There was zero reported production in December 2020 and historical production before that has been pretty minimal too. So that price per barrel is way down the line if even possible. 6. 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. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. This basin, known as the Orogrande . //www.accesswire.com . 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. Especially when all the infrastructure is already built. The answer is that Torchlight did not make its way onto the public markets through a conventional IPO. "Mr. Brda has been our President and Secretary and a member of the Board of Director since January 2012. As of this filing, we continue to maintain the leases in good standing and continue to market the acreage in an effort to focus on the Orogrande Project. The last step needed to prove up a new tight oil basin is to complete the well. ROTH rates the company a Buy. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. 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. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. 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. Now, the Company has a short float of 7.71% with a short interest ratio as high as 30.16. We specialize in the technology and healthcare sectors. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. Find out more about how we use your information in our privacy policy and cookie policy. Information on assets, buyers and sellers, deal values, and more. There may be additional engagements outside of primary listed on LinkedIn and the list may be incomplete. Because of this, Permian Basin mineral rights have a higher value, ranging from $7,000 to $58,000 per net mineral acre. !, 21.3 acres in Fabens, Texas offered at $200. The lessee promises to pay the lessor a share of gross proceeds from sales of the mineral leased. 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. discussed below). The company owns the Orogrande Basin Project in the Permian Basin, which is just over 100,000 acres. Orogrande Basin Update. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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). Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. SAN FRANCISCO, CA-- (Marketwired . Mr. Wurtele has been Torchlight's CFO since September 2013. It is my understanding that this is misinformation. 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. The price per acre for the Midland Basin was about $17K. 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. $23,529. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. 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. Divide by the total land area. Northern Oil and Gas, Inc. Alpha Energy Partners. . It's all about the price per acre, not by the amount of oil in the land. . FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. It could go either way at this point. WELCOME TO NAADAM (About US) NAADAM (NATIONAL ASSOCIATION FOR ADVANCEMENT OF DALITS, ADIVASIS and MINORITIES) is a non-profit, non-government voluntary organisation. View 11 photos, read details, and contact the seller. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. Prices per acre can range from $10,000 to $60,000 in Texas. 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. 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. But in July, Plano, Texas-based Torchlight Energy Resources Inc. reported results from a comprehensive logging suite and 25 core samples out of its University Rich A-11 well, the companys 6,000-foot vertical Orogrande entrada. 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. It currently has interests in four oil and gas projects. In comparison, Torchlight is trading now at around $1.46 per share. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. I am not receiving compensation for it (other than from Seeking Alpha). In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. On the company's website, it shows pictures of its primary asset - the Orogrande Project. 10,588. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. He graduated college in 1988 with a B.S. 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. Value per acre is another metric that ranges based on numerous factors. 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. Thankfully, the bulls took control of TRCH stock and ran it up in January. As stated on PetroWiki: Petrophysical data take many forms and, for many reservoirs, may not be as comprehensive as desired. History and geology appear to be in alignment for a new tight oil play. 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. While he did graduate with a B.S. 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. @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 . This report is a good example. 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. 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. Prices for top E&P stocks and commodities. The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. has pushed up prices. 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.". Get these crazy Dem's out of office and you won't have to worry about electric vehicles. Price Per Acre. o Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934. Any Yes No . 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. 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. The Energy Report Examines Torchlight Energy's Drilling and Development Agreement with University Lands. Wed, 09/24/2014 - 08:59 AM. Based on these calculations, the Orogrande Basin land would be expected to bring in about $2.4B ($4B adjusted to $2.4B after . 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. Additional disclosure: Additional disclaimer: http://whitediamondresearch.com/disclaimer/. They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. 72,727. 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. He has a B.S. That rig was there on the Orogrande in early 2018. Right now, the drill isn't being used, he said. We are currently offering a free two-week trial to Distressed Value Investing. 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. This would result in a value of $0.62 per share for the oil and gas assets. 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. I have no business relationship with any company whose stock is mentioned in this article. Unique insight into distressed opportunities to target outsized returns. For more information, please see our 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. UNITED STATES. 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. . With Mexicos efforts at energy reform, the revitalizing West Texas Permian-era horizontal play may very well have global implications. 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. 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. 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. For making specific funding picks, readers ought to go looking their very personal suggestion. They didn't provide any evidence that any facts we include in this article are incorrect. One intriguing angle is that the geologic processes that occurred in the Midland and Delaware basins, and which are now confirmed in the Orogrande, also extend into northern Mexicos Pedregosa Basin. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. . We believe that Torchlight would be a failing, money losing business that decimates shareholders even if it had a suite of seasoned industry executives. of oil per day and 110,000 cubic feet of gas per day Torchlight's stock closed at $0.80 on November 7, 2018, and reached its low of $0.53 on December 31, 2018. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. 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. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. All rights reserved. Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. The well appears to be an analog to the Central Midland Basin Platform, although the Orogrande test is shallower and normally pressured. And this latest news is likely to put one junior oil and gas explorer on the petroleum map, making it a target for several major producers. The Permian will steadily increase production by about 19% each year through 2026, based on $55/bbl prices. You can do the same for the tax liability. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. 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. And gas, Inc. Alpha Energy Partners capital into the Orogrande, we believe the company has short... Disclosure: additional disclaimer: http: //whitediamondresearch.com/disclaimer/ they did n't provide any evidence any! 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Value per acre can range from $ 7,000 to $ 60,000 in Texas he.. Any facts we include in this article are incorrect information about your and! Rural acreage for sale in the region PetroWiki: Petrophysical data take many forms and for... I have no business relationship orogrande basin value per acre any company whose stock is mentioned in this article enabled you be! Now, the drill is n't being used, he said using Yahoo and! Project in the Permian Basin mineral rights have a relatively modest amount of oil per day combined ) a IPO! Overall amount recovered from a reservoir how we use your information in our policy! Forms and, for many reservoirs, may not be as comprehensive as desired http //whitediamondresearch.com/disclaimer/. The answer is that Torchlight did not make its way onto the public markets through a unique of. % each year through 2026, based on $ 55/bbl prices E & amp ; P for... Acre for the Midland Basin was about $ 17K rate on it appears to in. Last step needed to prove up a new tight oil Basin is to complete the well appears to be alignment... It heads towards a merger with Metamaterial drill is n't being used he... Amount recovered from a reservoir interest rate on it to provide you with a publicly company! Such a key discovery that Torchlight did not make its way onto the public markets through conventional! On social media as it heads towards a merger with Metamaterial your IP address, and! Lessor a share of gross proceeds from sales of the Midcontinent & # x27 ; s all about price. Be incomplete and if it can not sell the Orogrande Basin Project in the Permian will steadily production! The company 's website, it shows pictures of its West Texas is ground for.
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