Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . In 2018 a Santa Fe firm that places bids for anonymous investors bid more than $95,000 per acre for a tract of U.S. government land on the New Mexico side of the Basin. Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. The company's entire perceived value is based on possible oil in its Orogrande Project. In the Permian . To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. But they didn't work with Torchlight directly. Prices for top E&P stocks and commodities. Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. Value per acre is another metric that ranges based on numerous factors. 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. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. of oil per day and 110,000 cubic feet of gas per day Reddit and its partners use cookies and similar technologies to provide you with a better experience. Disclosure: I am/we are short TRCH. However, this assumes that you have a certain . By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. company with a market cap of over $120 million. Please disable your ad-blocker and refresh. Torchlights Midland basin project is its second largest project with approximately 12,000 gross acres of area that will almost entirely be operated. Get them exclusively at Distressed Value Investing. 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. As explained in the recent 10-K, Torchlight acquired the Orogrande Project on 8/7/14. This required Mr. Brda to file an affidavit describing his involvement in the American Pallet Leasing ("APL") scheme: Source: John Brda Affidavit, accessed via PACER, The two individuals Mr. Brda did business with at APL were Craig Medoff and Curt Kramer. Ready to build zoned SR-43 (single family residential) lot. There are laws that keep them from lying, that's why they call them 'possible', but when it comes to rocks a mile under the ground, it's easy to say you see things that are promising. Founded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. . In 2016, the firm settled a class action lawsuit in Toronto, Canada relating to publishing falsified financials for Nobilis Healthcare Corp. Calvetti Ferguson agreed to pay $2 million to settle the suit, which also released them from another class action lawsuit in Texas for the same actions. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. Washington, D.C. 20549 . "In the process, Pioneer has leapt from holding an already industry-leading . We have been paid $25,000 (CASH) for & have been paid 0 shares of restricted frequent shares. Any Yes No . New information updated about the Orogrande Basin. Right below the rig picture, it shows a locator of where the rig is currently located. We are short Torchlight Energy Resources, Inc. (TRCH) because we believe it is a classic pump-and-dump run by a questionable management team in our opinion, with some of the leadership having previous run-ins with securities regulators. One of the positive aspects about the Midland basin is that all field services are available within very close proximity to the acreage including oil and gas pipelines. The Companys operations involve drilling and working interest programs within the United States. We, Yahoo, are part of the Yahoo family of brands. At first glance, how to calculate price per acre (PPA) is a relatively simple equation. The answer is that Torchlight did not make its way onto the public markets through a conventional IPO. As stated on PetroWiki: Petrophysical data take many forms and, for many reservoirs, may not be as comprehensive as desired. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 As a result of the sudden progress and M&A hopes, Torchlight's stock has appreciated 200% year-to-date, closing at $1.59 per share on April 23, 2019. What is the point of paying auditors who have a concerning history? Our optimism about Torchlight is re-emphasized when we look at the evolution of the institutional ownership of the Company side-by-side along with the growth in its price. It doesnt end here. 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. On the company's website, it shows pictures of its primary asset - the Orogrande Project. As of this filing, we continue to maintain the leases in good standing and continue to market the acreage in an effort to focus on the Orogrande Project. separate Wall Street Journal investigation. 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. 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. The deal is a major move for Shell, which produces more than 175,000 barrels of oil per day in the Permian Basin, as it faces pressure to reduce its oil and gas production and produce more clean . 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. Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. That's a massive range for the special merger dividend that investors will have to hold out for. After 2008, Permian operators began horizontally exploring Permian Wolfcamp benches from A to D, the latter of which is also referred to as the late Pennsylvanian-aged Cline Shale. It is my understanding that this is misinformation. 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. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. 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. This is clearly the sign of a big investment opportunity in the stock. 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 comparison, Torchlight is trading now at around $1.46 per share. The Energy Report Examines Torchlight Energy's Drilling and Development Agreement with University Lands. For the Quarter Ended September 30, 2019 . However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. Click Manage settings for more information and to manage your choices. A tiny sum, also considering that oil prices were much higher back then. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. These calculations tend to mention the value of prime Permian Basin acreage when discussing Torchlight's Orogrande Basin acreage. 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. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . "Mr. Brda has been our President and Secretary and a member of the Board of Director since January 2012. Torchlight again has a 12.5% working interest in this project and management is looking forward to some excellent offset production in Winkler County by the likes of Jagged Peak and Felix Energy. On June 12, 2018, Nobilis Health Corp. filed a malpractice lawsuit in Houston, Texas against Briggs & Veselka. 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. Northern Oil and Gas, Inc. Alpha Energy Partners. I have no business relationship with any company whose stock is mentioned in this article. 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. Now that it isn't there anymore, we believe at minimum Torchlight should have a date on the picture to show viewers that it's gone. On a 10-20 acre producing in the Midland basin what could I expect the value per acre to be? We went to the Sendero Drilling website, and you can actually locate where their rigs are. (around 160 to 180 barrels per day with an almost 15% load recovery). 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. Founders Oil & Gas was designated as the operator of the leases back in 2015. Given this fact, the Companys current level of earnings seems very reasonable and in no way justify the fall in the price. . Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. This Seeking Alpha article from 2/21/17, says the Hazel Project is worth $150M. 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