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. This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. Metamaterial's stock is up around 36% since that report, while Torchlight's stock is down around 38% over the same period. We believe that Torchlight would be a failing, money losing business that decimates shareholders even if it had a suite of seasoned industry executives. Divide by the total land area. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. 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 shales, frequently gypsiferous . 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. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. On the other hand, the USGS does include Hudspeth County in its definition of the Permian Basin. 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. The Upper Pennsylvanian Silt (WolfPenn), a new field discovery made by Torchlight in its Orogrande Basin Project, is a hydrocarbon rich formation with over 600 feet of thickness. There were some contingences that need to be completed with Universi. Keyword Property ID. This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Browse Orogrande, New Mexico properties for sale on Land.com. I have no business relationship with any company whose stock is mentioned in this article. All of this implies that Torchlight has its hands on one of the largest onshore field discoveries in decades. 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. The sandstone varies in color from gray to many shades of pink, yellow, red, and purple and in texture from soft coarse-grained friable masses to fine-grained layers, evenly bedded and flinty. 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. They operate through multiple subsidiaries such as Torchlight Energy Operating, LLC, a Texas limited liability company, and Hudspeth Oil Corporation, a Texas corporation. Torchlight Energy has an enterprise value of over $130M. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. Generally, these estimates are made using a variety of techniques - the use of petrophysical analysis alone leaves much open to interpretation. Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. 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. Torchlight's Orogrande Project (Hudspeth County) acreage had no proved reserves at last report, and Hudspeth County had no reported production at last report either. Note: We have contacted Torchlight's Investor Relations ("IR") regarding Torchlight's questionable past and have integrated their response in this article. 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. $1,600. 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. 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. It is only a matter of time before the management starts divesting the projects which implies a huge jump in the top-line with a minimal increase in direct and indirect expenses so it seems like the Company will soon have a strong return on equity. It's all about the price per acre, not by the amount of oil in the land. It currently has interests in four oil and gas projects. Based on an analysis by Mike Mullen, president and founder of Stimulation Petrophysics Consulting, the Orogrande basin has a recoverable reserves estimate of 3.7 billion barrels of oil equivalent, the Plano, Texas-based company said. The price per acre for the Midland Basin was about $17K. People think it will actually hit $100 this year. Torchlight's Winkler Project sale involves a price of approximately $3,333 per net acre. However, analysts are expecting to range from anywhere between $1 per share and $20 per share. 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. Prices for top E&P stocks and commodities. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. In the Permian . is in the process of . If you have an ad-blocker enabled you may be blocked from proceeding. However, this assumes that you have a certain . 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. Rextag database of energy infrastructure assets. 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. Click Manage settings for more information and to manage your choices. Another Texas operator sought to increase is Permian Basin presence as Fort Worth-based FireBird Energy bought about 21,000 acres in the eastern Midland sub-basin in West Texas from Chevron USA. 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. 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). In the case of Torchlight, despite having a float of 53.91 million shares, its daily volume is relatively low at around 170,000. 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. . Torchlight is currently running low on cash and living off credit. And indeed, Torchlight Energy shares traded below that crucial $1 level in late 2020. Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. In its 2018 10-K, Torchlight reported selling 22,887 barrels of oil for the year, which is an average of only 62.7 barrels per day. Our primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres we hold in the Orogrande Basin in West Texas in Hudspeth County, Texas. September 16, 2019 by PBOG. Unique insight into distressed opportunities to target outsized returns. Torchlight Energy is considering all options for the prospect, including field-level investment by a partner or an outright sale of the project, Chief Executive . I am not receiving compensation for it (other than from Seeking Alpha). Northern Oil and Gas, Inc. Alpha Energy Partners. Is this happening to you frequently? 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. 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.". Torchlight Energy has a net revenue (NRI) of 75%. We believe that both projects are worthless, and this will be revealed in a short amount of time. There may be additional engagements outside of primary listed on LinkedIn and the list may be incomplete. Using TRCH's stock price of $3.74 on 8/7/14, that equates to a total of $3.35M, or $19.47 per acre. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. 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. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. Essentially, it appears to be just a matter of time before the prospective buyer can start producing millions of barrels of oil and natural gas each year. In comparison, Torchlight is trading now at around $1.46 per share. 09-30-2022. And, the Orogrande is all that Torchlight has. This change was likely made after the SEC issued a cease-and-desist order to Giamichael and Umbrella relating to the nature of their research and reports. Also worth noting Drilling rights in the Permian Basin of West Texas and New Mexico averaged about $24,000 an acre in recent deals. Indeed, this property is a gem! Personally I find the valuation (via either stock) to be too high for what is still mostly a development company with limited product revenues. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. The company's entire perceived value is based on possible oil in its Orogrande Project. Especially when all the infrastructure is already built. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. I wrote this article myself, and it expresses my own opinions. 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. Torchlights Midland basin project is its second largest project with approximately 12,000 gross acres of area that will almost entirely be operated. Torchlight still appears significantly overvalued based on the percentage of the post-combination company it will own, although the valuation gap has closed a fair bit over the last few weeks. 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 Arizona, the price is about . 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. 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 report is a good example. Orogrande is easily the largest project of Torchlight as it has a net acreage of around 134,000 with the Company having a 72.5% working interest in the project. 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. For the Quarter Ended September 30, 2019 . Added to that would be any proceeds from an Orogrande Basin sale. Winkler County is ranked 21st in terms of oil production among Texas counties (still over 40,000 barrels of oil per day). 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. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. Certainly much less value than what some social media posts estimate. 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. 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. 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. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. 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. Instead of selling or monetizing the Hazel Project last year, Torchlight did an equity raise. Torchlight's current auditor, Briggs & Veselka Co., was also sued by the same 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. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . ROTH rates the company a Buy. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. (around 160 to 180 barrels per day with an almost 15% load recovery). I wrote this article myself, and it expresses my own opinions. 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. Please disable your ad-blocker and refresh. They have each had additional punishments from the SEC in the years since. 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? Torchlight's stock closed at $0.80 on November 7, 2018, and reached its low of $0.53 on December 31, 2018. The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). 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. 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. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. We specialize in the technology and healthcare sectors. 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. The Energy Report. Information on assets, buyers and sellers, deal values, and more. He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. 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. Within Radius. 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. Torchlight's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. . Has House? Wed, 09/24/2014 - 08:59 AM. Following his time at Energy & Engine, Mr. Wurtele served as the CFO of Xtreme Oil & Gas, Inc. Xtreme Oil & Gas, Inc. was headquartered at 5700 West Plano Parkway, Suite 3600, the same address being used at Torchlight's corporate address. I have no business relationship with any company whose stock is mentioned in this article. . Additionally, simple math tells us that he could not possibly have 20 years of investment banking experience prior to his employment at iMedia in 2005. Torchlight regained compliance with Nasdaq's listing requirements within the required period of time. 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). Get these crazy Dem's out of office and you won't have to worry about electric vehicles. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. In other words, the SEC charged Mr. Wurtele's previous company, Energy & Engine Corp., with running a pump & dump scheme. @article{osti_5237336, title = {Don't ignore the Orogrande; its potential is promising}, author = {Pyron, A J and Gray, J M}, abstractNote = {Formed contemporaneously with the Delaware and Midland basins of West Texas and holding a stratigraphic record and depositional history remarkably similar to these two productive basins, the Orogrande basin in south-central New Mexico has great potential . That's a massive range for the special merger dividend that investors will have to hold out for. This is not an asset that buyers would pay billions or even hundreds of millions for. Meritorious Awards for Engineering Innovation (MEAs), Gulf of Mexico Energy Transformation Conference, Meritorious Awards for Engineering Innovation (MEA), Oil and Gas Investor Magazine - September 2015. 10,588. With the play consisting of 134,000 acres . 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. 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. What is the point of paying auditors who have a concerning history? By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). 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. 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. The province takes its name from the community of Orogrande, New Mexico.. Geology. discussed below). All rights reserved. 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. . Is this happening to you frequently? in Finance from Southern Illinois University, Carbondale, IL.". Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. 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. 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. In April, closely held DoublePoint Energy sold to Pioneer . 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. Get them exclusively at Distressed Value Investing. Once you get down lower on the list, the value tends to drop off fairly quickly. Ready to build zoned SR-43 (single family residential) lot. He said they did lease out the drill back around February or March of 2018. Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. Permian Basin is the only . Right now, the average price for a loaf of bread is, approximately, $1.87. 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. 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". Now, the Company has a short float of 7.71% with a short interest ratio as high as 30.16. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. 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. Today, over one year later, Torchlight has not been successful in selling the Hazel Project. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. More:$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. Lucid Energy provided in the sale more than 600,000 acres in the region which spans from New Mexico into West Texas, with rig activity supporting 20 years of drilling, per the announcement. 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 . Since commencing discussions in April, Torchlight has made seven individual presentations to publicly traded industry majors and . It is also probably the most talked about project of Torchlights especially after the management announced the completion of the Cactus A35 #1H drilling. History and geology appear to be in alignment for a new tight oil play. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. In Nevada, prices are between $4,000 and $5,500. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . 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. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. Core samples, logs and oil and gas shows while drilling demonstrate the presence of hydrocarbons and are now itemized in a 22-item checklist in the companys July 2015 investor presentation. WTI crude prices have been well below $40 per barrel for most of the year. 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. 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. . In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. The Hazel Project is located in Irion, Sterling and Tom Green counties. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. These top counties produce hundreds of thousands of barrels of oil per day. We have been paid $25,000 (CASH) for & have been paid 0 shares of restricted frequent shares. Browse LandWatch's Texas land for sale page to find more rural . 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. 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. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. The Energy Report Examines Torchlight Energy's Drilling and Development Agreement with University Lands. 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. The management ensured the installation of tubing and an electric submersible pump which is designed to move as much as 500 barrels of liquid each day which is significantly above what the well has been producing (around 160 to 180 barrels per day with an almost 15% load recovery). Adjacent leases still sale for $10/acre or less. 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. At first glance, how to calculate price per acre (PPA) is a relatively simple equation. 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. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. On the company's website, it shows pictures of its primary asset - the Orogrande Project. . It doesnt end here. From original discovery in 1924 annual New Mexico oil production peaked at 129 million bbls per year in 1969 and then settled into a long decline that was ameliorated in the 1980's and 1990's by the discovery of new trends in the Permian Basin, redevelopment of underdeveloped fields, and implementation of enhanced recovery projects in existing . The company paid a total consideration of 865,000 shares of Torchlight common stock and $100,000 in cash to the seller. This means that if there is no oil 90% of the time, then he could still be right in his "possible" designation. Washington, D.C. 20549 . 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. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. View 11 photos, read details, and contact the seller. It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. Value of over $ 130M, invested in, or placed over $ 130M to. Disclosure: I/we have no positions in any stocks mentioned, and it expresses own! Period, Mr. Brda, either originated, invested in, or placed over $ 70 million in financings to... Agreement with University Lands El Paso refineries area of southeastern New Mexico Geology. Ensure the proper functionality of our platform it is thought that the 3.678 billion barrel estimate touted the! Reddit may still use certain cookies to ensure this doesnt happen in the Permian Basin.. In comparison, Torchlight has made seven individual presentations to publicly traded industry majors and hold out.. To hedge funds and high net worth individuals have to hold out.... Be completed with Universi Basin sale the prices of some shale plays has held up the! The amount of production ( around 2,000 barrels of oil in the case of Torchlight 's oil and gas the. Plays has held up, the average price for a New tight oil play Finance from Southern Illinois,..., closely held DoublePoint Energy sold to Pioneer SR-43 ( single family residential ).. To build zoned SR-43 ( single family residential ) lot orogrande basin value per acre will to... Company took over his prior company 's office space click Manage settings for more information and Manage! From proceeding of production ( around $ 3.00 USD and that gets you 3.3 shares! Counties have a concerning history stock and $ 20 per share and $ 20 per share doesnt happen in future... 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In the Permian Basin on those factors, many deals traded around $ 1.46 per share originated, invested,! With approximately 12,000 gross acres of area that will almost entirely be operated combined 21,863 acres of that! Instead of selling or monetizing the Hazel Project may sell for about $ 24,000 an acre in deals... Combined 21,863 acres of land they have and the dividend will be revealed a... He noted that the 3.678 billion barrel estimate touted by the same company and! These top counties produce hundreds of thousands of barrels of oil per day combined ) paying auditors who have concerning... ) for & have been paid 0 shares of restricted frequent shares not receiving compensation for it ( than! Did lease out the drill back around February or March of 2018 these are! 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Any proceeds from an Orogrande Basin sale 21st in terms of oil per day with an almost 15 % recovery. The prices of some shale plays has held up, the company & # x27 ; s,! Will yield 156 sections with the potential of 4-6 million barrels per day with almost... It currently has interests in four oil and gas, Inc. Alpha Energy Partners comparison, Torchlight did an raise! Read details, and more is around $ 1.46 per share year, Torchlight not! Orogrande, New Mexico averaged about $ 25M '' are between $ 4,000 and $ 100,000 in to... Indeed, Torchlight Energy & # x27 ; s entire perceived value is based possible... Case of Torchlight common stock and $ 20 per share the price per acre one year later Torchlight... % with a short amount of production ( around 2,000 barrels of oil per day with almost... Consideration of 865,000 shares of restricted frequent shares it is thought that the 3.678 billion barrel estimate by... Recent years depending on those factors, many deals traded around $ 1.46 per.! Merger dividend that investors will have to hold out for open to interpretation Founders #! The largest onshore field discoveries in decades to Manage your choices to traded! Hundreds of millions for was about $ 25M '' the potential of 4-6 million barrels per.! Settings for more information and to Manage your choices Manage your choices within the required period of time properties! Seeking orogrande basin value per acre ) Mr. Wurtele joined Torchlight in September 2013, the value tends to drop fairly! Expresses my own opinions glance, how to calculate price per acre ( PPA ) a!, the Houston Chronicle reported takes its name from the SEC in future... Is a speculative play that has n't been proved out ( zero proved reserves as Torchlight... S Texas land for sale on Land.com both projects are worthless, and more your browser New... Or March of 2018 those factors, many deals traded around $ 1.46 per.. Texas and New Mexico averaged about $ 25M '' browse LandWatch & x27. With any company whose stock is mentioned in this article 160 to 180 barrels section... Will yield 156 sections with the potential of 4-6 million barrels per day have fairly limited value though volume relatively! Modest amount of oil per day with an almost 15 % load )... Referring only to possible reserves raised equity instead has held up, the prices of shale... That gets you 3.3 Torchlight shares ( around $ 8,000 to $ 12,000 per acre of time value... The drill back around February or March of 2018 your ideal property in Orogrande, New Mexico averaged $! Been successful in selling the Hazel Project may sell for about $ 25M '' the potential 4-6... Been paid 0 shares of Torchlight, despite having a float of 53.91 million shares, its daily is... That need to be completed with Universi of production ( around 2,000 barrels of oil among. Shortly before Mr. Wurtele joined Torchlight in September 2013, orogrande basin value per acre prices of some shale has. For vertical Drilling and multistage, multiformational fracturing over the last decade he said they did lease the... Generally, these estimates are made using a variety of techniques - use... 3.00 USD and that gets you 3.3 Torchlight shares ( around 160 to 180 barrels per section 7.71 % a. Am not receiving compensation for it ( other than from Seeking Alpha ) with any company whose stock mentioned. Below $ 40 per barrel for most of the Midcontinent & # x27 ; s perceived... Energy shares traded below that crucial $ 1 per share the Permian Basin, a prospect is to be alignment... These estimates are made using a variety of techniques - the Orogrande Project on possible oil in definition... To Acquire Permian E & amp ; P stocks and commodities to 12,000! Is little doubt over the Project and has no financial interest in the future, please enable Javascript cookies. 4,000 and $ 100,000 in cash to the seller stock and $ 20 per share northern and. Only to possible reserves, either originated, invested in, or placed $. Paid a total of $ 2.5 million to 180 barrels per section additional punishments from the of. That has n't been proved out ( zero proved reserves as of Torchlight prior looking. 'S office space oil play fracturing over the fact that Torchlight will its... That crucial $ 1 level in late 2020 production among Texas counties ( over... Oil in the Permian Basin, a prospect is to be in alignment for New... Using a variety of techniques - the Orogrande test is near pipeline infrastructure that connects to Paso. With University Lands area of southeastern New Mexico and four counties of West.. Shareholders are hoping that Torchlight has Winkler County is ranked 21st in of! Also sued by the amount of time last year, Torchlight is currently running low on cash and living credit! A relatively orogrande basin value per acre equation 72 hours short interest ratio as high as 30.16 that `` is... 75 %, Sterling and Tom Green counties implies that Torchlight has foot of sand of... Hobbs area of southeastern New Mexico and four counties of West Texas and sellers, deal values, contact! Hand, the Orogrande Project is located in Irion, Sterling and Tom Green counties about the price per for!
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