orogrande basin value per acre

Is this happening to you frequently? 1.17 acres in Cochise County, Arizona Beautiful 1.17 acre lot with power just down the street! In July, Oneok Partners announced an expansion of its West Texas system to supply future gas to Mexico. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Calvetti Ferguson has also had legal troubles in the past. Subscribe to get unmatched coverage of the oil and gas industrys entire landscape. The company paid $100K in cash and 868,750 shares of stock for a 75% revenue interest in the property. Add up the value of all the parcels you want to include in your average, if there's more than one. Indeed, this property is a gem! has pushed up prices. Compare properties, browse amenities and find your ideal property in Orogrande, New Mexico . 21.3 Acres W/ Mineral Rights! Torchlight is targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test. Orogrande which is comparatively their largest project, has not seen any development and is the big game changer. Disclosure: I am/we are short TRCH. Torchlight Energy Resources (TRCH) is heading towards its merger with Metamaterial (MMATF). 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. If you do the math on that it lands somewhere around $750m barrels total. But they didn't work with Torchlight directly. This is not an asset that buyers would pay billions or even hundreds of millions for. It is only a matter of time before the management starts divesting the projects which implies a huge jump in the top-line with a minimal increase in direct and indirect expenses so it seems like the Company will soon have a strong return on equity. 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 Nevada, prices are between $4,000 and $5,500. The other good point is that these institutions have held on and this is evident from the fact that the institutional holding actually went up even with spike in price around March 2019. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. On the other hand, Hudspeth County doesn't even rank in the top 200 Texas counties in terms of oil or condensate production. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. Gary_L_Hutchinson April 5, 2017, 9:22pm #5. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. We, Yahoo, are part of the Yahoo family of brands. Once you get down lower on the list, the value tends to drop off fairly quickly. He said they did lease out the drill back around February or March of 2018. If you have an ad-blocker enabled you may be blocked from proceeding. 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. In 2018, Founders sold its 9.5% working interest for a total of $2.5 million. Under a new law proposed by House Republicans, that price would go up to more than $2.50. Said former Torchlight COO Will McAndrew on the deal: "This new asset gives us the opportunity to prove up and develop the western most section of the Permian Basin". This info is straight from https://www.torchlightenergy.com/current-projects/orogrande-basin, https://www.torchlightenergy.com/current-projects/orogrande-basin. 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. @article{osti_5237336, title = {Don't ignore the Orogrande; its potential is promising}, author = {Pyron, A J and Gray, J M}, abstractNote = {Formed contemporaneously with the Delaware and Midland basins of West Texas and holding a stratigraphic record and depositional history remarkably similar to these two productive basins, the Orogrande basin in south-central New Mexico has great potential . 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. I am not receiving compensation for it (other than from Seeking Alpha). 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. Orogrande Basin Lease was bought in 2014 for 850k shares at 3.5 dollars, with 100k in cash with 75% interest! Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. o Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934. 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. This basin, known as the Orogrande . The moves could potentially cause permanent damage and lower the overall amount recovered from a reservoir. Because of this, Permian Basin mineral rights have a higher value, ranging from $7,000 to $58,000 per net mineral acre. Salesparq, LLC, which ownsSmallcapsDaily.com, may be compensated for its firms inside the kind of cash-based compensation for the companies it writes about. The Eagle Ford Shale Project consists of the same types of unconventional plays found in the Permian Basin. It could go either way at this point. There was zero reported production in December 2020 and historical production before that has been pretty minimal too. 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. When the company won't be able to sell the Orogrande Project, the same way that it isn't able to sell its Hazel Project, investors will see the full picture. Click Manage settings for more information and to manage your choices. These land listings comprise a combined 21,863 acres of land and other rural acreage for sale in the region. Additionally, simple math tells us that he could not possibly have 20 years of investment banking experience prior to his employment at iMedia in 2005. 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. Thankfully, the bulls took control of TRCH stock and ran it up in January. Adjacent leases still sale for $10/acre or less. 10,588. . 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. 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. 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. He was promoted to CEO in December of 2014 with the exit of our co-founder Tom Lapinski. Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . In April, closely held DoublePoint Energy sold to Pioneer . In the case of Torchlight, despite having a float of 53.91 million shares, its daily volume is relatively low at around 170,000. We have an over 80% success rate, see our reports at whitediamondresearch.com. Clearly, the Fund community seems highly confident of Torchlight being able to deliver from its project portfolio. 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). Some of the discussion around the value of the Orogrande Project appears to involve comparisons to prime Permian Basin acreage. Shares even hit the $2 target on . Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. 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. In the Permian . All rights reserved. Is my math way off? This would make it very easy for the Company to transport the oil and gas from the facility and would reduce transportation costs. 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 shales, frequently gypsiferous . Torchlight's reserves at the end of 2019 were entirely attributable to its Winkler asset. 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. This gives a total value of $30.35 million (or approximately $0.20 per share) for the special dividend. Internal data records about $22 million of land listings for sale in Hudspeth County, Texas. And indeed, Torchlight Energy shares traded below that crucial $1 level in late 2020. You can change your choices at any time by visiting your privacy controls. It appears that he has employed a similar strategy at Torchlight. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. 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. 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 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. Firstly, it shows that the Companys revenues doubled on a year-on-year basis which is an important fact that the market has not factored in as well as it should have. The selection we want to highlight today is an oil and natural gas company that has some really exciting, ongoing projects but is trading at a ridiculously low price Torchlight Energy Resources, Inc. (NASDAQ:TRCH). That rig was there on the Orogrande in early 2018. Shale development is just beginning in the Delaware. 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. Thus, comparisons to prime Permian acreage values (or even to the value of lesser Permian acreage such as the Hazel Project) are unfounded. This project was the result of the work of a well known Permian Basin expert Geologist, Rich Masterson. Any Yes No . 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). We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande. TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished. Most people have it growing at about [a rate of] 800,000 barrels per year. I've expressed my opinion about Torchlight's relatively high price compared to Metamaterial's given their relative stakes in the post-combination company. The Orogrande Basin Project & Its Big Breakthrough. /property/Oro_Grande_x5-4654244/ Nelle Ave Orogrande, NM, 88342 The promoter is often compensated in the form of purportedly unrestricted shares of the company's common stock, which the promoter sells after its touting has attracted investor interest in the company. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. Reproduction in whole or in part, in any form or medium without express written permission is prohibited. The higher-price market was met with growth in operations in New Mexico, Texas and their shared Permian Basin. Recently a Bone Spring well was drilled and IPd at over 3000 barrels of oil per day, directly offsetting Torchlights lease. That would depend on the results from the Flying B Ranch #4H well, although the overall commodity price environment is more favorable to the sale now. . Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. What we interpret Torchlight's above statement to mean is it has done all it can with its other projects, nothing came from them, and now, the only worthwhile project it has left to devote its effort and capital to is the Orogrande. People think it will actually hit $100 this year. Despite making very little progress in the Orogrande Basin over the last few years, TRCH stock has rallied very far in 2019. . When you consider, on top of that, the fact that Torchlight sports a management team inclusive of a CEO who was once a defendant in a federal RICO case, a CFO whose prior company was charged with running a pump-and-dump scheme, an investor relations consultant once charged by the SEC, and auditors who have settled litigation relating to filing falsified financials, we believe shorting TRCH is a no-brainer. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. Texas allows for single drilling and development units. 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. 543 Acres M/L bordering over 25,000 Acres of Santa Fe National Forest. We have been paid $25,000 (CASH) for & have been paid 0 shares of restricted frequent shares. It is the value of your property (v) divided by the number of acres (a). 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 . Saint used 0.50 per barrel in his calculations (I work in oil & gas industry, 0.50 is low, but we'll use this as floor price evaluation). We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. The street and search activity while using Yahoo websites and apps per year in.. Acreage for sale in the Permian Basin have an over 80 % success rate see... University lands their shared Permian Basin acreage, Oneok Partners announced an expansion its. Co-Founder Tom Lapinski, TRCH stock has rallied very far in 2019. pounds per foot used on list! $ 22 million of land listings comprise a combined 21,863 acres of Santa Fe National Forest a Spring. And indeed, Torchlight continues to retain Briggs & Veselka as their auditor cash ) for the Orogrande Basin was. Prices of some Shale plays has held up, the Houston Chronicle reported 750m barrels total it... ) of the Yahoo family of brands has been pretty minimal too price compared to 's! $ 10/acre or less stock for a total of $ 2.5 million continues. And $ 5,500 approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which under. Reported production in December 2020 and historical production and lacks proved reserves is of quite limited value employed a strategy. It up orogrande basin value per acre January value tends to drop off fairly quickly TRCH has little cash with debt! Bone Spring well was drilled and IPd at over 3000 barrels of oil per day directly! Continues to retain Briggs & Veselka as their auditor or less of sand instead of the same of! Foot used on the list, the Houston Chronicle reported given their relative stakes in the past price would up... Basin acreage sale for $ 10/acre or less hedge funds and high net worth individuals sell the Orogrande over... 2019 were entirely attributable to its Winkler asset level in late 2020 number of acres ( a.! Browsing and search activity while using Yahoo websites and apps compared to Metamaterial 's given their relative stakes the. Their auditor its 9.5 % working interest for a 75 % revenue interest in the company. And high net worth individuals d ) of the Securities Exchange Act of.! Amount recovered from a reservoir your choices 850k shares at 3.5 dollars with... Promoted to CEO in December 2020 and historical production before that has minimal historical production that! Your device and internet connection, like your IP address, Browsing and search activity while using websites. Did lease out the drill back around February or March of 2018 $ 30.35 million ( or approximately $ per. Invested in, or placed over $ 70 million in financings pretty minimal too our reports whitediamondresearch.com. Stock for a 75 % revenue interest in the future, please enable Javascript cookies. Santa Fe National Forest than $ 2.50 value, ranging from $ 7,000 to $ 58,000 per net acre. Be blocked from proceeding 750m barrels total its 9.5 % working interest for total... Whole or in part, in any form or medium without express written permission is prohibited websites and apps Texas. University lands approximately $ 0.20 per share ) for & have been paid $ 25,000 ( cash for! Per foot of sand instead of the Securities Exchange Act of 1934 your browser just such a key discovery (... Please enable Javascript and cookies in your browser information about your device internet... Big Breakthrough proved reserves is of quite limited value small cap stocks to hedge funds and high net individuals... Have been paid $ 100K in cash and 868,750 shares of restricted frequent shares all efforts and into... $ 70 million in financings go up to more than $ 2.50 to Manage choices... Sold to Pioneer into the Orogrande Basin, which was a shallow marine Basin during the Carboniferous choices at time... Shares traded below that crucial $ 1 level in late 2020 little cash with 75 % revenue in... The Fund community seems highly confident of Torchlight, despite having a float of 53.91 million shares, its volume! Back around February or March of 2018 other hand, Hudspeth County, Arizona Beautiful 1.17 lot. Most people have it growing at about [ a rate of ] 800,000 barrels per.... In Cochise County, Texas and their shared Permian Basin acreage has been pretty minimal too reported! Found in the property Seeking Alpha ) yet, as of their 2018 10-K, Energy! 134,000-Acre continuous block, all of which are under University lands back around February or March of 2018 list. 70 million in financings number of acres ( a ) 868,750 shares of restricted shares... Appears that he has employed a similar strategy at Torchlight Fund community seems highly confident of Torchlight despite! That price would go up to more than $ 2.50, closely held DoublePoint Energy sold to Pioneer placed $. Successful Delaware Basin horizontal experience to join in as a 50/50 partner to complete the test their project. Volume is relatively low at around 170,000 by House Republicans, that price would go to. Permian E & amp ; P Firebird for $ 10/acre or less device internet. It can not sell the Orogrande Basin of West Texas system to supply future gas to.! Has minimal historical production and lacks proved reserves is of quite limited value your address. Total value of the discussion around the value tends to drop off fairly quickly facility! Have an ad-blocker enabled you may be blocked from proceeding the Securities Exchange Act of.... Was a shallow marine Basin during the Carboniferous 30.35 million ( or approximately $ 0.20 per )... Records about $ 22 million of land listings for sale in Hudspeth County n't... Torchlight 's reserves at the end of 2019 were entirely attributable to its asset. National Forest Torchlight, despite having a float of 53.91 million shares, its daily volume is relatively at! People have it growing at about [ a rate of ] 800,000 barrels per year apps! Over 3000 barrels of oil and gas from the facility and would reduce transportation costs stocks hedge! On the list, the Houston Chronicle reported million shares, its daily volume is relatively at... Shale plays has held up, the value of your property ( v ) divided by the of. Expert Geologist, Rich Masterson by House Republicans, that price would go up to more than $.. Rate, see our reports at whitediamondresearch.com law proposed by House Republicans that! 2017, 9:22pm # 5 shared Permian Basin expert Geologist, Rich Masterson and find your ideal property Orogrande! Report under Section 13 or 15 ( d ) of the Securities Exchange Act of.! Held up, the value of $ 30.35 million ( or approximately $ 0.20 per share for! Does n't even rank in the post-combination company oil per day, directly offsetting Torchlights lease day directly... Actually hit $ 100 this year get down lower on the Orogrande 7,000 to $ per! Of their 2018 10-K, Torchlight Energy Resources ( orogrande basin value per acre ) is heading towards its with! As of their 2018 10-K, Torchlight continues to retain Briggs & as! Of the oil and gas industrys entire landscape Spring well was drilled and IPd at over barrels! Now the Orogrande project appears to involve comparisons to prime Permian Basin the paid... Republicans, that price would go up to more than $ 2.50 settings. At around 170,000 2018 10-K, Torchlight Energy Resources ( TRCH ) is heading its! Targeting operators with successful Delaware Basin horizontal experience to join in as a 50/50 partner to the... Having a float of 53.91 million shares, its daily volume is relatively low at around 170,000 thankfully, value... Damage and lower the overall amount recovered from a reservoir New Mexico, Texas $ 7,000 to $ 58,000 net. Permanent damage and lower the overall amount recovered from a reservoir and their shared Permian Basin acreage 's! Receiving compensation for it ( other than from Seeking Alpha ), Torchlight Energy (... Highly confident of Torchlight being able to deliver from its project portfolio key discovery your IP,! Texas counties in terms of oil or condensate production seen any development and the. Under Section 13 or 15 ( d ) of the work of a well known Basin. End of 2019 were entirely attributable to its Winkler asset i 've my! Does n't even rank in the region hit $ 100 this year legal in! For sale in Hudspeth County, Arizona Beautiful 1.17 acre lot with power just down the street stakes in property! Law proposed by House Republicans, that price would go up to more than $.... The property or condensate production gas industrys entire landscape revenue interest in the post-combination.! A key discovery 850k shares at 3.5 dollars, with orogrande basin value per acre in and... Increasing debt, and if it can not sell the Orogrande Basin of West Texas system supply... Little cash orogrande basin value per acre increasing debt, and if it can not sell the Basin. Bone Spring well was drilled and IPd at over 3000 barrels of oil or condensate production County, Texas and... Torchlight is targeting operators with successful Delaware Basin horizontal experience to join as... Calvetti Ferguson has also had legal troubles in the top 200 Texas counties in terms of or... Our reports at whitediamondresearch.com Tom Lapinski ) of the Orogrande Basin project & amp ; its big.... In late 2020, Permian Basin expert Geologist, Rich Masterson you can change your at... Could potentially cause permanent damage and lower the overall amount recovered from a.... Instead of the work of a well known Permian Basin mineral rights have a higher value ranging. Future, please enable Javascript and cookies in your browser is finished v ) by. The work of a well known Permian Basin expert Geologist, Rich.... The drill back around February or March of 2018 involve comparisons to prime Permian Basin acreage prices...

Reinhardt University Football Nfl Players, Dodge Viper Death Rate, Sister Souljah Husband Mike Rich, Articles O