![]() ![]() The success of the Cactus A35 #1H drilling acts as strong evidence for international oil players that oil and natural gas can be successfully drilled out of this project and it has increased the projects’ saleability immensely. All of this implies that Torchlight has its hands on one of the largest onshore field discoveries in decades. Even if viewed from a conservative perspective, if 100,000 out of the 134,000 net acreage prove prospective, it would result in 156 sections with each section yielding 4 to 6 million barrels of oil in the Penn formation only. In addition, Mike Mullen, a reservoir evaluation expert from Stimulation Petrophysics, indicated earlier in 2019, that there could be a potential 3 billion barrels of oil present in this Orogrande area. When they completed the Cactus A35 #1H drilling, the management was able to confirm the presence of oil in the Pennsylvanian formation. Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. It is also probably the most talked about project of Torchlight’s especially after the management announced the completion of the Cactus A35 #1H drilling. Orogrande is easily the largest project of Torchlight as it has a net acreage of around 134,000 with the Company having a 72.5% working interest in the project. The Orogrande Basin Project & Its Big Breakthrough These are the Orogrande project in Hudspeth County, Texas, the Hazel project in Sterling, Tom Green, and Irion Counties, Texas, the Winkler project in Winkler County, Texas, and Hunton wells in partnership with Husky Ventures in central Oklahoma. It currently has interests in four oil and gas projects. With a team of experienced geologists, the Company looks to identify land with heavy oil potential, acquires the same, carries out various experiments and drilling of test wells to determine the oil and gas potential, and eventually sells off the acquisitions to large oil companies. Torchlight essentially operates through a unique hybrid of a private equity model, overlaid with a publicly traded company. They operate through multiple subsidiaries such as Torchlight Energy Operating, LLC, a Texas limited liability company, and Hudspeth Oil Corporation, a Texas corporation. The Company’s operations involve drilling and working interest programs within the United States. Torchlight & Its Business Modelįounded in 2010, Torchlight Energy is largely involved in the acquisition, exploration, and development of oil and natural gas properties in the United States. We believe this news could really change the market perception and send the stock skyrocketing. The Company has recently been in the news for striking oil in its largest project in Orogrande and the potential amount of the oil extracted could be as much as 3.678 billion barrels. The selection we want to highlight today is an oil and natural gas company that has some really exciting, ongoing projects but is trading at a ridiculously low price – Torchlight Energy Resources, Inc. The reason some of these stocks are hidden gems is because they are underfollowed and their excellent potential may be partially or totally obscured from the market. Torchlight said last week it would raise $100 million by selling its shares, following in the footsteps of other beneficiaries of meme stock rallies such as GameStop Corp and AMC Entertainment Holdings.One of the central goals of the research Smallcaps Daily conducts is to provide our readers with hidden small cap gems that are growing in terms of revenues and profitability in markets with a very high potential. Torchlight shares, which have mostly been on the rise since June 11, pared some gains but were still up 30% at $8.13 at 11:08 am E.T. ![]() The stock also had a short interest of 24.7% of freefloat, latest data from analytics company Ortex showed.Īfter losing $71 million last week, short-sellers had lost another $138 million on Monday after Torchlight hit a record high of $10.88 per share, according to Ortex. ĭata from brokerage Fidelity showed Torchlight was the second most traded stock on its platform on Friday, with buy orders outnumbering sell 1.6-to-1. Message volumes on Stocktwits related to Torchlight rose 14%, with more than 98% reflecting positive sentiment toward the oil and gas explorer’s shares. ![]()
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