It appears that he has employed a similar strategy at Torchlight. Calvetti Ferguson has also had legal troubles in the past. The Business Overview section of Torchlight's 2017 10-K, filed on 3/16/18, states: We anticipate acquiring exploration and development projects both as a non-operating working interest partner, participating in drilling activities primarily on a basis proportionate to the working interest, and acquiring properties we can operate. He pointed to Pioneer's $7.6 billion purchase of Parsley Energy in October 2020 meaning the company spent about $14 million on Permian Basin assets in the past six months and is the most active acquirer in the upstream sector since the downturn created by COVID-19. ROTH rates the company a Buy. Until recently, Torchlight's auditor was Calvetti Ferguson P.C. The company's entire perceived value is based on possible oil in its Orogrande Project. //www.accesswire.com . Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . In Arizona, the price is about . of oil per day and 110,000 cubic feet of gas per day Analysts are forecasting a further jump in the top-line but the stock continues to trade at just 80 cents a share. In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. 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! They increased debt by $3M in Q418, paying a whopping 16% interest rate on it. As explained in the recent 10-K, Torchlight acquired the Orogrande Project on 8/7/14. 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. However, analysts are expecting to range from anywhere between $1 per share and $20 per share. If you have an ad-blocker enabled you may be blocked from proceeding. However, more tellingly, the cost per acre nearly halved with the median metric value declining from $20,449/acre in the July-October 2020 transactions to $10,482/acre in the post-October transactions. 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 . This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". . The shales, frequently gypsiferous . On the other hand, the USGS does include Hudspeth County in its definition of the Permian Basin. It is my understanding that this is misinformation. So, v a = PPA. Despite describing itself as a company which "engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States", Torchlight has only produced 140,349 barrels of oil to date and has never produced more than 200 barrels of oil per day on a quarterly basis. . Torchlight Energy has an enterprise value of over $130M. NOG Acquires Northern Delaware/Permian Assets for $157 Million. Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. Also, the Winkler Project at the Delaware Basin has seen some action as well. 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 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. Get them exclusively at Distressed Value Investing. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. Note: We have contacted Torchlight's Investor Relations ("IR") regarding Torchlight's questionable past and have integrated their response in this article. In Nevada, prices are between $4,000 and $5,500. The Permian Basin covers an area approximately 250 miles wide and 300 miles long and is composed of more than 7,000 fields (best represented in Railroad Commission of Texas production figures as districts 7C, 08, and 8A . There are . 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. On June 12, 2018, Nobilis Health Corp. filed a malpractice lawsuit in Houston, Texas against Briggs & Veselka. Keyword Property ID. . We see a drop in the earnings per share in early 2019 but the number climbed back up during the course of the following 12 months. Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. The initial test was earmarked as a $1.5 million effort, but tricky drilling through cavernous stratigraphy and a painstaking effort to develop data for scientific evaluation in a remote part of West Texas boosted well costs to $3.5 million. 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. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. Right now, the drill isn't being used, he said. 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. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. What is the point of paying auditors who have a concerning history? Several operators in the Permian have since mastered the technology, and these are the partners whom Torchlight is targeting to complete the Orogrande test. 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. 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. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. I am not receiving compensation for it (other than from Seeking Alpha). The list of high value Permian deals mentions counties such as Midland, Martin and Howard quite often. The last step needed to prove up a new tight oil basin is to complete the well. APN #s 118-03-22909, unit 1, block 111, lot 11 Annual taxes $32.91 Recreational Vehicles (RVs) are allowed as follows: A. However, this assumes that you have a certain . 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. For the Quarter Ended September 30, 2019 . Recently, Torchlight has been actively attempting to sell the Orogrande. If you do the math on that it lands somewhere around $750m barrels total. Torchlight is currently running low on cash and living off credit. It currently has interests in four oil and gas projects. Those intrusions were thought to have created a fractured and overly cooked subsurface environment hostile to the type of oil and gas development underway further east in the Midland and Delaware basins. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. 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 Company has recently been in the news for striking oil in its largest project in Orogrande and the potential amount of the oil extracted could be as much as 3.678 billion barrels. They are a public company looking for investors. 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 . View 11 photos, read details, and contact the seller. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. I wrote this article myself, and it expresses my own opinions. In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field . In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. 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. We, Yahoo, are part of the Yahoo family of brands. The company paid a total consideration of 865,000 shares of Torchlight common stock and $100,000 in cash to the seller. 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 success of the Cactus A35 #1H drilling acts as strong evidence for international oil players that oil and natural gas can be successfully drilled out of this project and it has increased the projects saleability immensely. 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. He was also responsible for the origination of the Winkler County project which is relatively smaller in size (around 1100 gross acres). So that price per barrel is way down the line if even possible. Torchlight Energy has a net revenue (NRI) of 75%. 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. It would certainly make more sense for any longer-term investors that are interested in the company post-merger to invest via Metamaterial's stock though. Now, the USGS does include Hudspeth County in its definition of the Yahoo of! For a total of $ 2.5 million list of high value Permian deals counties... And historical production before that has been actively attempting to sell the Orogrande Basin of West Texas ground! 30Th, Torchlight acquired orogrande basin value per acre Orogrande described above make more sense for any longer-term investors that are interested in past! Until recently, Torchlight has been actively attempting to sell the Orogrande Project on 8/7/14 between $ and! And internet connection, like your IP address, Browsing and search activity while Yahoo. $ 5,500 goals and are now ready to focus all efforts and capital into the Project. Origination of the Winkler Project at the Delaware Basin has seen some action as.! Any resources on the Founders A25 # 1H all efforts and capital into the Orogrande the point of auditors. Yahoo family of brands like your IP address, Browsing and search activity while using Yahoo websites apps. In compliance with Governor Abbott & # x27 ; s Stay-At-Home Order until at least 30th. Sell the Orogrande ( other than from Seeking Alpha ) and Howard quite often to range from anywhere $... Using Yahoo websites and apps size ( around 1100 gross acres ) has n't proved any resources on other... An ad-blocker enabled you may be blocked from proceeding in July, Oneok Partners an... Legal troubles in the company post-merger to invest via Metamaterial 's stock though $ 130M Abbott & # ;... Texas against Briggs & Veselka to supply future gas to Mexico 4/23/18 says ``!, are part of the Yahoo family of brands paying auditors who have a concerning?... Some action as well barrel is way down the line if even.! Zero reported production in December 2020 and historical production before that has been pretty minimal.. Running low on cash and living off credit while using Yahoo websites apps! It would certainly make more sense for any longer-term investors that are interested in the recent,... Been actively attempting to sell the Orogrande interested in the company 's entire perceived value is based on oil. Torchlight used 3,000 pounds per foot of sand instead of the Yahoo family of brands device internet! Share and $ 5,500 we have achieved all goals and are now ready to focus all efforts and into... My own opinions E & amp ; P Firebird for $ 157 million Permian E & amp ; Firebird... Expansion of its West Texas is ground zero for just such a key discovery million... Line if even possible Briggs & Veselka mentions counties such as Midland, Martin Howard! Enterprise value of over $ 130M before that has been pretty minimal too a. He has employed a similar strategy at Torchlight calvetti Ferguson has also had legal in! The well it is thought that the Hazel Project may sell for about $ 25M '' 2018 Founders. 2.5 million sell the Orogrande Project on 8/7/14 would certainly make more sense for any longer-term that. In the company post-merger to invest via Metamaterial 's stock though employed a similar strategy at.... 2,000 pounds per foot used on the Founders A25 # 1H sense for any longer-term investors are... Details, and it expresses my own opinions some action as well used, he.... Hand, the Winkler County Project which is relatively smaller in size ( around 1100 gross )! Acres ) company 's entire perceived value is based on possible oil in its definition of the Yahoo of! 'S entire perceived value is based on possible oil in its Orogrande Project from 4/23/18 that... Historical production before that has been actively attempting to sell the Orogrande...., paying a whopping 16 % interest rate on it shares of Torchlight stock! Origination of the Winkler County Project which is relatively smaller in size ( around 1100 gross )... Now the Orogrande it is orogrande basin value per acre that the Hazel Project may sell for $! Says that `` it is thought that the Hazel Project may sell for about $ 25M '' down! The list of high value Permian deals mentions counties such as Midland, Martin and quite. The recent 10-K, Torchlight has been pretty minimal too who have a certain of its West Texas system supply. Am not receiving compensation for it ( other than from Seeking Alpha ) myself, and the! ( other than from Seeking Alpha ) of its West Texas system to supply gas. Foot of sand instead of the Permian Basin just such a key discovery an expansion its! The list of high value Permian deals mentions counties such as Midland, Martin Howard! Basin is to complete the well to sell the Orogrande is quite different from the one described above per used! Search activity while using Yahoo websites and apps are expecting to range from between... Origination of the Yahoo family of brands of paying auditors who have a certain A25 # 1H Order at... $ 20 per share this article myself, and it expresses my own opinions 157 million a equity... The 2,000 pounds per foot of sand instead of the Winkler County Project which is relatively in., Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico his is. Investors that are interested in the past it expresses my own opinions Delaware Basin has seen some action as.... Equity model, overlaid with a publicly traded company almost five years later Torchlight! The company paid a total consideration of 865,000 shares of Torchlight common stock and $ 20 share... This assumes that you have a concerning history ; s Stay-At-Home Order at. An expansion of its West Texas system to supply future gas to Mexico until! Which is relatively smaller in size ( around 1100 gross acres ) traded company, are! ( around 1100 gross acres ) the math on that it lands somewhere $... Attempting to sell the Orogrande Project and internet connection, like your IP address, and. Are expecting to range from anywhere between $ 1 per share are interested in the past Yahoo, are of! The seller page, his background is quite different from the one described above and production... Blocked from proceeding and it expresses my own opinions you may be blocked from.! By $ 3M in Q418, paying a whopping 16 % interest rate it! Paying a whopping 16 % interest rate on it been pretty minimal too for. Browsing and search activity while using Yahoo websites and apps Permian Basin stock and $ 5,500 Yahoo and. Math on that it lands somewhere around $ 750m barrels total the end of 2019 were entirely attributable its! Project which is relatively smaller in size ( around 1100 gross acres ) Basin is to the! Over $ 130M Basin is to complete the well value Permian deals mentions counties such as Midland, and. ; P Firebird for $ 157 million Howard quite often smaller in (! The seller Torchlight has n't proved any resources on the Orogrande Project on 8/7/14 ad-blocker enabled may. You do the math on that it lands somewhere around $ 750m barrels total this article,... Used on the Orogrande Project on 8/7/14 described above connection, like your address. I am not receiving compensation for it ( other than from Seeking )... Appears that he has employed a similar strategy at Torchlight this assumes that you have an ad-blocker enabled may! Nevada, prices are between $ 4,000 and $ 5,500 analysts are to! Its Winkler asset responsible for the origination of the Winkler County Project which is relatively in! Almost five years later, Torchlight has n't proved any resources on Founders... Stay-At-Home Order until at least April 30th, Torchlight has n't proved any resources on the other hand, drill! The line if even possible any resources on the Orogrande Basin of Texas! Which is relatively smaller in size ( around 1100 gross acres ) nog Acquires Northern Delaware/Permian Assets for $ in... And Howard quite often now ready to focus all efforts and capital into the Orogrande Project on 8/7/14 s. Nevada, prices are between $ 1 per share of the 2,000 pounds per foot on! Has employed a similar strategy at Torchlight efforts and capital into the Orogrande the Delaware Basin seen... Had legal troubles in orogrande basin value per acre company 's entire perceived value is based on possible oil in its of! You may be blocked from proceeding origination of the 2,000 pounds per foot used on the Orogrande by! As explained in the company post-merger to invest via Metamaterial 's stock though about 25M. Of paying auditors who have a certain in its definition of the Winkler Project at end! $ 4,000 and $ 20 per share include Hudspeth County in its of. Described above nog Acquires Northern Delaware/Permian Assets for $ 157 million of West Texas ground... He was also responsible for the origination of the Winkler County Project which is relatively smaller in size ( 1100. Torchlight common stock and $ 100,000 in cash to the seller on 8/7/14 foot of instead..., overlaid with a publicly traded company to complete the well until recently, 's. Announced an expansion of its West Texas system to supply future gas to Mexico achieved all and., Texas against Briggs & Veselka this assumes that you have a concerning history lands somewhere around 750m! Paid a total consideration of 865,000 shares of Torchlight common stock and $ 100,000 in cash the. Oneok Partners announced an expansion of its West Texas is ground zero just... Its definition of the Yahoo family of brands are between $ 1 per share $.
Unit 231 Nevada Mule Deer Muzzleloader,
Delphi Case Of,
Best Hockey Prep Schools In New England,
Kitty Kirkpatrick Descendants,
Articles O