orogrande basin value per acreorogrande basin value per acre

View 11 photos, read details, and contact the seller. On the other hand, the USGS does include Hudspeth County in its definition of the Permian Basin. 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. The Permian Basin is an oil-and-gas-producing area located in West Texas and the adjoining area of southeastern New Mexico. Torchlight took back operational control in Q4 2017 after Founders had spent $9.5 million to gain a 9.5% working interest in the project. 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. For more information, please see our On June 12, 2018, Nobilis Health Corp. filed a malpractice lawsuit in Houston, Texas against Briggs & Veselka. Using TRCH's stock price of $3.74 on 8/7/14, that equates to a total of $3.35M, or $19.47 per acre. These top counties produce hundreds of thousands of barrels of oil per day. has pushed up prices. 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. with many not being able to survive the fallout. Before, Torchlight was looking to participate in drilling activities. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. 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. Disclosure: I am/we are short TRCH. 72,727. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. Browse LandWatch's Texas land for sale page to find more rural . //www.accesswire.com . Get them exclusively at Distressed Value Investing. Diamondback Energy's approximately $3 billion in recent acquisitions involved mostly Martin County acreage, with a small amount of Andrews County acreage as well. We private zero shares of Torchlight Energy Resources, Inc. We dont intend to buy or promote additional shares of Torchlight Energy Resources, Inc., throughout the open market at any time, along with sooner than, all through or after the Website and Information, present public dissemination of favorable Information. discussed below). We did our due diligence on this rig. We have an over 80% success rate, see our reports at whitediamondresearch.com. Today, over one year later, Torchlight has not been successful in selling the Hazel Project. 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. Engineers warn the new wells could produce as much as 50% less in some circumstances. WTI crude prices have been well below $40 per barrel for most of the year. Mr. Brda also has a checkered past. We, Yahoo, are part of the Yahoo family of brands. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. It doesnt end here. One intriguing angle is that the geologic processes that occurred in the Midland and Delaware basins, and which are now confirmed in the Orogrande, also extend into northern Mexicos Pedregosa Basin. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. Privacy Policy. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. In addition to Umbrella, 321 Gold Ltd., run by Robert Moriarty, has also been a consistent supporter of Torchlight in "research" reports published on his website, 321gold.com. In Arizona, the price is about . The Hazel Project is located in Irion, Sterling and Tom Green counties. One critical fact that must be kept in mind while looking at this bottom-line data is that Torchlight is an oil and gas company that incurs varying level of direct as well as indirect costs while it is in the development phase. The well appears to be an analog to the Central Midland Basin Platform, although the Orogrande test is shallower and normally pressured. Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. 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. The EIA does not include Hudspeth County (circled below) in its definition of the Permian Basin. Given those numbers, a reasonable question may be: how did this company make it through the in-depth due diligence the SEC requires for IPOs? . I wrote this article myself, and it expresses my own opinions. 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 . 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. Although Mr. Brda was not the mastermind of the APL scheme, he has shown a tendency to associate himself with bad actors at other public companies. 09-30-2022. 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. . 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. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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. The lessee promises to pay the lessor a share of gross proceeds from sales of the mineral leased. Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. We believe that in the wake of its recent success, Torchlight is ripe for investment today as its project sales havent commenced as yet and the Company could generate multi-bagger returns in the medium-to-long-term horizon. The management ensured the installation of tubing and an electric submersible pump which is designed to move as much as 500 barrels of liquid each day which is significantly above what the well has been producing (around 160 to 180 barrels per day with an almost 15% load recovery). Shares even hit the $2 target on . This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. The Permian-Delaware basin is still valued at $30,000 per . Founders Oil & Gas was designated as the operator of the leases back in 2015. As time passes by, land value around Los Lunas will likely skyrocket. 2023 Hart Energy. They are a public company looking for investors. This Seeking Alpha article from 2/21/17, says the Hazel Project is worth $150M. The company's entire perceived value is based on possible oil in its Orogrande Project. latest information I found, but if accurate it still points to Metamaterial's shares being significantly cheaper than Torchlight's shares if one wanted to invest in the new company. Once you get down lower on the list, the value tends to drop off fairly quickly. Please disable your ad-blocker and refresh. What is the point of paying auditors who have a concerning history? SAN FRANCISCO, CA-- (Marketwired . 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. Salesparq, LLC which ownsSmallcapsDaily.comisnt registered with any financial or securities regulatory authority and doesnt present nor claims to produce funding suggestion or recommendations to readers of this launch. 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. Wed, 09/24/2014 - 08:59 AM. SmallCapsDaily.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. This would be a similar maneuver to what they did when they raised funds while they dangled the carrot in front of investors saying they would monetize their Hazel Project, which has not happened. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. It could go either way at this point. 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. Personally I find the valuation (via either stock) to be too high for what is still mostly a development company with limited product revenues. It states: Two-thirds of projections made by the fracking companies between 2014 and 2017 in America's four hottest drilling regions appear to have been overly optimistic, according to the analysis of some 16,000 wells operated by 29 of the biggest producers in oil basins in Texas and North Dakota. 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.". In March 2020, holders of notes payable by Torchlight converted $7.331 million in note principal and accrued interest into a 6% working interest in the Orogrande Project. 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. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 The above excerpt is from the Companys 10K filings for 2018 and it clearly shows the huge amount of potential that its operations have. 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. You can change your choices at any time by visiting your privacy controls. 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. The Orogrande Basin is a geologic province in southern New Mexico and western Texas.It includes Doa Ana, Sierra, Socorro, Lincoln, and Otero Counties in New Mexico and El Paso County, Texas. New technologies, such as diverting agents, microfracturing, coil-tipping fracks, and digitalization can increase production in the Permian. The Delaware Sub-basin encompasses the Hobbs area of southeastern New Mexico and four counties of West Texas. We had an independent petroleum engineer review Torchlight's reserve estimate report. 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. 10,588. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. . and our The province takes its name from the community of Orogrande, New Mexico.. Geology. 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 . Reproduction in whole or in part, in any form or medium without express written permission is prohibited. I've expressed my opinion about Torchlight's relatively high price compared to Metamaterial's given their relative stakes in the post-combination company. Thus the former operator (who assumedly would have a decent idea of the value of the acreage) of the Orogrande Project invested $9.5 million in the project, but ended up selling its stake for $2.5 million. Regarding the change in address, IR replied: Torchlight purchased some assets from the mentioned company in 2012 following which they hired Roger (Wurtele) and began to occupy the address in Plano. Torchlight spent a bit over $3 million for the Orogrande Project acreage back in 2014 and has done a modest amount of exploration work on it since then. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. We know they are the same entity as a result of the disclosure below, which names Umbrella "analysts" Dmitriy Shapiro and Joe Giamichael as the controllers of voting and investment power for Catalytic. More:$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. There were some contingences that need to be completed with Universi. 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. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. However, this assumes that you have a certain . "Mr. Brda has been our President and Secretary and a member of the Board of Director since January 2012. The second big point is the positive gross margin. Adjacent leases still sale for $10/acre or less. Ready to build zoned SR-43 (single family residential) lot. . The newer shale wells often interfere with the output of older wells, because blasting too many holes in dense rock formations can damage nearby wells and lower the overall pressure, making it harder for oil to seep out. Until recently, Torchlight's auditor was Calvetti Ferguson P.C. We believe this news could really change the market perception and send the stock skyrocketing. 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