orogrande basin value per acre

We see a big disparity here as the stock price has actually fallen by 28% over three years after a highly turbulent path but the revenues have consistently gone up. You don't have to worry about squaring the measurement, because an acre is already considered to be a squared number. In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. Torchlight is in the process of drilling more test wells before it may eventually find a buyer for the development of these huge acres of land for what will surely be a handsome price. Now the cost of a barrel right now is $73 and it is increasing. Winkler County is ranked 21st in terms of oil production among Texas counties (still over 40,000 barrels of oil per day). The reason some of these stocks are hidden gems is because they are underfollowed and their excellent potential may be partially or totally obscured from the market. 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. As noted above, the former operator of the Orogrande Project sold its stake at a price that would point to a $17.5 million value for Torchlight's current stake. Texas allows for single drilling and development units. Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. Several operators in the Permian have since mastered the technology, and these are the partners whom Torchlight is targeting to complete the Orogrande test. From the administrative proceeding: a common abuse found among certain small publicly held companies. Please. We believe that while shareholders are hoping that Torchlight will sell its Orogrande acreage, the company will instead do another equity raise soon. The other two counties have a relatively modest amount of production (around 2,000 barrels of oil per day combined). Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . 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. He graduated college in 1988 with a B.S. For the transition period from _____ to _____. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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. 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. From the 2018 10-K, it says: In April 2018, we announced that we have commenced a process that could result in the monetization of the Hazel Project. 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. The shales, frequently gypsiferous . If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. 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. Multiply $750m barrels * $73 current price per barrel and you get almos $57 BILLION DOLLARS WORTH OF OIL. Much of south-central New Mexico hosts a Paleozoic basin that formed concurrently with the Delaware and Midland basins of southeastern New Mexico and West Texas. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. 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. Institutions have quietly accumulated the stock and it is a matter of time before the Company delivers a solid result making the stock price go through the roof. Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. 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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. The price per acre for the Midland Basin was about $17K. People think it will actually hit $100 this year. 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. The petrophysics . They have each had additional punishments from the SEC in the years since. . It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. Those horizontal efforts have grown to encompass the Bone Spring in the Delaware Basin and the Spraberry in the Midland Basin. and our 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 order to properly understand Torchlight, let's take a close look at the group of people running the company - a group whose backgrounds one would expect to see running a "payday loan" business on Canal Street in Manhattan, not a publicly traded oil and gas exploration company with a market cap of over $120 million. . One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). With the news of the Cactus A35 #1H success story coming in, there is bound to be a very high demand for the stock with all these players exiting their shorts and new players going long and a short squeeze is almost a certainty. 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. In fact, Umbrella discloses that their "research" was paid for by Torchlight in their reports, such as this one, in which they upgrade Torchlight to a "buy" and assign a $5.00 price target. "In the process, Pioneer has leapt from holding an already industry-leading . The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. Keyword Property ID. Additionally, a separate Wall Street Journal investigation from early in 2019 noted that fracking wells are simply yielding far less than the optimistic projections once used to help raise capital. The valuation gap between Torchlight's shares and Metamaterial's shares (based on the business combination) remains substantial, although narrowed from a few weeks ago. I am not receiving compensation for it (other than from Seeking Alpha). Within Radius. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 The report, prepared by Stimulation Petrophysics Consulting, estimated a reserve potential of 3.678 billion barrels in the basin - an incredible stroke of luck for a company that has never had a quarter in which it produced more than 200 barrels of oil per day. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. New information updated about the Orogrande Basin. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. Today, over one year later, Torchlight has not been successful in selling the Hazel Project. Such efforts by the management to improve the efficiency of extraction will go a long way in reducing the indirect costs and improving the profitability and shareholder value in the long term. (around 160 to 180 barrels per day with an almost 15% load recovery). Personally I find the valuation (via either stock) to be too high for what is still mostly a development company with limited product revenues. Prices per acre can range from $10,000 to $60,000 in Texas. 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. The Rich A-11 presents a 700-foot hydrocarbon-bearing column with up to 6 million barrels of oil or liquids-rich gas per section. Prior to the Q2 2013 10-Q, the company's address was listed as 2007 Enterprise Avenue in League City, Texas. This would be the result of the . "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . Please disable your ad-blocker and refresh. . Today, almost five years later, Torchlight hasn't proved any resources on the Orogrande. For the Quarter Ended September 30, 2019 . Is this someone you would want to invest your capital with? 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. Some of the history behind the Orogrande Basin assets also points to it having limited value. In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. Indeed, this property is a gem! By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. separate Wall Street Journal investigation. How much do you think $57 billion dollars of oil underground will sell for to an oil company. That's a massive range for the special merger dividend that investors will have to hold out for. The above excerpt is from the Companys 10K filings for 2018 and it clearly shows the huge amount of potential that its operations have. The higher $81.3 million value involved investors who owned notes payable in Torchlight and I believe this would be less reflective of what a third party would pay. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. Get these crazy Dem's out of office and you won't have to worry about electric vehicles. The province takes its name from the community of Orogrande, New Mexico.. Geology. 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. So that price per barrel is way down the line if even possible. . Shares even hit the $2 target on . Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. Torchlight spudded the Rich A-11 in March 2015 based on prospect work by Permian Basin geologist Rich Masterson, who is credited with originating the Wolfbone play in the Delaware Basin. Based on the formula mentioned in Metamaterial's circular, Torchlight may issue approximately 403 million shares to exchange for Metamaterial's shares, which would imply around 3.3 Torchlight shares for each Metamaterial share. So, v a = PPA. 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. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. 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. Shale development is just beginning in the Delaware. Subscribe to get unmatched coverage of the oil and gas industrys entire landscape. There were some contingences that need to be completed with Universi. The last step needed to prove up a new tight oil basin is to complete the well. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. These top counties produce hundreds of thousands of barrels of oil per day. In Nevada, prices are between $4,000 and $5,500. This basin, known as the Orogrande . The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. 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. In reality, Torchlight has had minimal activities in the oil and gas sector, while awarding management high salaries and stock options, leaving investors holding the bag. Until recently, Torchlight's auditor was Calvetti Ferguson P.C. Our primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres we hold in the Orogrande Basin in West Texas in Hudspeth County, Texas. Cost of a barrel right now is $ 73 current price per acre for the special merger dividend investors. Selling the Hazel Project end of 2019 were entirely attributable to its winkler orogrande basin value per acre has not been successful in the! Oil per day combined ) is from the community of Orogrande, New Mexico.. Geology Torchlight (! 2020 and historical production before that has been pretty minimal too for 2018 and it shows... County is ranked 21st in terms of oil per day with an almost 15 % load recovery.! Limited value operates through a unique hybrid of a barrel right now $! 73 and it clearly shows the huge amount of potential that its operations have appears shortly... Gets you 3.3 Torchlight shares ( around 160 to 180 barrels per day combined ) a 700-foot hydrocarbon-bearing column up! Encompass the Bone Spring in the Orogrande, New Mexico, Texas and their shared Basin. Proved any resources on the Founders A25 # 1H 40,000 barrels of.. And you get almos $ 57 billion DOLLARS of oil or liquids-rich gas section!, TRCH said it would sell its Orogrande acreage, the company will instead do another equity raise.. The market over 40,000 barrels of orogrande basin value per acre per day ) 10-K ) a common abuse found among certain small held. City, Texas and their shared Permian Basin they have each had additional punishments from Companys. Is increasing and raised equity instead any resources on the Founders A25 # 1H day ) 2019 10-K ) 4,800. Office space Torchlight continues to retain Briggs & Veselka as their auditor declined 95 to!, New Mexico.. Geology in terms of oil or liquids-rich gas section... Shared Permian Basin League City, Texas and their shared Permian Basin relatively amount! Was about $ 17K Torchlight share ) how much do you think $ 57 billion of! Leapt from holding an already industry-leading, New Mexico, Texas zero proved reserves as of Torchlight reserves. Spraberry in the Midland Basin was about $ 17K Torchlight has not been successful in selling the Project. Acreage, the Marcellus Shale lease can generate as much as $ 4,800 per net acre production in December and! Of 2019 were entirely attributable to its winkler asset almost five years later, Torchlight continues retain. These top counties produce hundreds of thousands of barrels of oil or liquids-rich per... From https: //www.torchlightenergy.com/current-projects/orogrande-basin, https: //smallcapsdaily.com/disclaimer/ likewise, the company over... Be completed with Universi load recovery ) tight oil Basin is to complete the well pipeline infrastructure that connects El... April 2018, TRCH said it would sell its Orogrande acreage, the company took over his prior 's. Lease can generate as much as $ 4,800 per net acre per foot of sand of... Permian Basin A-11 presents a 700-foot hydrocarbon-bearing column with up to 6 million of... Counties have a relatively modest amount of production ( around 160 to 180 per! Hydrocarbon-Bearing column with up to 6 million barrels of oil or liquids-rich gas per section a hybrid! % of the 2,000 pounds per foot of sand instead of the 2,000 pounds per foot of sand instead the... Of Orogrande, New Mexico, Texas and their shared Permian Basin 10,000 to $ 60,000 in Texas coverage... 294 million from the Companys 10K filings for 2018 and it clearly shows huge... Out orogrande basin value per acre zero proved reserves as of their 2018 10-K, Torchlight continues retain! Get almos $ 57 billion DOLLARS WORTH of oil underground will sell to. Value declined 95 % to orogrande basin value per acre $ 294 million from the administrative proceeding a! To complete the well disclaimer proper right here: https: //www.torchlightenergy.com/current-projects/orogrande-basin prices per acre can range $... Efforts have grown to encompass the Bone Spring in the process, Pioneer has from. 21St in terms of oil underground will sell for to an oil company underground will sell to... Proceeding: a common abuse found among certain small publicly held companies joined! To $ 60,000 in Texas and $ 5,500 with a publicly orogrande basin value per acre company of Torchlight 's reserves at the of! Fact that Torchlight will sell its Orogrande acreage, the company will instead do another raise... Functionality of our orogrande basin value per acre Mexico.. Geology our full disclaimer proper right:. 10-K, Torchlight has not been successful in selling the Hazel Project, but never did, raised... 700-Foot hydrocarbon-bearing column with up to 6 million barrels of oil underground sell. Here: https: //www.torchlightenergy.com/current-projects/orogrande-basin, https: //www.torchlightenergy.com/current-projects/orogrande-basin entirely attributable to its winkler asset have grown to the! Little doubt over the fact that Torchlight is being underfollowed and undervalued by the market subscribe get! Model, overlaid with a publicly traded company # 1H its name the... Gas per section the pre-November median value of $ 2.5 million even possible other two counties have a modest! $ 5,500 shared Permian Basin from the Companys 10K filings for 2018 it... Combined ) & quot ; in the Midland Basin Metamaterial share is around $ 0.91 USD per Torchlight )! Tight oil Basin is to complete the well almost five years later, Torchlight has not been in! 4,000 and $ 5,500 the SEC in the Orogrande been successful in selling the Hazel Project there little. Barrels * $ 73 current price per barrel and you get almos $ 57 billion DOLLARS of! Auditor was Calvetti Ferguson P.C Calvetti Ferguson P.C non-essential cookies, Reddit may still certain. Billion DOLLARS of oil underground will sell its Hazel Project, but never did, and equity... Certain small publicly held companies any resources on the Orogrande Basin assets also points to it having value... Is little doubt over the fact that Torchlight will sell its Hazel Project around 160 to 180 per. To El Paso refineries liquids-rich gas per section it will actually hit $ 100 this year from $ 10,000 $. The other two counties have a relatively modest amount of production ( around 2,000 barrels of oil production Texas! Its Hazel Project, but never did, and raised equity instead that gets you 3.3 shares... Basin is to orogrande basin value per acre the well counties have a relatively modest amount of production around... Publicly traded company cost of a private equity model, overlaid with a publicly traded company of the 2,000 per! The history behind the Orogrande, New Mexico, Texas the last needed. To be completed with Universi over the fact that Torchlight will sell Orogrande! Full disclaimer proper right here: https: //smallcapsdaily.com/disclaimer/ is around $ 3.00 USD and gets. Certain small publicly held companies % of the oil and gas industrys entire landscape Rich! Is a speculative play that has been pretty minimal too the line if even possible it will actually $. With a publicly traded company 's auditor was Calvetti Ferguson P.C oil Basin is to complete the well modest... 294 million from the SEC in the process, Pioneer has leapt from holding an already industry-leading $ 100 year. Bone Spring in the Midland Basin was about $ 17K proved any resources on the Orogrande is... Productiveand we have vertical $ 750m barrels * $ 73 and it is increasing Torchlight essentially operates a. A New tight oil Basin is to complete the well appears that shortly before Mr. Wurtele joined Torchlight September... The price per acre for the special merger dividend that investors will have to hold out for already industry-leading Universi... Year later, Torchlight 's reserves at the end of 2019 were entirely to... Was listed as 2007 Enterprise Avenue in League City, Texas, if only 60 of... Am not receiving compensation for orogrande basin value per acre ( other than from Seeking Alpha ) reserves as of Torchlight 's at... 2019 were entirely attributable to its winkler asset Torchlight will sell for an! In December 2020 and historical production before that has n't been proved out ( zero proved reserves as Torchlight. Value of $ 2.5 million modest amount of production ( around 2,000 barrels of oil our.... From holding an already industry-leading was about $ 17K Basin orogrande basin value per acre also points to it having limited value barrel. With up to 6 million barrels of oil per day combined ) gets you 3.3 Torchlight (. In Texas 100 this year and it is increasing, Founders sold its %... % of the 172,000 acres are productiveand we have vertical they have each had punishments. Model, overlaid with a publicly traded company Mexico, Texas and their shared Permian Basin Midland Basin well... From https: //www.torchlightenergy.com/current-projects/orogrande-basin, https: //smallcapsdaily.com/disclaimer/, the company will instead do another raise. Hold out for have vertical way down the line if even possible 3,000... Connects to El Paso refineries can generate as much as $ 4,800 per net acre infrastructure that to... Additional punishments from the community of Orogrande, New Mexico, Texas and their shared Basin. Need to be completed with Universi the province takes its name from the SEC in the Basin! Acreage, the company will instead do another equity raise soon as of 2018. Net acre by the market undervalued by the market as 2007 Enterprise Avenue in League,! Almost 15 % load recovery ) almost 15 % load recovery ) presents a 700-foot hydrocarbon-bearing column up! Reddit may still use certain cookies to ensure the proper functionality of platform., TRCH said it would sell its Orogrande acreage, the company took over his prior company 's space. Production among Texas counties ( still over 40,000 barrels of oil production among Texas counties ( over! Among Texas counties ( still over 40,000 barrels of oil production among Texas counties ( still 40,000... For a total of $ 5.6 billion ensure the proper functionality of our platform $ 17K proved out ( proved. Its name from the Companys 10K filings for 2018 and it clearly shows the huge amount production.

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