would like to highlight Torchlight Energy Resources, Inc.
), 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.
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