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Torchlight Energy Resources, Inc. (TRCH) Expanding Presence in Domestic Oil and Gas Industry through New Prospect
Torchlight Energy Resources, Inc. (NASDAQ: TRCH) is an oil and gas Exploration and Production company with a primary focus on acquisition and development of highly profitable domestic oil fields. Based in Plano, Texas, the company currently holds interests in Texas, Kansas and Oklahoma, providing access to established plays including the Eagle Ford, Mississippian and Hunton. Torchlight’s focus on highly probable and profitable drilling and working interest programs that feature proven and bookable reserves has allowed the company to strategically position itself for tremendous growth moving forward.
Among Torchlight’s most promising projects is the Hunton Play, located in Logan and Kingfisher Counties, Oklahoma. The company’s interest in the area is divided into two unique projects: The Cimarron Project and The Chisholm Trail Project, of which Torchlight owns a 15 percent and 15.3 percent working interest, respectively. Combined, the two nearly contiguous projects cover an area of approximately 8,800 acres and fit well into the company’s strategic plan of leveraging new technologies to capitalize on established plays.
In September 2014, Torchlight acquired a 100 percent working interest in its 172,000 acre Orogrande Basin prospect. Through this agreement, the company received a five-year lease on the property that also carries additional five-year extension provisions. In March, Torchlight took a major step toward capitalizing on this interest by beginning drilling operations on its first well on the property. In May, the company built on this progress through the announcement that it had reached total depth on its initial test well.
“We are encouraged by the prospect that this well provides Torchlight shareholders,” stated Will McAndrew, chief operating officer of Torchlight. “Although early in the process, we are very encouraged by what we have encountered while drilling.”
In recent weeks, Torchlight has turned its attention toward investment in order to gain the flexibility required to maximize the value of its current projects. Earlier this week, the company announced that it had closed on the sale of nearly $10 million in Series A Convertible Preferred Stock. This move allowed the company to pay off its senior debt and prepare for continued growth into the future.
“We are thrilled to get this transaction completed with favorable terms and in the current market environment,” stated John Brda, CEO of Torchlight. “This new capital allows us to fulfill the commitments made to our stakeholders and further the development of our asset base.”
For prospective investors, Torchlight’s recent moves have made it an intriguing option in the coming months. As the company continues to develop its Orogrande Project and expand its production capabilities, Torchlight could be in a strong position to realize sustainable returns for the foreseeable future.
For more information, visit www.torchlightenergy.com
