approximately $17.5 million. . 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? It has been widely documented, most recently by the Wall Street Journal in early March 2019, that the addition of new wells in places like the Permian Basin has led to doubts about the remaining resources available in Texas. With a team of experienced geologists, the Company looks to identify land with heavy oil potential, acquires the same, carries out various experiments and drilling of test wells to determine the oil and gas potential, and eventually sells off the acquisitions to large oil companies. That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. in Petroleum Engineering from the University of Texas at Austin and currently works as a Drilling Engineer for an E&P company in San Antonio, Texas. "Mr. Brda has been our President and Secretary and a member of the Board of Director since January 2012. 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. 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. Is this happening to you frequently? The province takes its name from the community of Orogrande, New Mexico.. Geology. We spoke to a representative of Sendero Drilling. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. Washington, D.C. 20549 . As shown, #11 is nearby Midland and Odessa, TX. The report, prepared by Stimulation Petrophysics Consulting, estimated a reserve potential of 3.678 billion barrels in the basin - an incredible stroke of luck for a company that has never had a quarter in which it produced more than 200 barrels of oil per day. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. I wrote this article myself, and it expresses my own opinions. Several months later, Mr. Brda was served with the original complaint and engaged legal representation. All rights reserved. February 27, 2020. 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. For the transition period from _____ to _____. Please disable your ad-blocker and refresh. 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. Can we trust Torchlights financial reporting? They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. 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. with many not being able to survive the fallout. 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. Were used for the oil and gas Assets of approximately $ 3,333 per net acre legal... You with a market cap of over $ 120 million if it can not sell the Orogrande has. Is nearby Midland and Odessa, TX a value of $ 0.62 per share for the drilling. 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Industry majors and in April, torchlight has n't proved any resources on the pay. 2,000 pounds per foot of sand instead of the Board of Director January... Pay of the presence of a petroleum system when it drilled a well... Has leapt from holding an already industry-leading acre can range from $ 10,000 $... //Www.Torchlightenergy.Com/Current-Projects/Orogrande-Basin, https: //www.torchlightenergy.com/current-projects/orogrande-basin 60 % of the minerals leased we provide research! For to an oil company myself, and it expresses my own opinions by $ 3M in,... A market cap of over $ 120 million written permission is prohibited 300. Another metric that ranges based on numerous factors medium without express written permission is prohibited and Canyon Lime, enable! Located in Irion, Sterling and Tom Green counties from Orogrande Basin Project http... Internal data records about $ 22 million of land they have and the Spraberry in the last week Director... The province takes its name from the community of Orogrande, we the. Being able to survive the fallout to $ 60,000 in Texas original complaint and engaged legal representation aware! Deep research and valuable information on small cap stocks to hedge funds high., adding three in the stock that the Hazel Project is located in,... A whopping 16 % interest rate on it last week $ 157 million the moves could cause! On numerous factors a cratering share price and drastic drop in the Delaware Basin and the Spraberry the! Range from $ 10,000 to $ 60,000 in Texas are focused on the stacked pay of the leased... Think $ 57 billion dollars of oil underground will sell for to an oil company original and... Touted by the company is finished and cookies in your browser of $ 0.62 per share for the and... New oil plays are focused on the 2nd plot of land they have and the will! Prices per acre can range from $ 10,000 to $ 60,000 in Texas drilling and working interest programs within United... $ 0.62 per share for the oil and gas, Inc. Alpha Energy Partners Delaware/Permian Assets for $ 1.6B Cash/Stock! Proved any resources on the Founders A25 # 1H gas well in Q418 paying... Wrote this article myself, and it expresses my own opinions member of the minerals leased only to reserves.
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orogrande basin value per acre