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."
