Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
In the next few weeks or so TRCH should release results from their first wildcat/production well in the Orogrande Basin. If this well is successful it will herald the discovery of a vast new oil field in West Texas with similar geology to the fabulously rich Midland Basin.
What results are we looking for? This well has only a 1000 ft. lateral frack. Most recent wells in the Midland are five to ten thousand lateral feet. TRCH kept this well small to reduce potential drilling/production complications. In my opinion 75 barrels plus per day would signify a major success.
FROM TRCH WEBSITE:
Torchlight owns 67.75% working interest in full ~133,000 net acre unit
Targeting 1300’ of pay – described as WolfPenn
Primary Pay zone is Pennsylvanian at 5200-6100
Pay zone depths – 4000’ to 6100’
Oil and high BTU gas – 80/20 mix expected
Basin formed at the same time as Delaware and Midland basins
Lease covers majority of the basin in Texas
Single Drilling and Development Unit Agreement on University Lands holds entire Block
If 100,000 acres prove prospective - project would yield 156 Sections
Based on analogous Midland Basin EUR’s – potential EUR’s of 4 to 6 million barrels per section
Recent horizontal well results provide scientific data confirming system is slightly over-pressured (.64 pressure gradient compared to normally pressured Midland Basin assets)
Well known Permian Basin expert Geologist, Rich Masterson originated the Wolfbone Play and developed thesis for the Orogrande Basin (WolfPenn)
According to the article this is the benchmark we should be looking for in terms of production on a 1000ft lateral well.
"A similar well in the Midland Basin would produce 100 BOEPD. The same well in the Delaware Basin would produce 200 BOEPD. Torchlight hopes to hit in between the Midland numbers and the Delaware numbers. Well pressure is higher than expected and that's a good sign," Moriarty added."
Texas Small-Cap Reports Orogrande Horizontal Well Stimulation Success as It Acquires Additional Acreage
Source: Streetwise Reports (5/16/18)
An independent small-cap Texas oil company moves forward with oil production in the Orogrande and continues to grow by adding property in the Delaware Basin.
Torchlight Drill Pad
Torchlight Energy Resources Inc. (TRCH:NASDAQ) announced at the end of April that the University Founders A25 #1H horizontal well in the Orogrande project has undergone a successful stimulation. Altogether, six stages underwent fracture stimulation at 60 bpm using 2.4 million pounds of sand. Flow testing was initiated and stage plugs have been drilled. Also, within the Penn formation, evaluation of the ~1000-foot lateral interval has begun.
John Brda, CEO of Torchlight Energy, stated, "We are very pleased that all six stages of the stimulation were delivered according to plan. The well treated as expected and the entire proppant package of each stage was placed as designed. Matrix fracture stimulation was accomplished, and we believe this to be a first in the Orogrande Basin."
"I think we're going to see a much bigger payoff as the company releases more well results." - Keith Kohl, Pure Energy Trader
The Orogrande project is located in the Permian Basin, and is the flagship project for Torchlight. The company is also planning to drill two vertical wells in the Orogrande project, one in the northern section and the other in the southern, to further explore the geology of the area.
Bob Moriarty wrote in 321 Gold, Torchlight Energy "has just finished drilling the first horizontal test well in the all-important Orogrande field where the company holds a 67.5% working interest. The University Founders A25 1H well was drilled to 5,500 feet vertical and the company has finished a 1,000-foot lateral. The company is not trying to maximize the production from the well. If they wanted to do that, they would do a 10,000-foot lateral. They want to use the 1,000-foot lateral as a benchmark."
"A similar well in the Midland Basin would produce 100 BOEPD. The same well in the Delaware Basin would produce 200 BOEPD. Torchlight hopes to hit in between the Midland numbers and the Delaware numbers. Well pressure is higher than expected and that's a good sign," Moriarty added.
Keith Kohl wrote in Pure Energy Trader on May 3, "I can't stress the potential of the Orogrande Basin enough. The company owns a 67.5% working interest in approximately 133,000 net acres, and the play's primary pay zone is the Pennsylvanian, which can be found between 5,200' and 6,100'. Let's assume for a moment that 100,000 acres were prospective, we'd be looking at about 156 sections for the project. And based on similar Midland Basin EURs, we're talking about 4 to 6 million barrels per section."
"Even though the stock has lost a little bit of ground since mid-March, I think we're going to see a much bigger payoff as the company releases more well results," Kohl concluded.
Torchlight also announced that its partner on the Winkler project in the Delaware Basin, MECO IV, has begun to drill the first well, the UL 21 War-Wink 47 #2H. According to the company, "the plan is to evaluate the various potential zones for a lateral leg to be drilled once logging is completed. The company expects the most likely target to be the Wolfcamp A interval." This well is being drilled on 320 acres that offset the original leasehold Torchlight acquired in December 2017.
Torchlight's carried interest is being applied to this new well and will "allow MECO IV to drill and produce potential revenues sooner than originally planned. The primary leasehold is a 320-acre block directly west of the current position and will allow for 5000-foot lateral wells to be drilled."
CEO Brda stated, "We are excited to be entering the Delaware basin with our technically strong operating partner MECO IV out of Denver. The well is in an excellent area with premier offset operators making excellent wells in multiple pay zones. We look forward to MECO executing on the technical and scientific aspects of the project, ultimately delivering a 5000' lateral in the best pay zone identified."
Late last month, Torchlight closed an underwritten public offering of 5,750,000 million shares at $1.15 per share, resulting in net proceeds of approximately $6 million. ROTH Capital Partners was the sole manager of the offering. The company stated that it intends to use the proceeds "primarily to meet its drilling obligations at its Hazel Project and Orogrande Project and for general corporate purposes."
Torchlight has about 69 million shares outstanding, of which approximately 20% are closely held. Its market cap is around $82 million.
Read what other experts are saying about:
Torchlight Energy Resources Inc.
Want to read more about Oil & Gas - Exploration & Production? Sign up to receive the FREE Streetwise Reports' newsletter.
Newsletter Sign-Up
Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Torchlight Energy. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Torchlight Energy. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. 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, a company mentioned in this article.
Disclosures from 321 Gold, Torchlight Energy, Feb. 27, 2018
Torchlight is an advertiser. I have owned shares for over three years. Naturally I am biased. Do your own due diligence.
Pure Energy Trader, Torchlight Energy, May 3, 2018
Neither the publisher nor the editors are registered investment advisors; nor have either publisher or editors been compensated for this publication, or ongoing coverage. Keith Kohl owns shares of Torchlight Energy.
Related Articles
Micro-Cap Oil & Gas Explorer's First Permian Basin Well Flowing 465 Barrels/Day
Source: Streetwise Reports (12/13/2017)
Exploration is just beginning for this oil and gas E&P with large tracts of prime land in the Permian Basin in Texas.
read more >
Shining a Light on an Out-of-Favor Oil Stock
Source: Clive Maund for Streetwise Reports (12/07/2017)
Technical analyst Clive Maund charts an oil and gas explorer that he believes is under the radar of most investors.
read more >
Prospects of Small-Cap Texas Energy Company Increase as the Price of Oil Rises
Source: Streetwise Reports (05/15/2018)
This small-cap energy firm's Permian Basin drilling and testing have been showing good results, and the company has just started.
read more >
Following Q1/18 Production Beat, Oil/Gas E&P to Launch Buyback
Source: Streetwise Reports (05/12/2018)
Pavel Molchanov, an analyst with Raymond James, reviewed this energy firm's favorable first quarter production numbers and cash position.
read more >
Brand-New Oil Play in this Overlooked Texas Region
Source: Streetwise Reports (05/08/2018)
Advancements in fracking and a rising oil price are putting the Red Cave formation back on the map, and a small-cap energy company is acquiring a large land package, cementing its position in this low-cost area.
read more >
Merger of Two Independents to Create 'Largest U.S. Refiner'
Source: Streetwise Reports (05/07/2018)
Raymond James reported on the recently announced proposed deal.
read more >
This Year Looks Bullish for Texas Energy Services Firm
Source: Streetwise Reports (04/30/2018)
Praveen Narra of Raymond James reviewed how this company should perform throughout the year and why.
read more >
New Oil Development in Texas Panhandle Showing Results
Source: Maurice Jackson for Streetwise Reports (04/24/2018)
Molori Energy CEO Joel Dumaresq, in conversation with Maurice Jackson of Proven and Probable, discusses his company's newest exploration focus.
read more >
This Oil Stock Is 'At Last Ready to Make Big Gains'
Source: Clive Maund for Streetwise Reports (04/23/2018)
Technical analyst Clive Maund charts an oil company that has announced it will sell off one of its assets.
read more >
Texas Panhandle Oil Stock at 'Great Entry Point'
Source: Clive Maund for Streetwise Reports (04/23/2018)
With the price of oil continuing to rise, technical analyst Clive Maund charts a company that he believes is in position to benefit.
read more >
Want to read more about Oil & Gas - Exploration & Production investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!
Recommended Articles
Micro-Cap Oil & Gas Explorer's First Permian Basin Well Flowing 465 Barrels/Day
Source: Streetwise Reports (12/13/2017)
Shining a Light on an Out-of-Favor Oil Stock
Source: Clive Maund for Streetwise Reports (12/07/201
Prospects of Small-Cap Texas Energy Company Increase as the Price of Oil Rises
Source: Streetwise Reports (05/15/2018)
read more >
Following Q1/18 Production Beat, Oil/Gas E&P to Launch Buyback
Source: Streetwise Reports (05/12/2018)
https://www.streetwisereports.com/article/2018/05/16/texas-small-cap-reports-orogrande-horizontal-well-stimulation-success-as-it-acquires-additional-acreage.html
Torchlight Energy Successfully Delivers Stimulation on First Horizontal Well in the Orogrande Project
PLANO, TX -- (Marketwired) -- 04/30/18 -- Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or the "Company"), today announced that stimulation of the Penn formation has been successfully completed on the University Founders A25 #1H horizontal well in the Orogrande Project. A total of six stages were fracture stimulated using 1.6MM pounds of sand at 60 bpm. Average stage breakdown pressure was 4,500 psi. The stage plugs have now been drilled and the flow testing phase has begun.
"We are very pleased that all six stages of the stimulation were delivered according to plan," stated John Brda, CEO of Torchlight Energy. "The well treated as expected and the entire proppant package of each stage was placed as designed. Matrix fracture stimulation was accomplished, and we believe this to be a first in the Orogrande Basin. Flow-back, testing and evaluation of the ~1000' lateral interval in the Pennsylvanian formation has begun. It certainly is exciting to be at this point in the project and we look forward to updating our shareholders in the coming weeks, as we know more information. Based on all technical data we have acquired through the drilling and completion phase of the project our expectations are high we will see oil production, but only after at least some load recovery. Having Maverick Operating on location to supervise the stimulation process delivered by CUDD Energy Services went very smoothly. Both did an excellent job."
Torchlight Closes Offering raising $6 million:
Whoever bought these shares must believe in the odds for success at the Orogrande wildcat. In my view a huge vote of confidence.
Item 8.01 Other Events.
On April 23, 2018, Torchlight Energy Resources, Inc. (the “Company”) issued a press release announcing that it had closed its previously announced underwritten public offering of shares of common stock at a public offering price of $1.15 per share. The Company sold a total 5,750,000 shares under the offering, which amount includes the full exercise of the over-allotment option. The net proceeds to the Company, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company, were approximately $6.0 million. The press release is attached hereto as Exhibits 99.1.
https://www.sec.gov/Archives/edgar/data/1431959/000165495418004267/trch_8k-17358.htm
Torchlight Energy Resources, Inc. Prices Underwritten Public Offering of
PLANO, TX -- (Marketwired) -- 04/19/18 -- Torchlight Energy Resources, Inc. (NASDAQ: TRCH), an energy company engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States, today announced the pricing of an underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $1.15 per share. Torchlight Energy Resources, Inc. has also granted to the underwriter a 30-day option to acquire an additional 750,000 shares to cover over-allotments in connection with the offering. After the underwriting discount and estimated offering expenses payable by Torchlight Energy Resources, Inc., it expects to receive net proceeds of approximately $5.37 million, assuming no exercise of the over-allotment option.
The offering is expected to close on or about April 23, 2018, subject to the satisfaction of customary closing conditions.
Roth Capital Partners is acting as sole manager for the offering.
Torchlight Energy Resources, Inc. intends to use the net proceeds from the offering primarily to meet its drilling obligations at its Hazel Project and Orogrande Project and for general corporate purposes.
New Seeking Alpha TRCH article:
Long Ball Play, Torchlight Energy And Its Bet On The Orogrande
https://seekingalpha.com/article/4163182-long-ball-play-torchlight-energy-bet-orogrande
This per undeveloped acre price is incredible for the Permian. It bodes very well for TRCH:
"At a $9.5 billion acquisition price," Freeman explained, Concho would pay an estimated 75K per undeveloped acre, which compares to the $35–40K per acre rate that other companies paid in recent transactions. "This deal yields the highest acreage valuation we have seen in the space," he relayed.
"The rich acreage value" reflected in this acquisition could benefit the stock of other Permian-focused companies, Freeman added. "Today’s deal highlights the recent disconnect between public energy equities and asset valuations, likely boding well for the entire group."
https://www.streetwisereports.com/article/2018/03/30/oil-gas-e-amp-p-to-buy-permian-acreage-in-immediately-accretive-deal.html
Company News
Torchlight Energy Announces Participation at Upcoming Investor Conferences
Download PDF
PLANO, TX -- (Marketwired) -- 03/29/18 -- Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or "the Company"), today announced that John Brda, CEO of Torchlight, will present at the following investor conferences in April 2018.
Oil & Gas Investment Symposium (OGIS)
Presentation: 11:05 a.m. ET
Dates: Monday, April 9, 2018
Location: Sheraton New York Times Square Hotel
Webcast: Link provided on Conference and Company websites
The MicroCap Conference New York 2018
Presentation: 9:00 a.m. ET in Track 4
Dates: Tuesday, April 10, 2018
Location: The Essex House
Conference participation is by invitation only and registration is mandatory. For more information on the conferences or to schedule a one-on-one meeting, please contact Derek Gradwell at dgradwell@mzgroup.us.
Hopefully, these presentations will generate increased interest in the Oro Grande project which TRCH should start the frack this month.
Torchlight: High Noon In West Texas
Well written article by David Jennings.
"The take-away is that even if the Orogrande should fail the low-end value of the company is still in the neighborhood of $115 million, or roughly $1.90/share (based on 60.6 million shares). If the Orogrande is successful the simplified price estimate works out to roughly $16.50/share."
https://seekingalpha.com/article/4157553-torchlight-high-noon-west-texas
The following was written by an investment advisor:
TORCHLIGHT ENERGY RESOURCES...
originally published Thursday, March 08, 2018
Torchlight Energy was the subject of an Email alert sent out at 2.04 pm EST, which read as follows…
“Torchlight Energy major breakout alert
The huge short seller who has kept a lid on Torchlight Energy (TRCH on NASDAQ CM, last $1.23) for so long is soon to be annihilated, because the company is doing horizontal Frack drilling with results due out soon that for various reasons are expected to be positive, and the company has a huge land position that could contain a vast quantity of oil.
Technically the stock is under heavy accumulation whilst at the same time being suppressed by the short seller, but he is likely to be blown away once the results become available. Price looks like a coiled spring on charts. IMMEDIATE STRONG BUY. Full update later.”
Evidently you are taking me more seriously these days, because after this alert was sent out Torchlight took off and ended up 11.7% higher on the day. Here is the chart for the time just before the alert was sent out…
And here is the chart for the close…
Although this was a good gain, it did not constitute a breakout and we would have to be very fortunate for our short seller friend not to show up again at some point soon and beat it back down again. However, the key point to note, and which is the reason that we disregarded him and went for Torchlight today, is that for both fundamental and technical reasons he is almost “out of time”, and if he doesn’t voluntarily remove himself from the scene, which will cause a sizable rally, he will be “blown out of the water” which will also cause a sizable rally. Why? - because fundamentally Torchlight is due to complete drilling of a horizontal Frack well soon, and there are various reasons to expect the results from this well to be good, and if they are it will imply that there is an awful lot of oil under Torchlight’s extensive acreage. So if the results are good the stock will soar, with the price spike doubtless accentuated by the plight of the short seller, and as we will now proceed to see, the stock is in position to do just that, after completion of a giant 3-year long base pattern.
With respect to the strong technicals, on the 8-year chart we can see all of Torchlight stock’s history from its inception, and clearly it has been long and tortuous. The first important point to observe on this chart is that it is now historically cheap, since it got as high as about $5.50 back early in 2014. Next, it appears to have been marking out some kind of base pattern from early 2015. Whilst it is initially rather hard to define what this base pattern is, on close inspection we see that it is in fact a giant Cup & Handle base, with an embedded Double Bottom within the Cup part of it, and it was the destiny of our short seller friend to push it lower and lower over the past year to form the Handle part of the pattern, which it is very important to observe appears to be completing above the line of support shown. The Accum-Distrib line and On-balance Volume are both positive relative to price, with the former looking very impressive, as it is already close to making new highs. These volume indicators are both bullish and imply an imminent upside breakout from the pattern.
Torchlight has disappointed investors for a long time now, including us as we had expected more of it, and most, including us, have left for pastures new and not bothered with it. For this reason the majority will miss the breakout and new bullmarket when it occurs, but on this occasion not us, as we like to check back on situations like this from time to time. The setup on our long-term chart looks very potent indeed, especially because it is now “off the radar” of most investors.
Conclusion: it looks very probable that Torchlight will break out soon into a powerful bullmarket, and it remains a strong buy here after this afternoon’s gain as it still only at the point of breaking out. Any short-term dip caused by the short seller will be occasion to accumulate more of it, but with the approach of the drilling results, it is less and less likely to react back significantly.
Torchlight Energy website
Torchlight Energy Resources Inc, TRCH on NASDAQ CM, closed at $1.33 on 8th March 18.
10K has been released:
The improvement in "non-memantine patients in the Completers Group...showed an SIB improvement of 6.24 for an overall treatment of 6.36 from baseline (p=0.0488)" is the key to understanding the recent increase in enterprise value of Neurotrope.
From page 4:
Additional analyses compared 20 µg dose patients who were on baseline therapy of Aricept vs. patients off Aricept. No significant differences were observed. Another analysis compared the 20 µg dose patients who were on or off baseline therapy of memantine. Post-hoc analysis comparing SIB scores in non-memantine versus memantine patients found the following:
·
At week 15, non-memantine patients in the mITT Group treated with 20 µg (n=14) showed an SIB improvement of 5.88, while the placebo patients (n=11) showed a decline in their SIB scores of - 0.05 for an overall treatment ? of 5.93 from baseline ( p =0.0576).
·
At week 15, non-memantine patients in the Completers Group treated with 20 µg (n=14) showed an SIB improvement of 6.24, while the placebo patients (n=11) showed a decline in their SIB scores of - 0.12 for an overall treatment of 6.36 from baseline (p=0.0488).
·
Patients taking memantine as background therapy in the 20 µg (n=20) and control (n=22) groups showed no improvement in SIB scores.
Memantine, an NMDA receptor antagonist, is marketed under the brand names Namenda®, Namenda® XR, and Namzaric® (a combination of memantine and donepezil) for the treatment of dementia in patients with moderate-to-severe AD. It has been shown to delay cognitive decline and help reduce disease symptoms.
Neurotrope is planning a replication trial for the safe, effective 20 µg dose protocol for advanced AD patients not taking memantine as background therapy to evaluate improvements in SIB scores with an increased number of patients. We are in discussions with investigators at leading academic institutions to collaborate on the design and conduct of the next trial, which is expected to begin in the first half of 2018.
To the extent resources permit, we intend to pursue development of selected technology platforms with indications – such as Fragile X disease - related to the treatment of AD and other neurodegenerative disorders based on our current licensed technology and / or technologies available from third party licensors or collaborators.
https://seekingalpha.com/filing/3924750?app=1
Thanks for your insightful and informative reply coach.
Given that Bryostatin has not shown any significant side effects in many earlier cancer studies nor in their own Phase 2 study, I recall NTRP indicated they would ask FDA approval for Compassionate and/or Open Label use in their previous Phase 2 patients whose families requested it.
If the FDA granted Compassionate/Open Label use would that change your opinion?
FDA FAST TRACK:
Neurotrope stated in its January 5th PR that:
"Neurotrope is planning a confirmatory study in advanced AD patients not taking memantine as background therapy to evaluate whether the improvements in SIB scores in those patients can be replicated. The company is in discussions with a leading academic institution to design and conduct the trial, which is expected to begin in the first half of 2018.
"Neurotrope's next clinical trial will focus on the 20µg dose, which showed evidence of sustained cognitive improvement in advanced Alzheimer's disease patients," said Dr. Alkon. "It will be designed to confirm, with increased power, the increases in SIB scores observed among memantine-free patients in the recently completed Phase 2 trial. The company has the financial resources required to complete the planned study."
My assumption is that NTRP will request Fast Track status for this confirmatory study. If FDA Fast Track is granted what is the opinion of this board on how the FDA views the significance of Fast Track status.
Does it generally indicate that the FDA sees a higher likelihood for success when Fast Track is granted in a follow up study??
February 20, 2018 08:00 ET
Torchlight Announces Reaching Total Depth on Its first Horizontal Test Well in the Orogrande Basin
PLANO, TX--(Marketwired - February 20, 2018) - Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or "the Company"), today announced that its University Founders A25 1H well has reached total depth with a 1000-foot lateral leg in the primary pay zone from a 5500-foot vertical depth. The well has been cased and cemented and is awaiting stimulation. The Company plans to complete the well in late March to early April based on vendor schedules and frac design preparation. The next step is to establish the best possible frac stimulation package utilizing data gathered from shale logs, imaging logs, sidewall cores, mud logs, shows and samples.
"I am very pleased with the geological results of the drilling portion of this well," stated Rich Masterson, expert Geologist. "We encountered some difficulties not related to pay zones in drilling that we pushed through. More importantly, the data we were hoping to see was verified once again through our sidewall cores, shale logs and our newly executed imaging log. We saw excellent potential pay in the Pennsylvanian section, our primary target, with better than average permeability and porosity. We also believe reservoir pressure may be somewhat higher than normal which was previously unknown. We estimate the reservoir pressure gradient may be as high as .6 pounds per square foot because 11.5 ppg mud weight was needed to maintain hole integrity.
As we continue to drill and develop this play we will eliminate many of the common concerns and pitfalls of a frontier exploration program. I am excited about stimulating the lateral leg as I believe it contains 1000 feet of excellent potential pay with great shows, background gas and above average pressure."
"This is a huge step for Torchlight," stated John Brda, CEO. The decision was made to TD the well after drilling a 1000-foot lateral. This should allow for a sufficient test of economic horizontal oil drilling potential in the Orogrande Basin and give us a great indicator of how the reservoir may perform at different lateral lengths. We are excited for our shareholders in anticipation of finally testing the horizontal nature of this play and look forward to encountering those results this spring."
Update on Hazel Project -- Flying B Ranch #3H:
While we are producing daily, we have recently experienced issues with the down hole pump and diesel-powered generator. We are working on running three phase electricity to the property to mitigate and prevent future problems. Based on internal estimates and the one day 465 barrels high rate of oil production previously announced on the 3H well, the Company expects 10,000-foot laterals could reach 650 BOPD Initial Potential production. On a single well basis Torchlight could achieve Internal Rates of Return estimated at 40% at that level and with current oil prices.
As to who is going to pay for the additional wells it is my understanding their partner on the project is providing the financing:
"Torchlight owns 47.5% working interest upon full $50 mm spend commitment from operating partner, Founders Oil and Gas. - 133,000 acres" as stated on the TRCH website.
This should not be dilutive to stockholders.
Every stockholder should listen to TRCH's presentation at the Noble Annual Small Cap & Emerging Growth Investor Conference on Tuesday, January 30, 2018 (see link below).
The Oro Grande is the big enchilada. If Torchlight proves out this play there is an estimated 1500 long horizontal drilling well locations. The first production well is drilling the horizontal leg at this moment, it will then be fracked. TRCH plans to drill 6 to 10 wells to prove-up the field. Three wells will be drilled by end of this year.
http://noble.mediasite.com/mediasite/Play/6bbbc5b2cb5a43198f92f7fbb9348fef1d
In a conversation I had with Dr. Alkon last year he told me that they were looking for a SIB improvement of 3 or better in the Completers Group. They doubled that with the non-memantine patients!
"At week 15, non-memantine patients in the Completers Group treated with 20µg (n=14) showed an SIB improvement of 6.24, while the placebo patients (n=11) showed a decline in their SIB scores of -0.12 for an overall treatment ? of 6.36 from baseline (p=0.0488)."
Drilling down into the data paid off big time:
"The post-hoc analysis comparing SIB scores in non-memantine versus memantine patients found the following:
At week 15, non-memantine patients in the mITT Group treated with 20µg (n=14) showed an SIB improvement of 5.88, while the placebo patients (n=11) showed a decline in their SIB scores of -0.05 for an overall treatment ? of 5.93 from baseline (p=0.0576).
At week 15, non-memantine patients in the Completers Group treated with 20µg (n=14) showed an SIB improvement of 6.24, while the placebo patients (n=11) showed a decline in their SIB scores of -0.12 for an overall treatment ? of 6.36 from baseline (p=0.0488).
Patients taking memantine as background therapy in the 20µg (n=20) and control (n=22) groups showed no improvement in SIB scores."
Here is a positive report on TRCH:
Micro-Cap Oil & Gas Explorer's First Permian Basin Well Flowing 465 Barrels/Day
https://www.streetwisereports.com/article/2017/12/13/micro-cap-oil-gas-explorer-releases-high-production-numbers-from-initial-well-in-permian-basin.html
TRCH is constantly manipulated by short sellers. Check out the website of volumebot for aggregate Short Volume Data Reported to FINRA (I have found this website to be a real revelation - finally daily short figures).
http://volumebot.com/?s=trch
Date Short Volume Total Volume Short Percent
12-13-2017 267,174 494,625 54.02%
My opinion is the shorts are in the drivers seat as to TRCH stock price and will be until there is game changing news such as a major oil discovery in the Orogrande basin by TRCH or a partnership/buy-in with a much larger operator.
Torchlight is making very significant progress in the fourth quarter:
-- in the Midland Basin Hazel Project the Flying B Ranch well #3 is under completion with great production. The Flying B Ranch well #4 is now being drilled with the expectation of similar results .
--the Orogrande Basin Project is drilling what hopefully will be its first production well in an area that has the potential to be another Permian Basin. If Project Geologist Rich Masterson's analysis is correct and this well is a success Torchlight's huge drilling rights will vastly increase TRCH's market value.
--the Delaware Basin Project will drill in the 2nd quarter of next year in a very productive area.
Torchlight is undervalued at this juncture in my opinion given the developing production in their Hazel Project. If the company is successful in proving up the Orogrande Basin Project we are going to see many, many multiples of the current price.
Torchlight Enters Agreements to Enter Prolific Delaware Basin
MarketwiredNovember 15, 2017
PLANO, TX--(Marketwired - November 15, 2017) - Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company"), today announced that the Company has contracts in place to enter into an acreage position in the prolific Delaware Basin Wolfbone play in Winkler County, TX through transactions with its Chairman Greg McCabe and a private Denver Based E&P. The net effect of the transactions would provide Torchlight with 10.72% WI in a stacked 640-acre block in Winkler County that would allow for the drilling of 10,000 feet laterals. The acreage is expected to contain 5 prospective benches or "stacked pay zones" where as many as 20 long laterals could be drilled (based on current spacing). Additionally, the transactions provide for Torchlight to be carried to the tanks on the first well in the acreage block by the Denver based E&P, to be spud within 180 days of closing, and Torchlight is to receive approximately $6 million in cash.
Torchlight will issue McCabe a $3.25 million three-year interest only promissory note bearing interest at 5% per annum and 2.5 million shares of Torchlight common stock as a part of the transactions. There were no brokers involved in the transactions. Closing is set for on or before Nov. 29th, subject to certain closing conditions including title opinions.
"We are happy to announce these transactions," stated John Brda, Torchlight's CEO. "They will provide liquidity for our projects and give us exposure to the Wolfbone Play in the Delaware Basin. The acreage position lies in an area of Winkler County with excellent offset operators who have been achieving good drilling results. We look forward to participating in this play in mid-2018."
Good day, up ten percent on five times normal volume.
TRCH has 19 contiguous sections with a potential of as many as 300 horizontal drilling locations targeting the Wolfcamp A and B formations
This well is targeting the Wolfcamp play which is the most productive play in the Permian Basin but the well also fracked other promising formations.
Signs look good for blast off.
Given the price action it looks like TRCH has a successful well. Still waiting results but this stock good go ballistic.
Hugh potential with this first Wolfcamp well in the Permian Basin. TRCH has 19 contiguous sections with a potential of as many as 300 horizontal drilling locations targeting both the Wolfcamp A and B formations.
What kind of production figures would make you happy?
Informative Bloomberg article:
The Permian Basin Still Has an Awful Lot of Oil
https://www.bloomberg.com/view/articles/2017-09-27/the-permian-basin-still-has-an-awful-lot-of-oil
According to the Aug 28th press release:
"Following the frac delivery, a rig will be brought onsite to drill out the plugs beginning flowback which is expected to commence in the second week in September."
TRCH should be expecting results shortly. Based on other wells in this area what are the production expectations from this well?
Torchlight Completes Drilling First Horizontal Well in its Permian (Midland) Basin Acreage
MarketwiredJuly 18, 2017
PLANO, TX--(Marketwired - July 18, 2017) - Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company"), today announced that it has completed the drilling stage of the Flying B Ranch #3H well.
The horizontal leg at Total Depth was ~8,300 feet in the Wolfcamp A Bench. Preliminary indications from mud log and gamma ray MWD readings indicated a consistent exposure to the planned pay zone over the entire length of the lateral.
The Company plans to employ a 25 stage frac over a 5,000-foot section of the lateral wellbore where casing was successfully set and cemented in place. Frac design will be consistent with the latest technology being utilized by others in the Midland Basin.
"I am pleased with the drilling program delivered by Torchlight's operating partner Maverick on this well," stated Rich Masterson, project Geologist. "We have managed to stay in zone and the logs indicate that we should be able to frac this well in a manner consistent with other Midland Basin wells targeting the Wolfcamp A interval. We encountered good shows of oil in the samples and good gas on the mud log chromatograph."
"We are excited to have completed the drilling phase of our first horizontal well in the Permian Basin and look forward to delivering the frac to bring this well onto production," stated John Brda, Torchlight's CEO. "We are scheduling the procedure on a 'first available' basis and will target the 5000 feet of Wolfcamp A to create a baseline for 'barrels per 1000 feet of lateral' comparisons to other Midland Basin Wolfcamp A completions. Our first-generation stimulation technique will be evaluated and refined for future wells in the project. Ultimately we are targeting maximum production with lowest declines."
While drilling, the Company captured images and video which can be viewed on the Company website at http://www.torchlightenergy.com/current-projects/midland-basin.
Additionally, Torchlight stimulated the Flying B Ranch #2 vertical test well in the Leonard formation and is in the cleanup and testing phase of this secondary target horizontal interval. Torchlight will continue to report results as available.
About Torchlight Energy
Neurotrope’s stock is set-up for another substantial price run:
According to Yahoo the outstanding share count is 7.89 million and the float is at 5.32 million .
Supply and demand can be crucial when a low float stock like NTRP is expecting significant news events in the near term. News, and/or the expectation of, will drive the stock price and provide investment opportunities. What we have seen in the last week or so is just the beginning. The stock is up 50% on low daily volume. If daily volume was to double or triple on positive news the stock could go on a tear.
That is where I believe we are headed.
Bullish outlook from Insider Financial
Neurotrope Inc (NASDAQ:NTRP) Is Running But It’s Still Cheap
https://insiderfinancial.com/neurotrope-inc-nasdaqntrp-is-running-but-its-still-cheap
Torchlight should be a couple of weeks out from drilling their first horizontal well in the Wolfcamp formation which probably explains recent upward price appreciation.
"The Flying B Ranch #3H is being permitted and will be spud sometime in mid to late June. This will be the first horizontal test in the project for Torchlight. The Company plans to begin with a vertical pilot to collect scientific information and then immediately drill a ~7500' lateral leg.
http://finance.yahoo.com/news/torchlight-announces-successful-vertical-test-120000633.html"
I would add this Quote:
"We are very proud of the many achievements this company has made over the past several years and look forward to updating our shareholders in the coming weeks on our commercialization strategy followed by the announcement of initial contracts,” concluded Ms. Griffin."
Shareholder base likely to increase dramatically:
From OTC website:
IMUN Security Details
Share Structure
Market Value1
$19,008,760 a/o May 19, 2017
Authorized Shares
500,000,000 a/o May 12, 2017
Outstanding Shares
304,140,164 a/o May 12, 2017
-Restricted
152,286,587 a/o May 12, 2017
-Unrestricted
151,853,577 a/o May 12, 2017
Held at DTC
124,619,391 a/o May 12, 2017
Float
7,986,000 a/o Dec 11, 2015
Transfer Agent(s)
ClearTrust, LLC
Shareholders
Shareholders of Record 773 a/o Mar 31, 2017
Short Selling Data
Short Interest
29,908 (66.84%)
Apr 28, 2017
Significant Failures to Deliver
No
This is the news we have all been waiting for. Highlights from the press release below outline the importance of NAFDAC approval. Marketing agreements likely to follow.
"National Agency for Food and Drug Administration and Control (“NAFDAC”) approval paves way for Immune Therapeutics’ first significant revenue channel
Immune Therapeutics’ goal to capture 20% share of Nigeria’s billion-dollar HIV/AIDS treatment market
Lodonal to represent a significant “breakthrough” as the first affordable, non-toxic adjunct therapy for HIV/AIDS
Company expected to strengthen management team to spearhead commercialization throughout Africa
With initial contracts expected shortly, company on-track to meet guidance of achieving profitability by end of current fiscal year"
Immune Therapeutics Announces NAFDAC Approval of Lodonal™ for the Treatment of HIV in Nigeria
May 22, 2017
http://www.otcmarkets.com/stock/IMUN/news?id=159699
Neurotrope Alzheimer's Trial Shows Top Line Efficacy In Hardest To Treat Patients
May 2, 2017 5:13 PM ET
|
2 comments
|
| About: Neurotrope, Inc. (NTRP), Includes: BIIB
by: Sharon di Stefano
Sharon di Stefano
Biotech, healthcare, small-cap, special situations
Get email alerts
Summary
Results pave the way for future, larger trials.
A novel method known for accuracy showed Alzheimer’s drug is effective.
Misunderstanding of data collection technique led to the stock's decline.
Risks involve translation of results to bigger trials.
A new world of clinical trial data testing is upon us. Older methods to determine a drug's worth are being replaced by more robust, accurate methods that, through advanced computing, better predict future results. A pioneer using 'modified intent-to-treat' (mITT) analysis, Neurotrope, Inc. (NASDAQ:NTRP) released its first top line results for lead compound Bryostatin in very sick Alzheimer's Disease (AD) patients, with superb results.
Its Phase IIb of 147 patients underwent different dosages of Bryostatin along different timelines to see which worked best. Although the study was geared mostly for safety and tolerability, a surprise ensued - efficacy. Even more impressive was the generation of statistically significant results that exceeded FDA standards, which hold that a 'p-value', defined as the probability that good results are not due to chance, should be less than 0.1 in Phase II trials.
In other words, 90% of patients are responding to a treatment. Neurotrope, on two standardized tests blessed by leading AD organizations, delivered figures even lower, meaning greater probability of results not being accidental.
Investors should recognize that Neurotrope's study was not necessarily about p-values but more about trends in cognitive improvement, clearly shown, and can lay the groundwork for a larger study. Commenting on Bryostatin results in my conversation with Dr. Daniel Alkon, President and Chief Scientific Officer, he said "Ours is the first drug to show reversal of cognitive impairment in severe AD patients."
Further, Dr. Alkon told me post-treatment follow-up reveals a continued benefit of Bryostatin treatment over time, in the absence of further dosing. This, I believe, can transform AD medicine, a sorely-needed remedy in light of so many failed trials, many of them at the hands of Big Pharma.
Neurotrope, with scientific vigor, showed positive, significant results from its 'Completer' group of patients, a standard in mITT analysis, comprising all those who crossed the finish line to 13 weeks of treatment. Theirs was a strong data test, not a prerequisite by FDA at Phase II, but forward-thinking in terms of validity.
Dr. Susanne Wilke, CEO, told me the company purposely chose mITT/Completer metrics to show trends in increased cognition, stating they "wanted to be more rigorous." I applaud that stance, given much data today, particularly in AD, can be fraught with problems in data collection. Clinical trial AD patients are not known for their compliance (including dropouts), but mITT/Completer methods smooth away data-gathering issues.
Bryostatin is unique because not only does it reduce the formation of toxic brain pollutants implicated in AD but also revitalizes neuronal function - it acts like a car battery jump-start to grey matter, restoring life and energy to brain components that have died or gone dormant from AD. Early proof from the Phase II study should be viewed with excitement from the AD community.
Pointing to Neurotrope's results, Maria Carrillo, chief science officer of the Alzheimer's Association said even though this Phase II study was small and of short duration, "there was a trend towards improvement in memory, thinking and behavior" in a patient population hardest to treat.
This was precisely Neurotrope's intent, resulting in a brave decision to test patients with advanced disease to restore synaptic health. Dr. Dean Hartley, another research heavyweight at the Association, admits there is nothing else approved that "slows down or prevents the disease." A true medical need exists, and if more detailed data unveiled later this summer is good, the FDA may grant its coveted Breakthrough Designation.
Risks to an investment in Neurotrope are high. Neurotrope has no revenue, but through recent funding has approximately $25 million in cash. Runway is respectable but ongoing trials may make future financing necessary.
There is always the possibility that big trials don't produce equivalent results as smaller ones. Also, investors must better understand new trial methods - newer, in the case of Neurotrope's Phase II, mean superior. Many pharma companies are adopting this type of testing. Case in point is Biogen Inc. (NASDAQ:BIIB), whose recent results in AD trials using mITT/Completer analysis were published in one of science's most respected journals - Nature.
Detailed results from a secondary endpoint, how AD patients perform effectively in daily living, are forthcoming. Bryostatin's future studies will be more highly powered by virtue of a greater number of patients and more well-defined dosing ranges. In this study, improved trends in thinking and functioning were of ultimate importance and have, because of Neurotrope, become a reality.
Disclosure: I am/we are long NTRP.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
https://seekingalpha.com/article/4068036-neurotrope-alzheimers-trial-shows-top-line-efficacy-hardest-treat-patients
AEGIS Capital Update:
Neurotrope, Inc. Rating: Buy NTRP: Bryostatin-1 Trial Data Justifies Additional Studies
Investment Highlights:
Summary Results from the Neurotrope Phase II study show that Alzheimer's disease (AD) patients receiving Bryostatin-1 had an improvement in their cognitive abilities compared with a decline in the placebo patients. The primary endpoint in the study was the Severe Impairment Battery (SIB), a clinical tool testing cognitive function. The data showed statistically significance on the completer analysis, with a trend toward significance in the modified intent to treat (mITT) analysis. As the first study using Bryostain-1 for only 12-weeks of treatment, we see the results as encouraging. In our opinion, these data justify moving the drug into a larger study with a longer treatment period.
Trial Details Byrostain-1 was tested at the 20 microgram and 40 microgram dose levels against placebo. Patients entering the trial had moderate-to-severe Alzheimer's disease with mental status scores (MMSE) ranging from 4 to 15. Patients received an initial dose, followed by a dose every other week for 12 weeks, for a total of 7 doses.
Untreated AD patients are expected show a decline in their SIB score, while preliminary data for Bryostain-1 has shown an improvement in SIB scores. Based on the size of enrollment and expected single directional change for each group, the analysis used a one-tailed t-test with a p-value of 0.1 as a test of significance. Using the one-tailed test increased the statistical power for the small sample size over the more common two-tailed test with a p-value of 0.05.
Data was reported for the modified intent to treat (mITT) analysis as well as a completer analysis using only the patients who completed the full 12-week study. The mITT group had 135 patients while the 20 microgram group had 113 patients. In the 20 microgram group, the completer analysis showed (p<0.07) while the mITT group showed (p<0.134).
Interpretation This was the first study testing Bryostatin-1 with repeated doing for AD. Given the small enrollment and short treatment period, we believe the statistical analysis was appropriate. This may not be what investors were expecting, and we expect some to view the p-values as a failure. However, in a study with a treatment period of six months, the decline in the placebo patients would be expected to widen the difference between the two groups, showing greater treatment effect and statistical significance. In a field where universal failure is expected, Bryostatin-1 showed an improvement in memory. Our opinion, the study met its objective of showing that the drug has sufficient activity to move to a larger study with a longer treatment period.
Valuation Based on these developments, we are reviewing our estimates and price target. In our view, the drug has sufficient activity and data that justifies moving to a larger trial with a longer treatment period. Our valuation of for NTRP is based on estimated earnings for the first year of profitability. We assume first revenues in 2020, and base our estimates on a cost of $1,500 per month. We use a probability adjustment of 75% of revenues to allow for the high risk of failure in clinical trials for Alzheimer’s disease. We further discount FY2021 EPS of $5.96 by 30% per year, with a multiple of 15X for a price target of $31 per share. See Risk Factors on page 2.
2 AEGIS CAPITAL CORP.
Required Disclosures
Price Target
Our price target is $31 per share.
Valuation Methodology
We base our price target on our estimated FY2021 EPS of $5.96, discounted at 30% with a multiple of 15X.
https://aegis.bluematrix.com/sellside/EmailDocViewer?encrypt=02669365-a9ad-4c53-ae4f-0a2815aa16c2&mime=pdf&co=aegis&id=Jeffrey@Littlegem.us&source=mail
"Further analysis of the data from the Phase 2 -202 Study is ongoing, and Neurotrope plans to present more data and analyses from this study at future medical conferences. Once all of the data and analyses have been reviewed, the Company plans to meet with the Food and Drug Administration (FDA) to address the clinical and regulatory path forward for Bryostatin-1. "
A higher SIB score would have made that "path forward" an easier road to travel.