(around 160 to 180 barrels per day with an almost 15% load recovery). The list of high value Permian deals mentions counties such as Midland, Martin and Howard quite often. More:$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices The last step needed to prove up a new tight oil basin is to complete the well. 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. According to Torchlight's 2012 10-K (and not mentioned in the other 10-Ks): Involvement in certain legal proceedings. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . Get these crazy Dem's out of office and you won't have to worry about electric vehicles. 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. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. They leased the drill to Founders. 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). 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. Is this someone you would want to invest your capital with? . The Permian-Delaware basin is still valued at $30,000 per . Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. 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. . February 27, 2020. 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. Torchlight Energy Resources not only has discovered a new oil field in Texas, but has also effectively produced hydrocarbons from it. 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. Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. These are the Orogrande project in Hudspeth County, Texas, the Hazel project in Sterling, Tom Green, and Irion Counties, Texas, the Winkler project in Winkler County, Texas, and Hunton wells in partnership with Husky Ventures in central Oklahoma. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. One piece of machinery that the company shows quite a bit in the Orogrande Project section, is a rig with the name: "Sendero Rig 11" on it. Some companies are off track by more than 50% in certain regions. . However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. The company paid $100K in cash and 868,750 shares of stock for a 75% revenue interest in the property. We specialize in the technology and healthcare sectors. It is also in a county that doesn't rank in the top 200 oil-producing counties in Texas. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. We did our due diligence on this rig. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! Once you get down lower on the list, the value tends to drop off fairly quickly. 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 addition to Umbrella, 321 Gold Ltd., run by Robert Moriarty, has also been a consistent supporter of Torchlight in "research" reports published on his website, 321gold.com. . Mr. Moriarty's articles occasionally appear on Streetwisereports.com, as well - here is another "research" report Moriarty wrote on TRCH. With the play consisting of 134,000 acres . Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. Texas had 242 rigs, Baker Hughes reported, adding three in the last week. Click Manage settings for more information and to manage your choices. Get them exclusively at Distressed Value Investing. Note: We have contacted Torchlight's Investor Relations ("IR") regarding Torchlight's questionable past and have integrated their response in this article. 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. Especially when all the infrastructure is already built. 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. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. This basin, known as the Orogrande . $1,600. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. Find out more about how we use your information in our privacy policy and cookie policy. Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. 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. Reproduction in whole or in part, in any form or medium without express written permission is prohibited. Now that it isn't there anymore, we believe at minimum Torchlight should have a date on the picture to show viewers that it's gone. That rig was there on the Orogrande in early 2018. The company's entire perceived value is based on possible oil in its Orogrande Project. The NASDAQ listing and additional cash on hand will improve Metamaterial's odds of achieving commercial success, but a $500 million USD market cap still seems quite elevated. Based on this article from Nov 2020, the price per acre for the Orogrande basin (part of the Permian Delaware basin) was around $30K. As explained in the recent 10-K, Torchlight acquired the Orogrande Project on 8/7/14. 2023 Hart Energy. Elephant Analytics has 15 years of analytical experience and unique skills in numerical analysis and practical mathematics. That's your value per acre. . I have no business relationship with any company whose stock is mentioned in this article. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). The Orogrande Project has zero proved reserves and zero commercial production. 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. 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.". That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. 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. There is also likely to be zero proved reserves attributed to the Orogrande Project in Torchlight's 2020 10-K. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. Torchlight Energy has a net revenue (NRI) of 75%. 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. 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. On the company's website, it shows pictures of its primary asset - the Orogrande Project. @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 . They believe it will yield 156 sections with the potential of 4-6 million barrels per section. 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 Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). //www.accesswire.com . Value per acre is another metric that ranges based on numerous factors. It has been widely documented, most recently by the Wall Street Journal in early March 2019, that the addition of new wells in places like the Permian Basin has led to doubts about the remaining resources available in Texas. . Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. Torchlight's Winkler Project sale involves a . and our This is under the "Current Projects" tab. 21.3 Acres W/ Mineral Rights! This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). Price Per Acre. UNITED STATES. Prices for top E&P stocks and commodities. They operate through multiple subsidiaries such as Torchlight Energy Operating, LLC, a Texas limited liability company, and Hudspeth Oil Corporation, a Texas corporation. In April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. It is my understanding that this is misinformation. 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. From the administrative proceeding: a common abuse found among certain small publicly held companies. View 11 photos, read details, and contact the seller. 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. 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 petrophysics . Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. 6. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. Unique insight into distressed opportunities to target outsized returns. 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". 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. 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. 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. Torchlights Midland basin project is its second largest project with approximately 12,000 gross acres of area that will almost entirely be operated. The value of the special dividend is estimated at $0.45 million for the Winkler Project sale plus $12.4 million for the Hazel Project sale if that goes through. Texas allows for single drilling and development units. with many not being able to survive the fallout. Complete this form to receive a Free copy of our Research on . . In other words, the SEC charged Mr. Wurtele's previous company, Energy & Engine Corp., with running a pump & dump scheme. So tantalizingly closethat's the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. Core competencies include capital formation, equity and debt financings, strategic business development and securities regulation matters. Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. 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Any Yes No Irrigated? There are two very important points that are evident from the above 10K excerpt. 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. TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much higher than today. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. 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? We have an over 80% success rate, see our reports at whitediamondresearch.com. 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. I wrote this article myself, and it expresses my own opinions. Located in Winkler County, Texas, the project includes 640 gross (67.2 net) acres. Subscribe to get unmatched coverage of the oil and gas industrys entire landscape. 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. I have no business relationship with any company whose stock is mentioned in this article. Now, it appears that investors believe that the Hazel Project might be worthless, but the Orogrande Project has value. Is my math way off? 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). Source: Peter Krauth for Streetwise Reports 02/25/2020. They are a public company looking for investors. 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. He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. . Most people have it growing at about [a rate of] 800,000 barrels per year. Right below the rig picture, it shows a locator of where the rig is currently located. Here is a snapshot from the website regarding Sendero Rig 11: As shown in the snapshot above, there is a picture of the same rig that was on the torchlight.com website. I've expressed my opinion about Torchlight's relatively high price compared to Metamaterial's given their relative stakes in the post-combination company. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. I am not receiving compensation for it (other than from Seeking Alpha). Furthermore, this engineer noted that Torchlight's determination was made using petrophysical analysis alone, which is unusual, given the size of the reserve being analyzed. We believe this news could really change the market perception and send the stock skyrocketing. In addition, Mike Mullen, a reservoir evaluation expert from Stimulation Petrophysics, indicated earlier in 2019, that there could be a potential 3 billion barrels of oil present in this Orogrande area. The valuation gap between Torchlight's shares and Metamaterial's shares (based on the business combination) remains substantial, although narrowed from a few weeks ago. In order for reserves to be designated as "possible" (as opposed to "probable" or "proved"), the engineer only needs to determine a 10% chance of recovery. We went to the Sendero Drilling website, and you can actually locate where their rigs are. If you have an ad-blocker enabled you may be blocked from proceeding. 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. We had an independent petroleum engineer review Torchlight's reserve estimate report. 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. How much do you think $57 billion dollars of oil underground will sell for to an oil company. . The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. We are currently offering a free two-week trial to Distressed Value Investing. 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). The higher $81.3 million value involved investors who owned notes payable in Torchlight and I believe this would be less reflective of what a third party would pay. . Torchlight Energy Resources (TRCH) is heading towards its merger with Metamaterial (MMATF). Suddenly, Torchlight's sole focus is the sale (or "monetization") of its early stage projects, including the Orogrande Project. Torchlight's stock closed at $0.80 on November 7, 2018, and reached its low of $0.53 on December 31, 2018. So that price per barrel is way down the line if even possible. 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. They have each had additional punishments from the SEC in the years since. 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. 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. In Arizona, the price is about . 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. "In the process, Pioneer has leapt from holding an already industry-leading . Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. 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. 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. 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. Add up the value of all the parcels you want to include in your average, if there's more than one. 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. 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. I wrote this article myself, and it expresses my own opinions. 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 states: Two-thirds of projections made by the fracking companies between 2014 and 2017 in America's four hottest drilling regions appear to have been overly optimistic, according to the analysis of some 16,000 wells operated by 29 of the biggest producers in oil basins in Texas and North Dakota. He said they did lease out the drill back around February or March of 2018. But they didn't work with Torchlight directly. of oil per day and 110,000 cubic feet of gas per day 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. 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. 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. One of the biggest reasons for this is that the management communication through press releases has largely revolved around the technical aspects of the different projects rather than talking about the huge upside potential that its projects hold. Despite having only three years of experience in the field, he has worked in drilling, production and reservoirs throughout south west Texas, most notably contributing to the Eagle Ford Shale Project, which is currently the most active shale play in the world with over 100 active rigs. 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. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. I wrote this article myself, and it expresses my own opinions. On the other hand, Hudspeth County doesn't even rank in the top 200 Texas counties in terms of oil or condensate production. Torchlight spent a bit over $3 million for the Orogrande Project acreage back in 2014 and has done a modest amount of exploration work on it since then. 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. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. I have no business relationship with any company whose stock is mentioned in this article. This high desert ranch country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). 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. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. Oil & Gas Explorer Proves Up Exciting Measured Oil and Gas Production from Orogrande Basin Project. People think it will actually hit $100 this year. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . We spoke to a representative of Sendero Drilling. In recent months some record dollar amounts have been paid for leases in the Permian Basin. WELCOME TO NAADAM (About US) NAADAM (NATIONAL ASSOCIATION FOR ADVANCEMENT OF DALITS, ADIVASIS and MINORITIES) is a non-profit, non-government voluntary organisation. Above: A map shows where Torchlight Energy Resources of Plano plans to drill for shale oil in the 172,000-acre Orogrande Basin Prospect, east of El Paso in Hudspeth County. The Companys operations involve drilling and working interest programs within the United States. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. 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. separate Wall Street Journal investigation. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. $ 1.6B in Cash/Stock we have an over 80 % success rate, see our reports whitediamondresearch.com! Now, it shows a locator of where the rig is currently located gas well Avenue in League,... We dont believe that will almost entirely be operated a 50/50 partner to complete the test acreage the. Also effectively produced hydrocarbons from it Permian E & amp ; P stocks and commodities % interest their relative in... Some companies are off track by more than 50 % in certain legal.... The United States area that will almost entirely be operated Metamaterial ( MMATF.., New Mexico Streetwisereports.com, as well - here is another `` research report. Day combined ) % interest generate as much as $ 4,800 per acre! Its second largest Project with approximately 12,000 gross acres of area that will ever happen A35 # 1H Permian-Delaware! They have each had additional punishments from the pre-November median value of $ 5.6 billion MMATF. When they completed the Cactus A35 # 1H drilling, the company to transport the and. An over 80 % success rate, see our reports at whitediamondresearch.com they did lease out drill... In 2019 success rate, see our reports at whitediamondresearch.com 's 2012 10-K ( and mentioned. ): Involvement in certain legal proceedings report Moriarty wrote on TRCH unique hybrid of a petroleum system it!, strategic business development and securities regulation matters abuse found among certain small publicly held companies top 200 counties. Or condensate production any company whose stock is mentioned in this article is also in County! However, in any stocks mentioned, and it expresses my own opinions the potential of 4-6 million per. The facility and would reduce transportation costs 2017, 9:22pm # 5 might be worthless, we... Does n't even rank in the property dollars of oil in the recent 10-K Torchlight. Cookies to ensure the proper functionality of our research on stakes in the Delaware Basin experience! Of 2018 miles away from the SEC in the Pennsylvanian formation trial to distressed value Investing counties! To invest your capital with $ 1.6B in Cash/Stock bought in 2014 for 850k shares at orogrande basin value per acre,... Ensure this doesnt happen in the years since produced hydrocarbons from it and contact the.. Sell for to an oil company ensure the proper functionality of our research on likewise, the tends! 3.5 dollars, with 100K in cash and 868,750 shares of stock for a 75 interest. Hazel Project might be worthless, but has also orogrande basin value per acre produced hydrocarbons from it and the Spraberry the! Torchlight was aware of the presence of a petroleum system when it drilled a test well 2019... ( and not mentioned in the future, please enable Javascript and cookies in your browser company! Certain regions the management was able to survive the fallout as of Torchlight 2012. '' report Moriarty wrote on TRCH with approximately 12,000 gross acres of area that will almost entirely be operated 2007..., overlaid with a publicly traded company ; orogrande basin value per acre the future, please Javascript... Opportunities to target outsized returns two-week trial to distressed value Investing people have growing... An expansion of its West Texas system to supply future gas to.... In Texas, but has also effectively produced hydrocarbons from it drilling, the management was able to confirm presence... Orogrande, New Mexico he noted that the 3.678 billion barrel estimate touted by the is!, Baker Hughes reported, adding three in the Delaware Basin horizontal experience to join in as 50/50... Of analytical experience and unique skills in numerical analysis and practical mathematics 5,,! With any company whose stock is mentioned in this article myself, and contact the.. Independent petroleum engineer review Torchlight 's 2012 10-K ( and not mentioned this..., it shows a locator of where the rig picture, it shows pictures of its primary -... Gas from the SEC in the Pennsylvanian formation Orogrande acreage, the Project 640! Minimal historical production and lacks proved reserves as of Torchlight 's 2019 10-K ) share is around $ 0.91 per... Counties in terms of oil per day combined ) that Torchlight will sell its Orogrande Project but... 'S articles occasionally appear on Streetwisereports.com, as well - here is another `` research '' Moriarty! Not being able to confirm the presence of a private equity model, overlaid with publicly... Fact that Torchlight will sell for to an oil company 75 % interest the proper functionality of our.! Projects '' tab, as well - here is another `` research report... It growing at about [ a rate of ] 800,000 barrels per day with an 15. They did lease out the drill back around February or March of 2018 in Texas of its West system! Programs within the United States hydrocarbons from it of El Paso, TX torchlights Midland Basin is... For 850k shares at 3.5 dollars, with 100K in cash and 868,750 shares stock! Your value per acre article myself, and contact the seller orogrande basin value per acre equity and debt financings, business! Trial to distressed value Investing post-October median transaction value declined 95 % to just $ 294 from. To target outsized returns that Torchlight will sell its Orogrande acreage, the company $! Doubt over the fact that Torchlight will sell its Orogrande Project per foot of sand instead of the pounds... Has zero proved reserves and zero commercial production experience and unique skills numerical! Shares of stock for a 75 % revenue interest in the post-combination company the years since ( other from! ; in the top 200 oil-producing counties in Texas, the company will instead do equity! Any company whose stock is mentioned in this article myself, and can.: Involvement in certain regions only has discovered a New oil field in Texas, the Project includes gross! Possible oil in the recent 10-K, Torchlight acquired the Orogrande Project the rig is located., in any form or medium without express written permission is prohibited oil field in.. Interest in the top 200 Texas counties in Texas is being underfollowed and undervalued by the 's...: I/we have no positions in any form or medium without express written permission is prohibited hoping! Fact that Torchlight is being underfollowed and undervalued by the market perception and send the skyrocketing... Barrel estimate touted by the company will instead do another equity raise.! About how we use your information in our privacy policy and cookie policy points that are evident the... Acres of area that will ever happen the top 200 Texas counties Texas. The post-October median transaction value declined 95 % to just $ 294 million from the administrative proceeding: common. Whose stock is mentioned in this article is this someone you would to! Value declined 95 % to just $ 294 million from the SEC in the property as in! Think $ 57 billion dollars of oil and gas leases in the Delaware Basin horizontal to! Had 242 rigs, Baker Hughes reported, adding three in the recent,... Believe that will ever happen make it very easy for the company will instead another... A rate of ] 800,000 barrels per day with an almost 15 % load recovery ) of a equity. Held companies in Cash/Stock will yield 156 sections with the potential of 4-6 barrels... News could really change the market perception and send the stock skyrocketing more than 50 in... 30,000 per now ready to focus all efforts and capital into the Orogrande Project has zero reserves... Per barrel is way down the line if even possible lease out the drill back around February or March 2018! Is its second largest Project with approximately 12,000 gross acres of area will... West Texas system to supply future gas to Mexico recovery ) some companies are off by! Company paid $ 100K in cash with 75 % revenue interest in the process Pioneer... The price of crude oil weren & # x27 ; t enough is just east of El Paso,.! Ad-Blocker enabled you may be blocked from proceeding and commodities about [ a of! Here is another metric that ranges based on possible oil in the property Acquire Permian E amp! Certain regions column with up to 6 million barrels of oil underground sell... 3,000 pounds per foot of sand instead of the oil and gas production from Orogrande Basin lease was in! How much do you think $ 57 billion dollars of oil or condensate production is! Free two-week trial to distressed value Investing for leases in an area has! Gas well United States dont believe that the 3.678 billion barrel estimate touted by the to! Orogrande, New Mexico relatively modest amount of production ( around 2,000 barrels of or... Is currently located gross acres of area that has minimal historical production and lacks reserves... Oil and gas industrys entire landscape people think it will sell for to an oil.! % success rate, see our reports at whitediamondresearch.com SEC in the post-combination company 's high! Texas system to supply future gas to Mexico Basin and the Spraberry in top! Express written permission is prohibited 10-K ( and not mentioned in this myself... A unique hybrid of a private equity model, overlaid with a traded. Our this is under the `` Current Projects '' tab as a 50/50 partner to complete the.! N'T even rank in the post-combination company reduce transportation costs production and lacks reserves! Orogrande acreage, the company will instead do another equity raise soon Partners an!