The Energy Report
Source: Streetwise Reports 12/27/2018
Oil and gas drilling company hits a milestone at its 133,000 acre position in the Permian Basin in Texas. On the heels of a $6 million financing deal, the company has been releasing drill results and continues to drill.
Torchlight Energy Resources Inc. (TRCH:NASDAQ) completed the drilling phase of the A39 #1 well in addition to the A11 #2 well, both located in the Orogrande Basin in Hudspeth County, Texas. Torchlight owns 72.5% working interest in full of the 133,000 net acre unit.
Earlier this month, the company announced its that in conjunction with drill partner Wolfbone Properties and operator Maverick Operating, Torchlight has drilled A39 #1 to a vertical depth of 4,035 feet, and casing was set.
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The company noted that “electric logs show excellent hydrocarbon potential in multiple intervals which is representative of economical conventional and unconventional productive formations.”
This was preceded by an announcement in late November that well A11 #2 was drilled to a depth of 4,009 feet and casing was set.
Both wells will be “perforated and stimulated to commence testing of each well. Fracture stimulation will be employed at a later time as needed after results are measured,” the company noted.
“We are making tremendous headway in our core project, the Orogrande, stated John Brda, Torchlight’s CEO. “Each well we drill gives us further scientific conformation with the last two wells demonstrating our pioneering effort to prove up a new pay zones within a newly discovered hydrocarbon system.”
“We have proof positive of the existence of additional potential pay zones including an exciting San Andres look alike. As each well is drilled and completed it is important to remember that our results are proving viability for a much larger developmental effort and will accelerate our ongoing discussions with larger independents who have expressed interest in the project as a partner or acquirer,” Brda added.
The next location to be drilled will be the University maverick A24 #1, where Torchlight plans to commence drilling after the holidays. Torchlight will be “testing a structural high that it expects will prove eight potential zones below the unconventional Penn formation that was previously discovered in the A25 #1 horizontal well.”
The Orogrande Basin isn’t Torchlight Energy’s only focus.
$6 Million Financing for All Three Projects
Torchlight Energy currently has three ongoing projects: Orogrande Basin, Delaware Basin and Midland Basin. The company announced its $6 million financing in late October for all three projects.
Source: Torchlight Energy
The funds were used for the expansive drilling at Orogrande Basin. Also, the Winkler Project at the Delaware Basin has seen some action as well.
Located in Winkler County, Texas, the project includes 640 gross (67.2 net) acres. (10.72% of the property will not be operated on.) Torchlight Energy has a net revenue (NRI) of 75%.
Torchlight’s operating partner, MECO IV, recently stimulated the well using 9.2 million pounds of proppant in 358,000 barrels of fluid over 30 stages. The UL 21 War-Wink 47 2H is currently producing 260 MCFPD, and all streams are hooked up to sales. “The well is trending up nicely on a daily basis,” according to management.
Lastly, the Midland Basin projectthe Hazel Projectis composed of the Wolfcamp A & B area, covering 12,000 gross acres (9,600 net acres). All of the land will be operated (100%). The company has a 75% NRI.
There are a total of 70 million shares outstanding, with about 27% being held closely. Torchlight shares currently sit at $0.56.
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1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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