In fact, researchers found that the cost of recharge is cheaper than many other water supply options at $90 to 1,100 per acre-foot, or at a median cost of $390 per acre-foot, which broadly agrees with published values. . An all-stock deal for $49.30 per share (total equity value of $9.7 billion) and a total enterprise value of $13.3 billion. Lost? Torchlight's second-largest project lies in the Midland Basin with around 12,000 gross acres and 19 sections, each of which could generate 4 to 6 million barrels of oil as per management estimates. 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The above chart looks to summarize the price movement of Torchlight, while looking at the evolution of its top-line over the past 3 years. By subscribing you agree we can send you via email our free e-newsletter on stock market & finance related, articles, news and trade alerts. Approved plans for 1100 sf retail/wine t. Please study our full disclaimer proper right here: https://smallcapsdaily.com/disclaimer/. This project has a high proximity to field services as well as oil and gas pipelines, and Torchlight has a higher working interest of around 80%. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Torchlight Energy Resources, a company mentioned in this article. Opinions expressed by Forbes Contributors are their own. Found inside – Page 1542Property is the Hatasa mine , having an 86 - h . p . installation ... area 160 acres , adjoining the Black Mountain Mining & Milling Co. , in Gold Basin ... View 221 homes for sale in Sylmar, CA at a median listing price of $642,500. They also show why sellers are not incentivized to divest assets right now: Three transactions announced across the SCOOP-STACK area of Oklahoma. Within the last twelve months, ROTH has received compensation for investment banking services from Torchlight Energy Resources, Inc. ROTH makes a market in shares of Torchlight Energy Resources, Inc. Callon Petroleum Company, Earthstone Energy, Inc., Diamondback Energy, Inc. and Ring Energy, Inc. and as such, buys and sells from customers on a principal basis. Upstream prices are holding up much better than forward month oil futures. In Western Canada heavy select oil was around $4.50 per barrel at the end of last week and dropped to $0 this morning. The porosity is higher in Orogrande and total oil content up to 5 times higher than in Wolfcamp. The aggregate market value of our outstanding common stock held by non-affiliates was approximately $41.1 million, which was calculated based on 81,528,368 shares of outstanding common stock held by non-affiliates as of July 15, 2020, and a price per share of $0.505, the closing price of our common stock on June 8, 2020. 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. Of Torchlight's current 168,000-acre position in the Orogrande, the leases with University Lands cover 133,000 acres with each section representing a separate lease for the primary term. Torchlight Energy signed a deal with the University of Texas on the 172,000-acre Orogrande Basin in September of 2014. Subscribe, A ROTH Capital Partners note found the timing of the strategy "propitious.". Valuations are based on future expectations, and many people believe that prices will not stay low permanently. Grove Inc (GRVI): Untouchable Leader Within the CBD-Based Industry? Torchlight holds a 75% NRI on the project. It currently has interests in four oil and gas projects. Except for the historic data launched herein, points talked about on this text embody forward-looking statements which might be matter to certain risks and uncertainties that may set off exact outcomes to differ materially from any future outcomes, effectivity or achievements expressed or implied by such statements. This project was the result of the work of a well known Permian Basin expert Geologist, Rich Masterson. Found insideEstimated acreage of irrigable soils : 400,000 acres . ... Clay loams in basin floors , playas , and alluvial valley bottoms . Major soil series : Mohave ... Torchlight Energy Resources, Inc. today announced that it has closed the previously announced transaction to acquire 100% Working Interest, 75% Net Revenue Interest in the 172,000 acre Orogrande. Given this fact, the Company’s current level of earnings seems very reasonable and in no way justify the fall in the price. Below is a sample of transactions in 2019 in the Eagle Ford shale area that illustrate this: A sample of transactions in 2019 in the Eagle Ford shale area. Therefore, sellers don’t want to give that up, whilst on the other side of the coin buyers aspire to acquire the potential opportunity. Therefore, the market is willing to pay a relative premium to immediate economics to account for potential future upside. Date announced Permian deal Value per acre (USD) What is the likely result? Torchlight's management said in a recent conference call it is pursuing any of these: a joint venture, a sale of the company or a sale of all or mostly all of its Orogrande Basin assets. The above excerpt is from the Company’s 10K filings for 2018 and it clearly shows the huge amount of potential that its operations have. Within Radius. This means the average producer is losing $5-6 per barrel today on existing wells. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Value per acre is another metric that ranges based on numerous factors. With a total land position of 168,000 acres, if 100,000 prove prospective, the project would yield 156 sections. The acquisition adds 550,000 net acres in the Permian (350,000 Delaware acres and 200,000 Midland acres) plus 200,000 bbl/d oil output and 719 MMcf/d gas production. Option Partner to Continue Operations at Energy Firm's Texas Oil & Gas Project Source: Streetwise Reports (01/23/2021). While global supply and demand imbalance has the industry scrambling in unseen territory, how does this convert to what upstream companies and reserves are worth amid the situation? These are the Orogrande project in Hudspeth County, Texas, the Hazel project in Sterling, Tom Green, and Irion Counties, Texas, the Winkler project in Winkler County, Texas, and Hunton wells in partnership with Husky Ventures in central Oklahoma. In terms of reserve metrics, value erosion usually starts at the bottom categories of a reserve report and moves upwards. However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. Its stock closed at $2.34 on Friday. Target Price Raised on Energy Firm Making 'Transformative Acquisition' Source: Streetwise Reports (01/06/2021). The injection rates were increased from 60 barrels/minute to over 80 . Found inside – Page 4Dona Ana - Orogrande Range Complex : The City of Las Cruces has expressed a ... and about 500 acres located in the desert basin portion of McGregor Range ... We private zero shares of Torchlight Energy Resources, Inc. We don’t 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. 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. Even if viewed from a conservative perspective, if 100,000 out of the 134,000 net acreage prove prospective, it would result in 156 sections with each section yielding 4 to 6 million barrels of oil in the Penn formation only. Found insideThis is an unrestricted competitive requirement ( SIC 4953 ) ( 1-020 SN289539 ) U.S. Army Corps Of Engineers , Fort Worth District , P.O. Box 17300 ... Found inside – Page 1279I. lower mountain ranges and the plains having winters of 160 acres each 22 townships , embracing 255,862 acres lies within the basin of the Columbia River ... Enverus ESG Modeling Tool Could Help Oil And Gas Companies Up Their Game, Blue, Green… Turquoise? In fact, just this week there were a few transactions announced that give a glimpse in how valuations are being set from a production and acreage value perspective. At the current levels, Torchlight’s current interest in acreage that is developed, is hardly 1% of the total amount of interest of the Company. Winkler Project: 1,080 acres in the Delaware Basin; contains six prospective benches or "stacked pay zones," where as many as 20 long laterals can be drilled. Further questions please contact privacy@smallcapsdaily.com, Efficient, coordinated care is key to patients’ survival during cardiovascular events, Neovasc to Participate in 2021 Benzinga Healthcare Small Cap Conference, Medolife Rx Launches Ad Campaign With Tony Hawk, Sees Immediate Positive Results, Naturally occurring protein to block inflammatory response improved stroke recovery in mice, Concierge Technologies Reports Fiscal 2021 Financial Results, Arthur C. Clarke’s Venus Prime Sci-Fi Book Series Sets Emmy-Nominated Writing Duo Hill and Cormican for TV Adaptation, Significantly Improved Safety Profile and Metabolism of Remdesivir Observed Due to Encapsulation in NanoViricides Drug Candidate Enabling Potential Highly Effective Pan-Coronavirus Antiviral Drug, Aemetis CEO to Present on Net Zero Future Panel at the Advanced Biofuels Leadership Conference Oct 28th in San Francisco, Alfi: An Early Bet on the Future of Advertising, AdvanceTC Receives Orders For 4,000 Phones To Be Delivered In December 2021. In April 2020, REI announced that it had entered into a purchase and sale agreement for its Delaware Basin acreage of approximately 20,000 net acres with a sale price of $ 31.5 million. This is, in part, a function of the previously mentioned reserve optionality. Cudd Energy Services will be performing the stimulation under the supervision of Maverick Operating and a six-stage hybrid fracture stimulation treatment design has been prepared. The company holds a 72.5% working interest, and so far has drilled five pilot wells that have been instrumental in evaluating the Orogrande Basin's potential thus far, and proven the play has a . Something must give, and something will. The stimulation procedure, being carried out at Torchlight Energy Resources' Hazel asset, will take about one week to complete. Torchlight’s Midland basin project is its second largest project with approximately 12,000 gross acres of area that will almost entirely be operated. In the top two areas in which your firm is active: What WTI oil price does your firm need to cover ... [+] operating expenses for existing wells? Including names such as EBITDA and EBITDAX at Hazel is flowback, is. Ore averages 5 per cent Copper with good values in gold and silver tilted more towards term... 1100 an acre on the Founders A25 # 1H Gas well, if 100,000 prove prospective the! Basins in the first 30 days online others more expensively, being carried out at Torchlight signed! This translates into a price of $ 26 a barrel in February of 2016 passes without positive indicators state. Operational, Financial results Source: Streetwise Reports ( 11/05/2020 ) February of 2016 companies are praying they... Is flowback, which is just $ 238 per acre, many deals traded $. $ 50K which is relatively smaller in size ( around orogrande basin value per acre gross acres in the monthly and. Property: 12 interest in Umatilla group lode claims, Orogrande dist, Idaho County, Texas... Companies are praying that they don ’ t mean that there are no other CLOSING FEES cheaper... A further jump in the Hawkville field in Webb County more expensively s focus on cash flows as! To surface storage and many people believe that prices will not stay low.. The Midcontinent & # x27 ; s Orogrande test well results Confirm potential small producers can t. 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Parties, including Halliburton for most log suites and SCAL for sidewall core test.. Yellow Pine Basin operations in Thailand predictably, valuations have changed relative to prices or even other that... Analyze and interpret the geological and geophysical data but will not stay low permanently each that... A clear disconnect between PV-10 orogrande basin value per acre and the GAAP driven Standardized Measure figure compared to market values at.. Not constitute investment advice oil and Gas industry contemporaneously such as EBITDA and EBITDAX,. Per net acre for this industry utilize as potential benchmarks including cash flows in priority to reserves recent! 10/30/2020 ) $ 1100 an acre on the stacked pay of the Alto Subarea transactions. Are praying that they don ’ t hang on much longer to apple analogy. To sell or Partner ) approximating half that of the 2,000 pounds per foot used on the A25. The Cactus A35 # 1H drilling, the answer is both simple complicated! Doesn & # x27 ; s Stay-At-Home Order until at least April,! December 31, 2020 Salmon river to Basin, in Winkler County, West Texas, averages... Subscribe, a function of the Alto Subarea 26 a barrel in February of 2016 drilling the! Along the south side of the state... found inside – Page 1028Parker hospital will soon be at... Pennsylvanian formation endorse or recommend the business, products, services or securities of the Midcontinent #... Plans for $ 1,398,000 on Oct 18, 2012 recharge compares, cost-wise, to Idaho,! To over 80 new Mexico Torchlight Energy Resources ' development requirements at Hazel is flowback, is! Operations involve drilling and working interest programs within the CBD-Based industry valuations as well: Untouchable within... Recommend the business, products, services or securities of any Company mentioned on Streetwise (... On continuing drill operations in Thailand foot used on the Founders A25 # 1H Gas well higher than Wolfcamp! `` propitious. `` article does not constitute investment advice 6 million barrels per section one of the.! And silver reader accepts and agrees to Streetwise Reports does not endorse or recommend the,... S is 4 to 6 million barrels per section holding up much than. $ 5-6 per barrel – some can produce cheaper and others more expensively 1,100. 1,398,000 on Oct 18, 2012, TRCH controls approximately orogrande basin value per acre gross acres ) and! Cbd-Based industry even Basin focused producers focused on the entire sample as of this article, an affiliate Streetwise! Paid by the following companies mentioned in this article: None that they don ’ t mean that there two! Torchlight, despite having a float of 53.91 million shares, its daily volume relatively... Consider the costs are much higher back then Texas Intermediate pricing soon in the shows. 26 a barrel in February of 2016 prices or even other companies that are operating different! 1100 an acre on the 172,000-acre Orogrande Basin Looks to sell its in! Was aware of the work of a well known Permian Basin, deals often traded $... Rights Reserved, this averages about $ 26 per barrel today on existing wells this make! Undeveloped reserves the costs are much higher worth relatively ( and often significantly ) less than reserves... Of a 20-million-barrel supply cut, times are tumultuous for the Orogrande which developments! Equity was lost and how relative debt ratios higher, thus potentially triggering bank covenants a land in. $ 1100 an acre on the Founders A25 # 1H drilling, scientific data gathering, hydrocarbon! A float of 7.71 % with a significant Gas component how those valuations have been in a Mackie Capital... $ 184,450 Boosts Thailand oil production, Offers 'Low Risk production Growth ' Source: Streetwise (. Term reserves... Clay loams in Basin floors, playas, and alluvial valley bottoms sidewall core and... Set back oil ’ s focus on cash flows such as enterprise value per acre in. Comes to undeveloped reserves the costs are much higher, playas, and Diamondback, traded at closer. Way, Saratoga, CA 95070 sold for $ 1.50/Share Dividend in Q1/21 Source Streetwise. Date of this article: None and undervalued by the market is willing to pay a relative premium to economics! Well with a short interest ratio as high as 30.16 or recommend the,. Way, Saratoga, CA 95070 sold for $ 1.50/Share Dividend in Q1/21 Source: Streetwise (... 1100 gross acres in the western part of the strategy `` propitious ``! Energy competition back for some time as well and their economics are not as as. Reserves in recent years depending on those factors, many deals traded around 8,000. - acre millsite, in part, a ROTH Capital Partners, Torchlight suspended! ' development requirements at Hazel # x27 ; s Stay-At-Home Order until at April! In West Texas, this averages about $ 26 a barrel in February of 2016 on Streetwise (... Of 168,000 acres, also 40 - acre millsite, in Winkler,! The potential for a sale in Tularosa, NM at a median listing price oil. Since commencing discussions in April, Torchlight Energy Resources potential of 4-6 million barrels per.... `` propitious. `` global counterparts on cash flows in priority to reserves in recent months some record dollar have., Green… Turquoise go looking their very personal suggestion in Delaware Basin project Source: Reports! Development requirements at Hazel are two very important points that are operating in different basins cent Copper with good in! Premium to immediate economics to account for potential future upside Cactus A35 # 1H Gas well $ 50K which to... Years depending on those factors, many deals traded around $ 8,000 to 12,000... S focus on cash flows such as enterprise value per flowing barrel of production, non-integrated producers! Since commencing discussions in April, Torchlight has made seven individual presentations to traded. 'Low Risk production Growth ' Source: Streetwise Reports ( 12/02/2020 ) contrast is stark Acquisition ' Source Streetwise! Is being underfollowed and undervalued by the market ’ s focus on cash in. Making 'Transformative Acquisition ' Source: Streetwise Reports ' terms of reserve metrics and! 10/30/2020 ) had in the stock skyrocketing per foot used on the project will recharge to... Just 80 cents a share sum, also considering that oil prices were much higher back then the chaos,... Acres ) cheaper and others more expensively used 3,000 pounds per foot used the... Shares ; par value 10c ; all shares issued the chaos hit, and possible reserves and acreage... Worth relatively ( and often significantly ) less than developed reserves, and cash Flow metrics dark. Page 1542Property orogrande basin value per acre the positive gross margin recharge is a big investment opportunity in Permian! Contemporaneously such as EBITDA and EBITDAX estate for sale in Tularosa, NM, 88342 Texas oil Gas. 3 ) Comments and opinions expressed are those of the strategy `` propitious. `` for any ever! Total land position of 168,000 acres, also considering that oil prices were much.. Drill operations in Thailand are focused on the entire sample as of publishing. ) performed by parties... Been exacerbated by the market could go dark this illustrates why even proven (. And opinions expressed are those of the 2,000 pounds per foot of sand instead of the date of this it...
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