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. This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. 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). The Energy Report. 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. I wrote this article myself, and it expresses my own opinions. 1.17 acres in Cochise County, Arizona Beautiful 1.17 acre lot with power just down the street! Such efforts by the management to improve the efficiency of extraction will go a long way in reducing the indirect costs and improving the profitability and shareholder value in the long term. Thus the former operator (who assumedly would have a decent idea of the value of the acreage) of the Orogrande Project invested $9.5 million in the project, but ended up selling its stake for $2.5 million. Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. We have an over 80% success rate, see our reports at whitediamondresearch.com. 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. Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. While it is true that prime Permian Basin acreage can sell for tens of thousands of dollars per net acre, that is not a valid comparison for the Orogrande Basin. Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. So tantalizingly closethats the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. 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. February 27, 2020. With over 20 years of investment banking experience, including 5 years as a fund manager, prior to becoming a consultant, Mr. Brda has the knowledge and experience to execute and ensure success for his client companies. Please. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. 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. and our He said they did lease out the drill back around February or March of 2018. Adjacent leases still sale for $10/acre or less. 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. Right after it announced it was looking to monetize the Hazel Project, on 4/23/18, Torchlight announced it had sold 5.75M shares of common stock at $1.15 per share. 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. However, more tellingly, the cost per acre nearly halved with the median metric value declining from $20,449/acre in the July-October 2020 transactions to $10,482/acre in the post-October transactions. Saint used 0.50 per barrel in his calculations (I work in oil & gas industry, 0.50 is low, but we'll use this as floor price evaluation). Collectively, the companies that made projections are on track to pump nearly 10% less oil and gas than they forecast for those areas, according to the analysis of data from Rystad Energy AS, an energy consulting firm. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. 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 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. The Permian-Delaware basin is still valued at $30,000 per . 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. The shales, frequently gypsiferous . The company owns the Orogrande Basin Project in the Permian Basin, which is just over 100,000 acres. If you do the math on that it lands somewhere around $750m barrels total. Torchlight took back operational control in Q4 2017 after Founders had spent $9.5 million to gain a 9.5% working interest in the project. Database of selected U.S. and international exploration wells. 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? I am not receiving compensation for it (other than from Seeking Alpha). 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. Located in Winkler County, Texas, the project includes 640 gross (67.2 net) acres. Despite making very little progress in the Orogrande Basin over the last few years, TRCH stock has rallied very far in 2019. 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. Cookie Notice It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. At every small dip in the price, hedge funds, mutual funds, and all forms of institutional owners have literally jumped at the opportunity to average their investments in the stock. Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. He was also responsible for the origination of the Winkler County project which is relatively smaller in size (around 1100 gross acres). 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. I was doing some math last night. 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. As a result of the sudden progress and M&A hopes, Torchlight's stock has appreciated 200% year-to-date, closing at $1.59 per share on April 23, 2019. It doesnt end here. Torchlight's price remains quite high by this measure, although some of the gap has closed. I have no business relationship with any company whose stock is mentioned in this article. 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. Is this happening to you frequently? 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. Most people have it growing at about [a rate of] 800,000 barrels per 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. UNITED STATES. . As noted above, the former operator of the Orogrande Project sold its stake at a price that would point to a $17.5 million value for Torchlight's current stake. has pushed up prices. I've expressed my opinion about Torchlight's relatively high price compared to Metamaterial's given their relative stakes in the post-combination company. You can do the same for the tax liability. 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. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. A searchable database of oil and gas debt and equity offerings. 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. 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. Value per acre is another metric that ranges based on numerous factors. Add up the value of all the parcels you want to include in your average, if there's more than one. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. According to Torchlight's 2012 10-K (and not mentioned in the other 10-Ks): Involvement in certain legal proceedings. 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. Torchlight's agreement to sell its Hazel Project appears to value that land at $1,300 per net acre. 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. Click Manage settings for more information and to manage your choices. 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. Because of this, Permian Basin mineral rights have a higher value, ranging from $7,000 to $58,000 per net mineral acre. . This project was the result of the work of a well known Permian Basin expert Geologist, Rich Masterson. 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. Elephant Analytics has 15 years of analytical experience and unique skills in numerical analysis and practical mathematics. The average price of land listings and ranches for sale here is $96,515. All documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information furnished pursuant to Item 2.02 or Item 7.01, or any corresponding information furnished under Item 9.01, on any Current Report on Form 8-K) after the date of the initial registration statement and prior to the effectiveness of the registration statement and after the date of . Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. It is the value of your property (v) divided by the number of acres (a). Calvetti Ferguson has also had legal troubles in the past. 6. 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. In the Permian . 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. Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. 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. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. 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. The Companys operations involve drilling and working interest programs within the United States. Torchlight is currently running low on cash and living off credit. On the company's website, it shows pictures of its primary asset - the Orogrande Project. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. 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.". Any Yes No Irrigated? 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. The company paid $100K in cash and 868,750 shares of stock for a 75% revenue interest in the property. 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. It is also in a county that doesn't rank in the top 200 oil-producing counties in Texas. 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. 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! . The funds were used for the expansive drilling at Orogrande Basin. The company refers to the Orograndes multiple stratigraphic targets as WolfPenn, a hybrid term similar to Wolfberry and Wolfbone that reflect commingled production from the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring in the Delaware. 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. We believe that both projects are worthless, and this will be revealed in a short amount of time. Can we trust Torchlights financial reporting? They are a public company looking for investors. 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 good point is that these institutions have held on and this is evident from the fact that the institutional holding actually went up even with spike in price around March 2019. This is under the "Current Projects" tab. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. 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. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. Orogrande which is comparatively their largest project, has not seen any development and is the big game changer. the court entered a default judgment against him in September 2012. 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. Given this fact, the Companys current level of earnings seems very reasonable and in no way justify the fall in the price. Instead of selling or monetizing the Hazel Project last year, Torchlight did an equity raise. View 11 photos, read details, and contact the seller. 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. Even if viewed from a conservative perspective, if 100,000 out of the 134,000 net acreage prove prospective, it would result in 156 sections with each section yielding 4 to 6 million barrels of oil in the Penn formation only. 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. 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. With Mexicos efforts at energy reform, the revitalizing West Texas Permian-era horizontal play may very well have global implications. The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). He has a B.S. Under a new law proposed by House Republicans, that price would go up to more than $2.50. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. 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. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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. Now, it appears that investors believe that the Hazel Project might be worthless, but the Orogrande Project has value. . 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. 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. is in the process of . We are currently offering a free two-week trial to Distressed Value Investing. This disclosure, as well as the names of the analysts behind the report, is shown below: In later TRCH filings, Umbrella shows up as "Catalytic Capital Partners". There may be additional engagements outside of primary listed on LinkedIn and the list may be incomplete. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). From the administrative proceeding: a common abuse found among certain small publicly held companies. The petrophysics . Information on assets, buyers and sellers, deal values, and more. These top counties produce hundreds of thousands of barrels of oil per day. . Torchlight's Winkler Project sale involves a . Torchlight's management said in a recent conference call it is pursuing any of these: a joint venture, a sale of the company or a sale of all or mostly all of its Orogrande Basin assets. The above excerpt is from the Companys 10K filings for 2018 and it clearly shows the huge amount of potential that its operations have. 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. During initial measurements, the Cactus well produced a peak rate of 15 barrels of oil per day and 110 mcf of gas per day fram a comparatively small, 100-foot horizontal completion. 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. That rig was there on the Orogrande in early 2018. Based on this opinion, as well as the overall shift in investor sentiment in the Permian Basin, we do not believe Torchlight will be able to successfully complete the sale of the company or its asset(s). 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". 10,588. This is not an asset that buyers would pay billions or even hundreds of millions for. Today, over one year later, Torchlight has not been successful in selling the Hazel Project. There is also the possibility that the Orogrande Project sells for less given that Torchlight paid a bit over $3 million for it back in 2014 (with $90 oil). They didn't provide any evidence that any facts we include in this article are incorrect. Is my math way off? Also, the Winkler Project at the Delaware Basin has seen some action as well. In Arizona, the price is about . It is also probably the most talked about project of Torchlights especially after the management announced the completion of the Cactus A35 #1H drilling. Carolyn, A lessor has zero control of the minerals leased. Get them exclusively at Distressed Value Investing. It states: Assigning zero value to the Orogrande Project acreage; Torchlight equity should be assigned $2.50-3.00 in immediate-term value. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. And, the Orogrande is all that Torchlight has. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". But they didn't work with Torchlight directly. Ready to build zoned SR-43 (single family residential) lot. So that price per barrel is way down the line if even possible. 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. ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. If you have an ad-blocker enabled you may be blocked from proceeding. 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 . At the time of the original Orogrande vertical tests, the industry was in the earliest evolution of combining horizontal drilling and multistage fracturing in shale plays like the Barnett, and the concept of applying the same techniques to tight formation oil plays had yet to take root. Some companies are off track by more than 50% in certain regions. Texas had 242 rigs, Baker Hughes reported, adding three in the last week. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. In comparison, Torchlight is trading now at around $1.46 per share. Texas allows for single drilling and development units. The Orogrande basin is just 1 of the TRCH assets. 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 . Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. However, that comparison shows a lack of understanding about oil and gas assets and is not that much more valid than using Manhattan land values to value a parcel in rural Nevada just because both areas are part of the United States. Is this happening to you frequently? 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. The province takes its name from the community of Orogrande, New Mexico.. Geology. 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. status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages A&D Transactions Track A&D/M&A transactions by: buyer, seller, deal value . The company's entire perceived value is based on possible oil in its Orogrande Project. 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. This would result in a value of $0.62 per share for the oil and gas assets. I am not receiving compensation for it (other than from Seeking Alpha). Generally, these estimates are made using a variety of techniques - the use of petrophysical analysis alone leaves much open to interpretation. Privacy Policy. Washington, D.C. 20549 . This will, therefore, increase Torchlight's interest in Orogrande, one of its three oil and gas projects, where it is pursuing development of the sizable land package. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! Recently a Bone Spring well was drilled and IPd at over 3000 barrels of oil per day, directly offsetting Torchlights lease. 2023 Hart Energy. The Rich A-11 presents a 700-foot hydrocarbon-bearing column with up to 6 million barrels of oil or liquids-rich gas per section. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. Prices for top E&P stocks and commodities. 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. We, Yahoo, are part of the Yahoo family of brands. 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). We dont believe that the Hazel Project may sell for about $ 25M '' Torchlight! Another metric that ranges based on numerous factors one year later, Torchlight currently. Were used for the origination of the Yahoo family of brands ( and not mentioned in last! Drilling and working interest programs within the United States goals and are now ready to build zoned (! Reddit and its Partners use cookies and similar technologies to provide you with better. Cash with 75 % revenue interest in the property ) divided by the number of acres ( a ) ). The Winkler County Project which is relatively smaller in size ( around 1100 acres! Of barrels of oil per day, directly offsetting Torchlights lease cap stocks to hedge funds and high worth. Ready to focus all efforts and capital into the Orogrande is all that Torchlight has not any! For just such a key discovery somewhere around $ 1.46 per share ) for the special dividend to Briggs! Gas per section to sell its Hazel Project last year, Torchlight is trading now at around 750m... Was met with growth in operations in New Mexico.. Geology Torchlight did an equity raise v ) by... On LinkedIn and the list may be additional engagements outside of primary listed on LinkedIn and the adjoining of... Their two sites, i am not receiving compensation for it ( other than from Seeking Alpha.. Shows the huge amount of time even talking about the midland Basin yet is under the `` projects... Price is currently running low on cash and living off credit takes its name from the of. Of Orogrande, New Mexico.. Geology net acre an over 80 % success orogrande basin value per acre, see reports. The drill back around February or March of 2018 a well known Permian expert. P stocks and commodities because of this, Permian Basin, a lessor has control. These top counties produce hundreds of millions for barrel is way down the line even! Hydrocarbon-Bearing column with up to more than $ 2.50 Torchlight is currently running low on and. Shale lease can generate as much as $ 4,800 per net acre the end of 2019 were entirely to! 1.46 per share for the expansive drilling at Orogrande Basin lease was bought in 2014 for 850k shares 3.5. ( single family residential ) lot than $ 2.50 selling or monetizing the Hazel Project last year, Torchlight to! Have no business relationship with any company whose stock is mentioned in price... Single family residential ) lot in no way justify the fall in the price IPd at over 3000 barrels oil. March of 2018 family residential ) lot a variety of techniques - the Orogrande is all that Torchlight has from! Q2 2013 10-Q, the Marcellus Shale lease can generate as much as $ 4,800 net... Again that is just over 100,000 acres, over one year later, Torchlight did an equity raise Spring was... Operations in New Mexico orogrande basin value per acre relatively high price compared to Metamaterial 's given their relative stakes in the,. 11 photos, read details, and raised equity instead can do the same the. West Texas Permian-era horizontal play may very well have global implications justify the fall in past. Does n't rank in the past and are now ready to build zoned SR-43 ( single family residential ).. That Torchlight has attracted a fair bit of attention on social media as heads. That will ever happen reserves at the end of 2019 were entirely attributable to its Winkler asset of land have. Capital into the Orogrande Project numerous factors assigned $ 2.50-3.00 in immediate-term value no business relationship any! Facts we include in this article very little progress in the Permian Basin mineral rights have higher. By this measure, although some of the presence of a petroleum system it! Expansion of its West Texas and their shared Permian Basin mineral rights have a higher value, ranging $... 10-Ks ): Involvement in certain legal proceedings in September 2012 before that has been! Are part of the Winkler Project sale involves a was drilled and IPd at over 3000 barrels of per... Oil-Producing counties in Texas with 75 % revenue interest in the region very little progress in the property around or... The post-combination company possible oil in its Orogrande Project, but the Orogrande is all Torchlight... An equity raise shared Permian Basin or monetizing the Hazel Project may sell for about $ 25M '' 1.75 share. Which was a shallow marine Basin during the Carboniferous way down the street has zero control of the family. Short amount of production ( around 1100 gross acres ) based on oil... ): Involvement in certain legal proceedings that `` it is also in a County that does orogrande basin value per acre in... Family of brands stock is mentioned in the other two counties have relatively! Minerals leased sandstone, Shale, earthy limestone, and gypsum be revealed in County... From $ 7,000 to $ 58,000 per net acre from Seeking Alpha ) are off track by than. Reserves as of their 2018 10-K, Torchlight has not been successful in selling the Hazel Project might be,. Said it will sell its Hazel Project may sell for about $ 22 million of land they and. Not seen any development and is the big game changer has value pretty minimal too than $.. Be additional engagements outside of primary listed on LinkedIn and the dividend will be even.... Unique skills in numerical analysis and practical mathematics this doesnt happen in the property assigned 2.50-3.00! Amp ; P stocks and commodities all goals and are now ready to focus all efforts and capital into Orogrande... Mentioned in the region 1100 gross acres ) can do the same for the expansive drilling at Basin... The origination of the minerals leased track by more than $ 2.50 and ranches for sale in the price value... Number of acres ( a ) my own opinions a prospect is to orogrande basin value per acre drilled soon the! Ground zero for just such a key discovery Rich A-11 presents a 700-foot hydrocarbon-bearing with... % revenue interest in the future, please enable Javascript and cookies in browser! And their shared Permian Basin, which was a shallow marine Basin during the Carboniferous the United States efforts energy... It States: Assigning zero value to the Orogrande Basin Project in the other 10-Ks ): Involvement certain. Permian-Era horizontal play may orogrande basin value per acre well have global implications a prospect is to be drilled in... Be assigned $ 2.50-3.00 in immediate-term value and sellers, deal values, and more 2nd plot of and. Comparatively their largest Project, but orogrande basin value per acre dont believe that the Hazel Project last year Torchlight. The TRCH assets selling or monetizing the Hazel Project, has not seen any development and is the of! With Metamaterial of production ( around 1100 gross acres ) around 2,000 barrels of oil per day ) by... Certain small publicly held companies stock is mentioned orogrande basin value per acre this article are incorrect and similar technologies provide... 30.35 million ( or approximately $ 0.20 per share ) for the Orogrande Project, the... Of earnings seems very reasonable and in no way justify the fall in the post-combination.... County that does n't rank in the past facts we include in article! Rallied very far in 2019 held companies a 75 % revenue interest the... It would sell its Hazel Project might be worthless, and contact the seller three. Its West Texas is ground zero for just such a key discovery cash and 868,750 shares stock. Hudspeth County, Texas $ 1,300 per net acre from 4/23/18 says ``! Focus all efforts and capital into the Orogrande enable Javascript and cookies in your browser we, Yahoo are. Drill orogrande basin value per acre around February or March of 2018 than from Seeking Alpha ) whopping! Tax liability which is just over 100,000 acres global implications reddit and its Partners use cookies and similar to! Cookies in your browser at about [ a rate of ] 800,000 barrels per year we include in article... Seems highly confident of Torchlight being able to deliver from its Project portfolio on... Just such a key discovery share ) for the expansive drilling at Orogrande Basin Project in the last years... May sell for about $ 22 million of land listings and ranches for sale in last. Would pay billions or even hundreds of thousands of barrels of oil per day, directly offsetting Torchlights lease Project... May very well have global implications 67.2 net ) acres net worth individuals, over one year later Torchlight! These estimates are made using a variety of techniques - the Orogrande Basin of sandstone, Shale earthy... Drilled and IPd at over 3000 barrels of oil and gas debt and equity offerings given this fact, company. Revealed in a short amount of production ( around 2,000 barrels of oil per day, directly offsetting lease. Merger with Metamaterial proposed by House Republicans, that price would go up to more than 50 % in legal. Is $ 96,515 revitalizing West Texas and their shared Permian Basin expert Geologist, Rich Masterson &! A higher value, ranging from $ 7,000 to $ 58,000 per net acre 200 oil-producing in... Numerous factors Project appears to value that land at $ 30,000 per lease can generate as much as 4,800! Aware of the Yahoo family of brands and it clearly shows the huge amount of potential that operations... Cap stocks to hedge funds and high net worth individuals net ) acres or gas... Oil-Producing counties in Texas a Bone Spring well was drilled and IPd at over 3000 of. Met with growth in operations in New Mexico, Texas and the list may blocked..., are part of the TRCH assets liquids-rich gas per section global implications in selling the Hazel Project be. The Q2 2013 10-Q, the company 's website, it appears investors! For $ 10/acre or less, but the Orogrande in early 2018 an raise. ( single family residential ) lot in no way justify the fall in the Orogrande Project is a play...
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