In Nevada, prices are between $4,000 and $5,500. Core samples, logs and oil and gas shows while drilling demonstrate the presence of hydrocarbons and are now itemized in a 22-item checklist in the companys July 2015 investor presentation. 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 . Rextag database of energy infrastructure assets. 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. We went to the Sendero Drilling website, and you can actually locate where their rigs are. So, v a = PPA. Value per acre is another metric that ranges based on numerous factors. 6. 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. Torchlight regained compliance with Nasdaq's listing requirements within the required period of time. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. He has a B.S. Keyword Property ID. The Orogrande Project is a speculative play that hasn't been proved out (zero proved reserves as of Torchlight's 2019 10-K). On a 10-20 acre producing in the Midland basin what could I expect the value per acre to be? Any Yes No Irrigated? We are currently offering a free two-week trial to Distressed Value Investing. . The deal closed on Dec. 30, 2021 and grew FireBird's gross acres to 72,000 acres in the area with a daily production of 11,500 barrels of oil per day. We, Yahoo, are part of the Yahoo family of brands. For example, one Torchlight share is currently $2.29 USD (perhaps $2.08 USD net of the value of its oil and gas properties as discussed below). Has House? Subscribe for free to our newsletters for the latest energy news. Metamaterial's stock is up around 36% since that report, while Torchlight's stock is down around 38% over the same period. Is this happening to you frequently? Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. Investors looking at the previous data on the revenues would probably ask Yes, the revenues have more than doubled but have Torchlights margins been up to the mark? The answer is Yes. This would be the result of the . Based on this article from Nov 2020, the price per acre for the Orogrande basin (part of the Permian Delaware basin) was around $30K. 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. However, analysts are expecting to range from anywhere between $1 per share and $20 per share. I was doing some math last night. 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. "In the process, Pioneer has leapt from holding an already industry-leading . is in the process of . The various Orogrande Basin transactions point to a value of well under $1 per share for the special dividend, perhaps as low as a dime or two. the court entered a default judgment against him in September 2012. View 11 photos, read details, and contact the seller. NOG Acquires Northern Delaware/Permian Assets for $157 Million. However, this assumes that you have a certain . In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead. From the administrative proceeding: a common abuse found among certain small publicly held companies. There were some contingences that need to be completed with Universi. Right now, the drill isn't being used, he said. Add up the value of all the parcels you want to include in your average, if there's more than one. One Metamaterial share is around $3.00 USD and that gets you 3.3 Torchlight shares (around $0.91 USD per Torchlight share). 09-30-2022. However, according to Mr. Brda's own LinkedIn page, his background is quite different from the one described above. This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. Permian Basin is the only . In April, closely held DoublePoint Energy sold to Pioneer . 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. More:$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. 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. 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. 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. I mostly wanted to go into more depth about the value of Torchlight's oil and gas properties (and thus the potential value of its special dividend) though. 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. I am not receiving compensation for it (other than from Seeking Alpha). New information updated about the Orogrande Basin. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. Is this someone you would want to invest your capital with? History and geology appear to be in alignment for a new tight oil play. 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? Thirdly, if a cratering share price and drastic drop in the price of crude oil weren't enough. That's a massive range for the special merger dividend that investors will have to hold out for. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . . With Mexicos efforts at energy reform, the revitalizing West Texas Permian-era horizontal play may very well have global implications. Consists of 1,000 to 2,000 feet of sandstone, shale, earthy limestone, and gypsum. The post-October median transaction value declined 95% to just $294 million from the pre-November median value of $5.6 billion. . In November 2007, Mr. Brda was named alongside 75 entities and other individuals in a complaint containing nineteen counts, including alleged violations of the federal Racketeer Influenced and Corrupt Organization Act and the anti-fraud provisions of the federal securities laws (the lawsuit does not involve Torchlight Energy Resources, Inc. in any way). Ready to build zoned SR-43 (single family residential) lot. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. April 05, 2017 08:45 ET | Source: Streetwise Reports. 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. I am not receiving compensation for it (other than from Seeking Alpha). How much do you think $57 billion dollars of oil underground will sell for to an oil company. in Petroleum Engineering from the University of Texas at Austin and currently works as a Drilling Engineer for an E&P company in San Antonio, Texas. The petrophysics . 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. 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. It could go either way at this point. The area has 19 contiguous sections with a potential of as many as 300 horizontal drilling locations and a potential to generate 4 to 6 million barrels per section. I wrote this article myself, and it expresses my own opinions. He said they did lease out the drill back around February or March of 2018. As well, the Permian Basin acreage that is considered valuable is concentrated in counties that have large amounts of oil and condensate production, and huge amounts of associated proved reserves. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. 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. The Orogrande Project has zero proved reserves and zero commercial production. . 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. Torchlight has done a bit of exploratory work on the asset since then, but at last report there are still no proved reserves associated with it. In the Permian Basin, a prospect is to be drilled soon in the lightly explored Orogrande Basin. And this latest news is likely to put one junior oil and gas explorer on the petroleum map, making it a target for several major producers. Now, the Company has a short float of 7.71% with a short interest ratio as high as 30.16. 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. UNITED STATES. . All documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information furnished pursuant to Item 2.02 or Item 7.01, or any corresponding information furnished under Item 9.01, on any Current Report on Form 8-K) after the date of the initial registration statement and prior to the effectiveness of the registration statement and after the date of . Diamondback Energy's approximately $3 billion in recent acquisitions involved mostly Martin County acreage, with a small amount of Andrews County acreage as well. 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 . Likewise, the Marcellus Shale lease can generate as much as $4,800 per net acre. 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.". That is the equivalent of almost one billion barrels of oil and gas over 30 years, worth more than $30 billion at current prices. Please. You can change your choices at any time by visiting your privacy controls. Out for the latest energy news Yahoo, are part of the Yahoo of! 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orogrande basin value per acre