Torchlight Energy Provides Operational Update
August 15, 2017
PLANO, TX-- - August 15, 2017 - Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company"), today provided an operational update covering the Company's West Texas Orogrande Basin Project and Hazel Project located in the Midland Basin area of the Permian.
Orogrande Basin Project:
Preparatory work is currently underway on the drill site for Torchlight's next well in its Orogrande Basin Project. This includes securing title opinion and building roads and location for the University Founders A-25 well which marks the first horizontal location in the Orogrande. Additionally, the existing B19 well is being converted to a water producing well providing on site access during drilling and stimulation of the new A-25 well. The Company expects the addition of onsite water access to be a significant cost savings for this and future wells drilled. Torchlight management is waiting for a definitive spud date from its drilling contractor who has met delays resulting from a change in that company's ownership unrelated to Torchlight's operations. Torchlight remains in compliance with its leasehold agreements with University Lands and will provide shareholders an update to timing as available.
Hazel Project:
With increased field activity having a similar impact on completion and stimulation backlog, the Company has been diligently working to secure the next available frac crew in proximity to perform the frac stimulation the Flying B Ranch 3H well in its Permian Basin Hazel Project. Torchlight has received an acceptable bid with a capable service provider that meets performance and pricing requirements set forth by management. The new frac date is scheduled for late September.
"We are navigating a bottleneck being experienced industrywide and certainly having to exercise patience," stated John Brda, Torchlight's Chief Executive Officer. "We expect to have timing answers shortly as it pertains to the Orogrande drilling contractor and remain diligent in selecting the best provider to meet our operational needs. This extra time has provided us with planning opportunities for our assets and we see current increased field activity as a bullish signal for our industry and the Basins we are exposed to."
