Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. The EIA does not include Hudspeth County (circled below) in its definition of the Permian Basin. They have each had additional punishments from the SEC in the years since. The promoter is often compensated in the form of purportedly unrestricted shares of the company's common stock, which the promoter sells after its touting has attracted investor interest in the company. 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. Pursuant to a settlement between TraDigital IR and Salesparq, LLC, which ownsSmallcapsDaily.com, weve got been employed for a interval from 1/10/2020 1/17/2020 to publicly disseminate particulars about Torchlight Energy Resources, Inc., along with on the Website, e mail and totally different media, together with however not restricted to, Facebook and Twitter. FORM 10-Q (Mark One) x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934. 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. Torchlight's special dividend is likely to have limited value though. Institutions have quietly accumulated the stock and it is a matter of time before the Company delivers a solid result making the stock price go through the roof. We spoke to a representative of Sendero Drilling. Add up the value of all the parcels you want to include in your average, if there's more than one. So that price per barrel is way down the line if even possible. For more information, please see our Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. They operate through multiple subsidiaries such as Torchlight Energy Operating, LLC, a Texas limited liability company, and Hudspeth Oil Corporation, a Texas corporation. Get these crazy Dem's out of office and you won't have to worry about electric vehicles. There were some contingences that need to be completed with Universi. Torchlight Energy Resources Inc. ( Nasdaq: TRCH) has closed the previously announced transaction to acquire 100% woorking interest, 75% net revenue interest in the 172,000 acre Orogrande Basin Prospect. At the current levels, Torchlights current interest in acreage that is developed, is hardly 1% of the total amount of interest of the Company. The Company has an 80% net revenue interest in this region. Information on assets, buyers and sellers, deal values, and more. The company said that it can extrapolate the Cactus well to make 1,500bopd and 11Mmcfpd potentially, or combined 3,300 barrels of oil equivalent per day (boepd), when equated to a 10,000ft lateral. Torchlight still appears significantly overvalued based on the percentage of the post-combination company it will own, although the valuation gap has closed a fair bit over the last few weeks. I have no business relationship with any company whose stock is mentioned in this article. There appears to be some highly inflated expectations floating around social media about this. 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. Database of selected U.S. and international exploration wells. 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. 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 company paid $100K in cash and 868,750 shares of stock for a 75% revenue interest in the property. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. History and geology appear to be in alignment for a new tight oil play. In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. 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. In comparison, Torchlight is trading now at around $1.46 per share. 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. Texas allows for single drilling and development units. 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. The average price of land listings and ranches for sale here is $96,515. I am not receiving compensation for it (other than from Seeking Alpha). This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. With a team of experienced geologists, the Company looks to identify land with heavy oil potential, acquires the same, carries out various experiments and drilling of test wells to determine the oil and gas potential, and eventually sells off the acquisitions to large oil companies. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much . company with a market cap of over $120 million. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. Right now, the drill isn't being used, he said. 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. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. 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 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. 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. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. The Delaware Sub-basin encompasses the Hobbs area of southeastern New Mexico and four counties of West Texas. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. Adjacent leases still sale for $10/acre or less. 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. Torchlight regained compliance with Nasdaq's listing requirements within the required period of time. Privacy Policy. SECURITIES AND EXCHANGE COMMISSION. That's your value per acre. We had an independent petroleum engineer review Torchlight's reserve estimate report. If you have an ad-blocker enabled you may be blocked from proceeding. It is my understanding that this is misinformation. 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. 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. 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". 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. While he did graduate with a B.S. Click Manage settings for more information and to manage your choices. . Looking for more investing ideas like this one? Right now, the average price for a loaf of bread is, approximately, $1.87. This Seeking Alpha article from 2/21/17, says the Hazel Project is worth $150M. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. 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. PLANO, TX / ACCESSWIRE / April 6, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH) ("Torchlight" or the "Company"), today provided an operational update on its Orogrande Basin Project and announced compliance with Texas Governor Greg Abbott's Stay-At-Home Order. In recent years, many such companies have hired stock promoters to tout their shares on stock-picking websites and through mass-mailed e-mail messages (commonly known as "spam"). How much do you think $57 billion dollars of oil underground will sell for to an oil company. 09-30-2022. There are . In Nevada, prices are between $4,000 and $5,500. From a PR on 4/9/18, Torchlight states: Our mission on the Hazel Project was to prove the overall concept of the Wolfcamp horizontal development, increase the value of the acreage and exit at a higher value. 21.3 Acres W/ Mineral Rights! Torchlight's oil and gas properties (and thus its special dividend) appear to have fairly limited value though. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. . 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. They didn't provide any evidence that any facts we include in this article are incorrect. 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. Instead of selling or monetizing the Hazel Project last year, Torchlight did an equity raise. 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 newer shale wells often interfere with the output of older wells, because blasting too many holes in dense rock formations can damage nearby wells and lower the overall pressure, making it harder for oil to seep out. The reason some of these stocks are hidden gems is because they are underfollowed and their excellent potential may be partially or totally obscured from the market. the court entered a default judgment against him in September 2012. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. separate Wall Street Journal investigation. It currently has interests in four oil and gas projects. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. Ready to build zoned SR-43 (single family residential) lot. This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. 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. !, 21.3 acres in Fabens, Texas offered at $200. We have an over 80% success rate, see our reports at whitediamondresearch.com. If you have an ad-blocker enabled you may be blocked from proceeding. On a 10-20 acre producing in the Midland basin what could I expect the value per acre to be? Any Yes No Irrigated? Founders Oil & Gas was designated as the operator of the leases back in 2015. We private zero shares of Torchlight Energy Resources, Inc. 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Some contingences that need to be completed with Universi over 80 % revenue... The EIA does not include Hudspeth County, Texas that need to be alignment... You have an ad-blocker enabled you may be blocked from proceeding cap of over $ million!