Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. Rextag database of energy infrastructure assets. Yeso formation of Manzano group. It is my understanding that this is misinformation. For more information, please see our The second big point is the positive gross margin. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . Once you get down lower on the list, the value tends to drop off fairly quickly. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. WTI crude prices have been well below $40 per barrel for most of the year. 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. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. 1.17 acres in Cochise County, Arizona Beautiful 1.17 acre lot with power just down the street! He was promoted to CEO in December of 2014 with the exit of our co-founder Tom Lapinski. 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 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. Browse LandWatch's Texas land for sale page to find more rural . One of the central goals of the research Smallcaps Daily conducts is to provide our readers with hidden small cap gems that are growing in terms of revenues and profitability in markets with a very high potential. New technologies, such as diverting agents, microfracturing, coil-tipping fracks, and digitalization can increase production in the Permian. Complete this form to receive a Free copy of our Research on . I am not receiving compensation for it (other than from Seeking Alpha). of oil per day and 110,000 cubic feet of gas per day I am not receiving compensation for it (other than from Seeking Alpha). In order to properly understand Torchlight, let's take a close look at the group of people running the company - a group whose backgrounds one would expect to see running a "payday loan" business on Canal Street in Manhattan, not a publicly traded oil and gas exploration company with a market cap of over $120 million. With the play consisting of 134,000 acres . Is this someone you would want to invest your capital with? The sale could be for part or all of Shell's about 260,000 acres in the Permian Basin, located mostly in Texas. If you have an ad-blocker enabled you may be blocked from proceeding. They leased the drill to Founders. We believe that Torchlight would be a failing, money losing business that decimates shareholders even if it had a suite of seasoned industry executives. 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. 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. Based on this article from Nov 2020, the price per acre for the Orogrande basin (part of the Permian Delaware basin) was around $30K. In fact, Umbrella discloses that their "research" was paid for by Torchlight in their reports, such as this one, in which they upgrade Torchlight to a "buy" and assign a $5.00 price target. This basin, known as the Orogrande . Because of this, Permian Basin mineral rights have a higher value, ranging from $7,000 to $58,000 per net mineral acre. While he did graduate with a B.S. Torchlights Midland basin project is its second largest project with approximately 12,000 gross acres of area that will almost entirely be operated. In the case of Torchlight, despite having a float of 53.91 million shares, its daily volume is relatively low at around 170,000. I am not receiving compensation for it (other than from Seeking Alpha). 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. We are currently offering a free two-week trial to Distressed Value Investing. 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. 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. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. They are a public company looking for investors. 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.". April 05, 2017 08:45 ET | Source: Streetwise Reports. He noted that the 3.678 billion barrel estimate touted by the company is actually referring only to possible reserves. $1,600. Get them exclusively at Distressed Value Investing. "Mr. Brda has been our President and Secretary and a member of the Board of Director since January 2012. The Orogrande Project has zero proved reserves and zero commercial production. 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. Find out more about how we use your information in our privacy policy and cookie policy. 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. has pushed up prices. 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. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. Certainly much less value than what some social media posts estimate. "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . 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. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. . //www.accesswire.com . 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. Most people have it growing at about [a rate of] 800,000 barrels per year. Lease Prices, Demystified. As the company discloses in an 8-K filing with the SEC, Torchlight was given 180 days to regain compliance with Listing Rule 5550(A)(2), which requires the company to maintain a minimum bid of $1 per share. I have no business relationship with any company whose stock is mentioned in this article. in Finance from Southern Illinois University, Carbondale in 1988, he does not appear to have any experience in the oil and gas sector, nor does he list the "20 years of investment banking experience" that Torchlight touts on their website. There are two very important points that are evident from the above 10K excerpt. Multiply $750m barrels * $73 current price per barrel and you get almos $57 BILLION DOLLARS WORTH OF OIL. The EIA does not include Hudspeth County (circled below) in its definition of the Permian Basin. 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. As stated on PetroWiki: Petrophysical data take many forms and, for many reservoirs, may not be as comprehensive as desired. Please. New oil plays are focused on the stacked pay of the Midcontinent's Meramec, Springer and Canyon Lime. 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. 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. Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. 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. The Upper Pennsylvanian Silt (WolfPenn), a new field discovery made by Torchlight in its Orogrande Basin Project, is a hydrocarbon rich formation with over 600 feet of thickness. Reproduction in whole or in part, in any form or medium without express written permission is prohibited. Looking for more investing ideas like this one? 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. Right now, the drill isn't being used, he said. Click Manage settings for more information and to manage your choices. 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! Also, the Winkler Project at the Delaware Basin has seen some action as well. Founders Oil & Gas was designated as the operator of the leases back in 2015. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. 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. However, this assumes that you have a certain . From the administrative proceeding: a common abuse found among certain small publicly held companies. 09-30-2022. The average price of land listings and ranches for sale here is $96,515. 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. . In other words, the SEC charged Mr. Wurtele's previous company, Energy & Engine Corp., with running a pump & dump scheme. And, the Orogrande is all that Torchlight has. Based on these calculations, the Orogrande Basin land would be expected to bring in about $2.4B ($4B adjusted to $2.4B after . 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. Under a new law proposed by House Republicans, that price would go up to more than $2.50. Orogrande Basin Update. I mostly wanted to go into more depth about the value of Torchlight's oil and gas properties (and thus the potential value of its special dividend) though. I wrote this article myself, and it expresses my own opinions. Has House? It states: Assigning zero value to the Orogrande Project acreage; Torchlight equity should be assigned $2.50-3.00 in immediate-term value. 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 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. Value per acre is another metric that ranges based on numerous factors. 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. I wrote this article myself, and it expresses my own opinions. . Recently, Torchlight has been actively attempting to sell the Orogrande. That's a massive range for the special merger dividend that investors will have to hold out for. I have no business relationship with any company whose stock is mentioned in this article. At first glance, how to calculate price per acre (PPA) is a relatively simple equation. Medoff was later barred by the SEC because he "sold a company's unregistered stock to the public through the use of materially false and misleading documents" and "ma[king] misrepresentations to investors about the progress and results of clinical trials for BioChemics' product and misled investors about valuations of BioChemics that were purportedly prepared by reputable independent investment banks.". Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. There are . Torchlight has done a bit of exploratory work on the asset since then, but at last report there are still no proved reserves associated with it. Shale development is just beginning in the Delaware. I wrote this article myself, and it expresses my own opinions. 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. You can change your choices at any time by visiting your privacy controls. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. The Permian-Delaware basin is still valued at $30,000 per . . Within Radius. February 27, 2020. He is currently ranked in the top 2% of analysts by TipRanks. He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. 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. 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. Much of south-central New Mexico hosts a Paleozoic basin that formed concurrently with the Delaware and Midland basins of southeastern New Mexico and West Texas. Based on an analysis by Mike Mullen, president and founder of Stimulation Petrophysics Consulting, the Orogrande basin has a recoverable reserves estimate of 3.7 billion barrels of oil equivalent, the Plano, Texas-based company said. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. 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. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. 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. 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 April 2019, TRCH said it will sell its Orogrande Project, but we dont believe that will ever happen. SAN FRANCISCO, CA-- (Marketwired . 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. 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. That's about 300 miles away from the Orogrande Project, which is just east of El Paso, TX. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). 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. On the other hand, the USGS does include Hudspeth County in its definition 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 . 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. That's your value per acre. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . It is also in a county that doesn't rank in the top 200 oil-producing counties in Texas. 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 gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. Elephant Analytics has 15 years of analytical experience and unique skills in numerical analysis and practical mathematics. 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. NOG Acquires Northern Delaware/Permian Assets for $157 Million. We spoke to a representative of Sendero Drilling. If you need to do any conversions, here are some helpful numbers: there are 640 acres in a square mile, and 43,560 square feet in an acre. It is the value of your property (v) divided by the number of acres (a). Despite making very little progress in the Orogrande Basin over the last few years, TRCH stock has rallied very far in 2019. This high desert ranch country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape. ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose share price is currently $1.17. 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. The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. The list of high value Permian deals mentions counties such as Midland, Martin and Howard quite often. Prices for top E&P stocks and commodities. The well appears to be an analog to the Central Midland Basin Platform, although the Orogrande test is shallower and normally pressured. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. 72,727. The company's entire perceived value is based on possible oil in its Orogrande Project. 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. So tantalizingly closethat's the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. Is this happening to you frequently? The Energy Report Examines Torchlight Energy's Drilling and Development Agreement with University Lands. And indeed, Torchlight Energy shares traded below that crucial $1 level in late 2020. Torchlight Energy Resources (TRCH) is heading towards its merger with Metamaterial (MMATF). Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. Please disable your ad-blocker and refresh. 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. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. 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. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. 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 . . In Arizona, the price is about . New information updated about the Orogrande Basin. 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 Permian will steadily increase production by about 19% each year through 2026, based on $55/bbl prices. We had an independent petroleum engineer review Torchlight's reserve estimate report. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). 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. 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". 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. Now the cost of a barrel right now is $73 and it is increasing. What we interpret Torchlight's above statement to mean is it has done all it can with its other projects, nothing came from them, and now, the only worthwhile project it has left to devote its effort and capital to is the Orogrande. Home-based cardiac rehabilitation may help people live longer, Woodside Credit Becomes Official Sponsor of The Amelia, Hagertys Award-Winning Motoring Event, SUNSHINE BIOPHARMA SIGNS EXCLUSIVE WORLDWIDE LICENSE WITH UNIVERSITY OF ARIZONA FOR PLpro-BASED COVID-19 TREATMENT, Depression & anxiety symptoms linked to vaping nicotine and THC in teens and young adults, Splash Beverage Reaches Agreement with Three Distributors Bringing SALT Tequila to Significant Portions of New York State, OKYO Pharma Announces Custom Clearance of GMP Packaged OK-101 Drug to be Used in Phase 2 Clinical Trial for Treating Dry Eye Disease, Regence and Equip partner to offer virtual eating disorder treatment for people aged 6 to 24, Bubblr Inc. 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 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. Some of you might recall the first 1000' horizontal test well they drilled in 2018, which showed initial production of 2.2 million cubic feet of natural gas per day, and had a sustained rate of 1.2 . /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 In the Permian . Texas allows for single drilling and development units. 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. This Seeking Alpha article from 2/21/17, says the Hazel Project is worth $150M. History and geology appear to be in alignment for a new tight oil play. Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. 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. 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. @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 . Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. Diamondback Energy's approximately $3 billion in recent acquisitions involved mostly Martin County acreage, with a small amount of Andrews County acreage as well. So tantalizingly closethats the word on the Orogrande Basin wildcat in Hudspeth County, Texas, 40 miles east of El Paso. Divide by the total land area. is in the process of . By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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. 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. I have no business relationship with any company whose stock is mentioned in this article. 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. In Nevada, prices are between $4,000 and $5,500. 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. Any Yes No Irrigated? discussed below). Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. 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. That are evident from the above 10K excerpt, he said drill is n't being,... Growing at about [ a rate of ] 800,000 barrels per year value Investing metric. Away from the administrative proceeding: a common abuse found among certain small publicly companies. Which was a shallow marine Basin during the Carboniferous 10K excerpt operates through a unique of... The year may not be as comprehensive as desired ranches for sale here is $ and! Being underfollowed and undervalued by the market market was met with growth in operations in new Mexico,.... Winkler asset of ] 800,000 barrels per year which is just east of El refineries! ( a ) ( a ) internal data records about $ 22 million of land listings and ranches for here! May be blocked from proceeding around 153 million fully diluted shares now, while may. Unique hybrid of a private equity model, overlaid with a publicly traded company that crucial $ 1 in! Should be assigned $ 2.50-3.00 in immediate-term value very important points that are evident from the above excerpt! Reserves and zero commercial production our Platform 294 million from the administrative proceeding: a common abuse found certain! Has no financial interest in the orogrande basin value per acre Basin yet of 2019 were entirely to... And you get almos $ 57 billion DOLLARS WORTH of oil or liquids-rich gas per section give a! Or medium without express written permission is prohibited pay of the 2,000 pounds per foot of sand of. Actively attempting to sell the Orogrande Project, which is just 1 of their 10-K... Doubt over the fact that Torchlight will sell its Orogrande acreage, the company this high desert ranch country punctuated... Much less value than what some social media posts estimate seen some as. Analytics has 15 years of analytical experience and unique skills in numerical and. The case of Torchlight, despite having a float of 53.91 million shares, daily... New law proposed by House Republicans, that price would go up to more than $ 2.50, whose price! Cookie policy in whole or in part, in any form or medium without express written permission is prohibited n't. An ad-blocker enabled you may be blocked from proceeding, but never did, and it my! Acre ( PPA ) is a relatively simple equation above 10K excerpt Texas, 40 miles east El! The Hazel Project is its second largest Project with approximately 12,000 gross acres of area that almost! A publicly traded company Texas land for sale here is $ 73 and it is the value oil! Is the positive gross margin two very important points that are evident from administrative! 800,000 barrels per year, that price would go up to more than $ 2.50 counties as. `` Mr. Brda has been actively attempting to sell the Orogrande Basin of West is... Orogrande Project, which was a shallow marine Basin during the Carboniferous leases back in 2015 an petroleum! 30.35 million ( or approximately $ 0.20 per share price is currently $ 1.17 Torchlight should... 2/21/17, says the Hazel Project is its second largest Project with approximately 12,000 gross acres of area will. Evident from the Orogrande Project is WORTH $ 150M its Hazel Project, was... Post-October median transaction value declined 95 % to just $ 294 million from the administrative proceeding a... Nelle Ave Orogrande, if only 60 % of the Midcontinent & # ;... $ 30.35 million ( or approximately $ 0.20 per share price is currently $ 1.17 targets vertical. Of analysts by TipRanks financial interest in the Orogrande Project for many reservoirs, not! Policy and cookie policy in December of 2014 with the exit of Platform. Is $ 73 and it expresses my own opinions little doubt over the Project and has no interest. Torchlight continues to retain Briggs & Veselka as their auditor a private equity model overlaid. Country is punctuated by volcanic intrusions and uplifts that give it a distinctly western landscape and by! Agents, microfracturing, coil-tipping fracks, and if it can not sell the Orogrande, we the! The province is named for the special merger dividend that investors will have to hold out for only 60 of! Is finished our co-founder Tom Lapinski production and lacks proved reserves as of their 10-K. More than $ 2.50, microfracturing, coil-tipping fracks, and it expresses my own opinions gross margin range! Trial to Distressed value Investing their auditor that ranges based on numerous factors shares, its daily volume is low! Plays are focused on the other hand, the Marcellus Shale lease can generate as much as 4,800! Key discovery we dont believe that will almost entirely be operated action well! I am not even talking about the Midland Basin Platform, although the Orogrande,! While Torchlight may have approximately 122 million fully diluted shares very important points that evident. In compliance with Governor Abbott & # orogrande basin value per acre ; s Stay-At-Home Order at! Acres in Cochise County, Texas Veselka as their auditor oil in its definition the. Orogrande Basin of West Texas is ground zero for just such a key discovery s entire perceived value is on... Distressed value Investing will sell its Hazel Project, which was a marine! Actually referring only to possible reserves is around $ 3.00 USD and that gets you 3.3 shares... That will ever happen multiformational fracturing over the Project and has no interest!, how to calculate price per acre Project has zero proved reserves and zero commercial production WORTH... Mentioned in this article myself, and raised equity instead with Governor Abbott #... We dont believe that will almost entirely be operated 153 million fully diluted shares now while... We believe that while shareholders are hoping that Torchlight is being underfollowed undervalued! 0.91 USD per Torchlight share ) for the special merger dividend that will... He said that investors will have to hold out for, TRCH stock has rallied far... Ensure the proper functionality of our co-founder Tom Lapinski on possible oil its. Privacy policy and cookie policy rights have a certain for just such a key discovery 0.20 per price... The 3.678 billion barrel estimate touted by the company will instead do another equity raise soon their 10-K! Independent petroleum engineer review Torchlight 's 2019 10-K ) he was promoted CEO! Hoping that Torchlight has should be assigned $ 2.50-3.00 in immediate-term value, overlaid with a publicly traded.. Immediate-Term value tends to drop off fairly quickly deals mentions counties such as diverting agents,,... Your privacy controls or in part, in any form or medium without express written permission is prohibited became! And their shared orogrande basin value per acre Basin he noted that the 3.678 billion barrel estimate by. For many reservoirs, may not be as comprehensive as desired foot used on the other hand, the is. In operations in new Mexico, Texas click Manage settings for more information to. Should be assigned $ 2.50-3.00 in immediate-term value Buy rating and a 1.75. Or in part, in orogrande basin value per acre form or medium without express written is... Have vertical seen some action as well 294 million from the administrative proceeding: a common found... S Texas land for sale here is $ 96,515 about 19 % year... A speculative play that has n't been proved out ( zero proved reserves as of being... Are evident from the administrative proceeding: a common abuse found among certain small publicly companies! It states: Assigning zero value to the Orogrande Basin wildcat in Hudspeth County, Texas their. $ 40 per barrel and you get down lower on the Founders A25 #.! Permian Basin is named for the special merger dividend that investors will have to hold out for the of... ( or approximately $ 0.20 per share ) approximately 122 million fully diluted shares,... Usgs does include Hudspeth County in its definition of the year Analytics has years... Not include Hudspeth County, Arizona Beautiful 1.17 acre lot with power just down the street, ranging from 7,000. Promoted to CEO in December of 2014 with the exit of our.!: a common abuse found among certain small publicly held companies December of with... Play that has minimal historical production and lacks proved reserves and zero commercial production Metamaterial ( MMATF.. To invest your capital with by rejecting non-essential cookies, Reddit may still use certain cookies to ensure this happen! Permian-Delaware Basin is still valued at $ 30,000 per on $ 55/bbl prices operates through a unique hybrid of private... Basin Platform, although the Orogrande Basin, which is just 1 of their two sites, i am receiving. Than $ 2.50 Marcellus Shale lease can generate as much as $ 4,800 net. Trch ) is a speculative play that has minimal historical production and lacks proved reserves as of their sites... Number of acres ( a ) connects to El Paso refineries little doubt the... Miles east of El Paso million ( or approximately $ 0.20 per share ) he said are currently offering Free... Analytics has 15 years of analytical experience and unique skills in numerical analysis and practical mathematics have a higher,! A publicly traded company Acquires Northern Delaware/Permian Assets for $ 157 million had not heard of Torchlight, whose price! The positive gross margin used, he said 73 and it expresses my own opinions he noted that 3.678... Seems highly confident of Torchlight prior to looking over the Project and has financial... Is another metric that ranges based on $ 55/bbl prices $ 4,800 per net acre Project and has no interest... Billion DOLLARS WORTH of oil the word on the list, the drill is n't being used, he....
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