MissionIR would like to highlight
Torchlight Energy Resources, Inc. (
NASDAQ:TRCH), a high growth oil and gas Exploration and Production (E&P) company primarily focused on the acquisition and development of highly profitable domestic oil fields. Leveraging a diverse portfolio, carefully selected interests, and a strong management team are pillars of Torchlight's broader success strategy.
In the company’s news,
Torchlight Energy Resources, Inc. (NASDAQ: TRCH) announced that the Orogrande Development Committee, which consists of members of the project operator, Torchlight and consulting geologist Rich Masterson, has elected to move forward on planning the next phase of drilling in the Orogrande Project. Following this decision, the project operator is expected to permit three new wells, beginning with the University Founders B-19 #1 well, to be drilled vertically for test purposes. These new wells will be designed with sufficient casing size to support lateral entry into any pay zones encountered during testing – including pay zones previously observed in the existing Cactus well.
“We are pleased that the project operator is underway on next steps in evaluating our Orogrande Project,” Will McAndrew III, chief operating officer of Torchlight, stated in the news release. “Drilling additional test wells is the appropriate next action, providing data necessary for validation of the play and the development plan for the entire 168,000 acres. Our principal strategy is to create control data by strategically placing wells across the acreage and thus creating a development thesis for the entire basin.”
Field operations stemming from this agreement are set to begin within 90 days and in line with the development agreement. Last September, Torchlight announced entry into a definitive agreement with Founders Oil and Gas, LLC of Midland, Texas, through which Founders will contribute $50 million in development capital by 2017 – including a $5 million reimbursement for initial project costs – in exchange for 50 percent working interest in the Orogrande Project. Following the commencement of new drilling operations, Torchlight will receive a payment of $500,000 resulting from this partnership.
“The capital and expertise being provided by our operating partner has set the stage for continued value creation for Torchlight and our shareholders,” concluded McAndrew.
Currently, Torchlight owns 95 percent working interest in the 168,000 acre Orogrande Project, which is located in Hudspeth County, Texas. The company is targeting 1,300 feet of pay at a depth of approximately 4,000 to 6,100 feet. In prior testing, Torchlight utilized the Rich A-11 well to gather key data for its field development thesis, but a poor cement bond discovered during testing prevented a cost-effective production test of the project’s primary pay zones. Repairing these defects was determined to be economically unfeasible, and, as a result, the development committee approved plans for drilling of the next wells with larger casings that can be utilized for both testing and commercial production moving forward.
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
To sign up for The MissionIR Report, please visit http://MissionIR.com
To connect with MissionIR via Facebook, please visit http://Facebook.com/MissionIR
To connect with MissionIR via Twitter, please visit http://Twitter.com/MissionIR
Please read FULL disclaimer on the MissionIR website: http://Disclaimer.MissionIR.com
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
