Opinion

Oil & Gas Company Delivers 'Encouraging' Operations Update


A ROTH Capital Partners report discussed where this energy explorer/developer stands with its primary efforts.

Torchlight well
Torchlight Drill Pad

In an Oct. 18 research note, John White, a ROTH Capital Partners analyst, reported that Torchlight Energy Resources Inc. (TRCH:NASDAQ) relayed an "encouraging operations update," with the latest developments regarding finances, operations and exploration, "which, on balance, we view as positive."

White addressed the updates one by one. The financial news was that Torchlight refinanced some existing debt, which generated $6 million in proceeds, White noted. It used half of the amount to pay back a promissory note and will spend the remainder on drilling and lease acquisitions. The transaction was a private placement of Torchlight's 16% Series C unsecured convertible promissory notes, with interest and principal due on April 17, 2020. Notes may be converted into a 6% interest in specific oil and gas leases at the company's Orogrande project.

As for exploration, Torchlight continues work in this regard. Starting in mid-October with the University Rich A11 #2, it will drill three wells in the Orogrande Basin to test more than 15 previously determined potential pay zones.

Also at Orogrande, Torchlight plans to conduct three-dimensional seismic imaging of a "large anticline structure" identified on its acreage there, indicated White.

In the Wolfcamp Formation, the company identified five distinct, unconventional targets whose thicknesses range from 86 to 160 feet. "This is another positive step forward in the effort," White wrote.

As for the latest in operations, Torchlight replaced the recently installed gas lift system at the Founders A25 #1H well with a traditional tubing and packer system, after the former failed to increase fluid production. "Analysis continues to indicate the presence of crude oil; however, the over-pressured natural gas is preventing the oil from reaching the wellbore," White explained. Management believes oil will flow once gas production releases pressure on the oil.

At its Winkler project, the recently fracked UL 21 War-Wink 47 2H well is producing more than 300 barrels of oil per day.

ROTH has a Buy rating and a $1.75 per share price 12-month target on Torchlight, whose stock is trading at about $0.88 per share.


Visit source site

https://streetwisereports.com/article/2018/10/20/o...

Operations UpdateROTH Capital PartnersTorchlight Energy ResourcesNASDAQ CoepnhagenUnited StatesUSA

More items from oilvoice


Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 27 days agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 27 days agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 29 days agoPress > CNOOCChina National Offshore Oil CorporationChevron +11

Total Announces the Distribution of its Second 2018 Interim Dividend

The Board of Directors met on December 12, 2018 and declared  the distribution of a second interim dividend for the 2018 fiscal year of €0.64 per share, in accordance with the Board's decision of July 25, 2018, an amount equal to the first 2018 interim dividend and an increase of 3.2% compared to t ...

OilVoice Press - OilVoice


Posted 30 days agoPress > TotalDividend

Methyl Tertiary Butyl Ether Capacity Will Grow at a CAGR of 16.8% in India Over Next Four Years, says GlobalData

India's Methyl Tertiary Butyl Ether (MTBE) plant capacity is forecasted to grow at a compound annual growth rate (CAGR) of 16.8% from 0.211 million tons per annum (mtpa) in 2017 to 0.460 mtpa in 2022, according to GlobalData , a leading data and analytics company. The company's report: ‘ Met ...

OilVoice Press - OilVoice


Posted 30 days agoOpinion > GlobalDataIndiaMTBE
All posts from oilvoice