orogrande basin value per acre22 Apr orogrande basin value per acre

We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. It is my understanding that this is misinformation. 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. We have an over 80% success rate, see our reports at whitediamondresearch.com. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. 6. On June 12, 2018, Nobilis Health Corp. filed a malpractice lawsuit in Houston, Texas against Briggs & Veselka. 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. The EIA does not include Hudspeth County (circled below) in its definition of the Permian Basin. 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. 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. Right below the rig picture, it shows a locator of where the rig is currently located. . Is my math way off? 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. If you have an ad-blocker enabled you may be blocked from proceeding. You can do the same for the tax liability. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. Browse LandWatch's Texas land for sale page to find more rural . 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. People think it will actually hit $100 this year. 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. I have no business relationship with any company whose stock is mentioned in this article. 09-30-2022. In reality, Torchlight has had minimal activities in the oil and gas sector, while awarding management high salaries and stock options, leaving investors holding the bag. . This report is a good example. The funds were used for the expansive drilling at Orogrande Basin. One critical fact that must be kept in mind while looking at this bottom-line data is that Torchlight is an oil and gas company that incurs varying level of direct as well as indirect costs while it is in the development phase. Northern Oil and Gas, Inc. Alpha Energy Partners. In other words, the SEC charged Mr. Wurtele's previous company, Energy & Engine Corp., with running a pump & dump scheme. He has a B.S. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). separate Wall Street Journal investigation. 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. I am not receiving compensation for it (other than from Seeking Alpha). NOG Acquires Northern Delaware/Permian Assets for $157 Million. April 05, 2017 08:45 ET | Source: Streetwise Reports. 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 . Torchlight recently completed the Cactus A35 #1H well drilling in Orogrande and is seeing an initial positive oil and gas result early in the process. Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. company with a market cap of over $120 million. Texas allows for single drilling and development units. He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. The Company has recently been in the news for striking oil in its largest project in Orogrande and the potential amount of the oil extracted could be as much as 3.678 billion barrels. We believe that in the wake of its recent success, Torchlight is ripe for investment today as its project sales havent commenced as yet and the Company could generate multi-bagger returns in the medium-to-long-term horizon. Unique insight into distressed opportunities to target outsized returns. 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. 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. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much . 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). 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. All rights reserved. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Some companies are off track by more than 50% in certain regions. Since commencing operations in 2013, the company has generated only $10.7 million in revenue while incurring $52.8 million in operating expenses and paying $14.4 million in interest expense, for a cumulative net loss of $83.9 million. 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. Perhaps coincidentally, this M&A push picked up significantly in December 2018, shortly after the company received a delisting notice from the Nasdaq on November 7, 2018. the court entered a default judgment against him in September 2012. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). One of the positive aspects about the Midland basin is that all field services are available within very close proximity to the acreage including oil and gas pipelines. This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. 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. is in the process of . Torchlight's Winkler Project sale involves a . Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. Any Yes No Irrigated? Mr. Wurtele has been Torchlight's CFO since September 2013. (10.72% of the property will not be operated on.) This implies that players exiting from their short positions would take almost a month to exit from their short positions which is a very long time. I wrote this article myself, and it expresses my own opinions. They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. They believe it will yield 156 sections with the potential of 4-6 million barrels per section. The province takes its name from the community of Orogrande, New Mexico.. Geology. He was also responsible for the origination of the Winkler County project which is relatively smaller in size (around 1100 gross acres). Certainly much less value than what some social media posts estimate. of oil per day and 110,000 cubic feet of gas per day We had an independent petroleum engineer review Torchlight's reserve estimate report. This required Mr. Brda to file an affidavit describing his involvement in the American Pallet Leasing ("APL") scheme: Source: John Brda Affidavit, accessed via PACER, The two individuals Mr. Brda did business with at APL were Craig Medoff and Curt Kramer. That's a massive range for the special merger dividend that investors will have to hold out for. In comparison, Torchlight is trading now at around $1.46 per share. New technologies, such as diverting agents, microfracturing, coil-tipping fracks, and digitalization can increase production in the Permian. 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. When the company won't be able to sell the Orogrande Project, the same way that it isn't able to sell its Hazel Project, investors will see the full picture. 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. and our 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. Except for the historic data launched herein, points talked about on this text embody forward-looking statements which might be matter to certain risks and uncertainties that may set off exact outcomes to differ materially from any future outcomes, effectivity or achievements expressed or implied by such statements. It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. The shales, frequently gypsiferous . But they didn't work with Torchlight directly. Keyword Property ID. Although Mr. Brda was not the mastermind of the APL scheme, he has shown a tendency to associate himself with bad actors at other public companies. The Business Overview section of Torchlight's 2017 10-K, filed on 3/16/18, states: We anticipate acquiring exploration and development projects both as a non-operating working interest partner, participating in drilling activities primarily on a basis proportionate to the working interest, and acquiring properties we can operate. Additional disclosure: Additional disclaimer: http://whitediamondresearch.com/disclaimer/. 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 April, closely held DoublePoint Energy sold to Pioneer . . 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. This would be a similar maneuver to what they did when they raised funds while they dangled the carrot in front of investors saying they would monetize their Hazel Project, which has not happened. Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. We are currently offering a free two-week trial to Distressed Value Investing. A searchable database of oil and gas debt and equity offerings. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . WTI crude prices have been well below $40 per barrel for most of the year. 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. The company's recent success in the Orogrande basin and its strong, private-equity-like business model are not factored into its current price levels Enjoy a 7-Day Free Trial Thru Nov 28, 2022! 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 used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . There are laws that keep them from lying, that's why they call them 'possible', but when it comes to rocks a mile under the ground, it's easy to say you see things that are promising. 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. Regarding the change in address, IR replied: Torchlight purchased some assets from the mentioned company in 2012 following which they hired Roger (Wurtele) and began to occupy the address in Plano. . Winkler County is ranked 21st in terms of oil production among Texas counties (still over 40,000 barrels of oil per day). 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. !, 21.3 acres in Fabens, Texas offered at $200. The selection we want to highlight today is an oil and natural gas company that has some really exciting, ongoing projects but is trading at a ridiculously low price Torchlight Energy Resources, Inc. (NASDAQ:TRCH). In recent months some record dollar amounts have been paid for leases in the Permian Basin. 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. The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. Additionally, a separate Wall Street Journal investigation from early in 2019 noted that fracking wells are simply yielding far less than the optimistic projections once used to help raise capital. Value per acre is another metric that ranges based on numerous factors. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished.

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