PLANO, Texas, Aug. 16, 2018 (GLOBE NEWSWIRE) -- Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company"), today provided an operational progress update on its Orogrande Basin Project.

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Torchlight Energy Closes on $6,000,000 Financing and Provides Operational Update

2018-10-18 08:30 ET - News Release

Company To Drill Three New Wells in its Orogrande Basin Project

PLANO, Texas, Oct. 18, 2018 (GLOBE NEWSWIRE) -- Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company") today announced that the Company has closed on debt financing totaling $6,000,000 and will be drilling three new wells on its Orogrande Basin Project in the coming months. Torchlight provided detailed operational updates for each of the Company’s three asset areas.

Orogrande Basin Project:
Torchlight Energy has secured financing to expand its drilling efforts in its Orogrande Basin Project. The University Founders A25 #1H well has confirmed the existence of a significant over-pressured hydrocarbon system in the Pennsylvanian Siltstone and the concept of geologist Rich Masterson, who is also credited with the discovery of the Wolfbone Play in the Delaware Basin. The Company will drill three wells beginning in mid-October 2018 to test over fifteen additional potential pay zones encountered while developing results in the Pennsylvanian Siltstone target. The first two wells will satisfy Torchlight’s obligations under the Drilling and Development agreement with University Lands.

In August, the Company announced an effort to incorporate a newly designed gas lift system to assist with the moving of fluids in the horizontal section of the wellbore. After significant testing there was no measured increased in fluid production and the gas lift system was removed. It has been replaced by a traditional tubing and packer system in the wellbore and Torchlight has individually tested the zones down hole by systematically isolating them in front of and behind the packer. This allowed incremental testing of each zone further out the wellbore to the toe and helped identify that results are coming from communication between all fraced zones combined. A highest hourly rate of 4.1 MMCFPD and daily of 2.2 MMCFPD has been measured with sustained production of ~1.5 MMCFPD during fluid removal at 6 barrels per hour on average. Produced oil has been encountered but further frac fluid removal is necessary to report an oil cut in measured quantities. The shut-in pressure reading was 1675 psi. Currently, the well is producing with flowing tubing pressure at 450 to 500 psi. Torchlight believes that the periodic oil shows during testing indicate significant oil in the system. The Company will continue extensive well tests including pressure transient work to achieve production and confirm the 600-foot hydrocarbon interval contains oil as well as gas. This thesis is reinforced by multiple technical factors including logs, rotary core analysis and oil recovery. 

The next Orogrande well to be drilled will be the University Rich A11 #2. The well will be a twin to Torchlight’s Rich A11 #1 well drilled in 2015. Torchlight experienced difficulties during the drilling of the Rich A11 #1 and it was ultimately determined that the cement job on the casing had failed. As a result of data gathered from that process, Rich Masterson has identified five distinct Wolfcamp unconventional targets ranging in thickness from 86 feet to 160 feet. The Company will drill, log, core, and test this geologic concept to produce evidence that these zones spread out over a significant portion of its acreage block.

During the 1920s, an El Paso company called Hueco Basin Oil Company drilled a well near the center of Torchlight’s current acreage block. Although there is very little data on this well from ~100 years ago, a driller's log indicates the presence of oil at a 2500-foot depth. 80 years later, Trail Mountain drilled a well slightly over 1 mile to the northeast of the Hueco Basin well. Using logs from that well, Rich Masterson has identified two conventional Wolfcamp potential pay zones at less than 3,000 feet that will be tested with this new well.

Resulting from well control data and identification of an anomalous dip encountered in the 1,000-foot lateral of University Founders A25 #1H well, Mr. Masterson has identified the possibility of an extremely large anticline on the Torchlight acreage. This feature has the potential of a four-way closure larger than 500 feet. Once confirmed, there exists eight or more pay zones below the Pennsylvanian Siltstone that could trap hydrocarbons. The areal extent of this feature cannot be determined utilizing current data, therefore 3-D seismic will be needed to further delineate the size of this structure.

Hazel Project:
Within the last few months Torchlight shut in the Flying B #3H well to remove the submersible pump and address sanding and inefficient operational conditions cause by gas interference. The Company replaced the submersible pump with a rod pump system from stock resulting in decreased production due to pumping unit fluid capacity limitations. Once this was determined a larger submersible pump was installed resulting in a production increase to ~100 BOPD and ~50 MCF of gas. Torchlight is continuing its marketing efforts with increased interest in the project and will take measures to protect the leases during the process.

Winkler Project:
MECO IV, Torchlight’s operating partner on the UL 21 War-Wink 47 2H well, recently stimulated the well using 9.2 million pounds of proppant in 358,000 barrels of fluid over 30 stages. Subsequently, the post completion plugs were drilled out, the well was turned over to flowback on the 27^th of September. Since that time, MECO has been vigilant choking back the well during the initial production period. MECO started with a small choke setting and are now at a 14/64^th inch choke with 2000 pounds of pressure and over 300 barrels of oil per day with total fluids over 1900 barrels. Gas is currently at 260 MCFPD and all streams are hooked up to sales. The well is trending up nicely on a daily basis and should reach its peak in the next month or so. It seems to be performing thus far, on par with excellent 5000’ Wolfcamp A wells in the immediate area.

“This is an exciting time for Torchlight as we continue to see results from the field and interest in our efforts from larger peers”, stated John Brda, CEO of Torchlight Energy. “We believe we are entering a transition from proving up our plays to becoming a target for larger independent oil and gas companies that treat field development like a manufacturing process. Our current efforts are preparing for this end and during the first part 2019 Torchlight will be increasing our efforts to identify appropriate suitors. Monetizing the value our past efforts have created in the current asset base, while maintaining exposure to additional upside from future development in the Orogrande Project, remains management’s primary objective.”

About Torchlight Energy
Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.

Forward Looking Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including risks associated with the Company's ability to obtain additional capital in the future to fund planned expansion, the demand for oil and natural gas, general economic factors, competition in the industry and other factors that could cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Investor Relations Contact

Derek Gradwell
MZ Group
SVP Natural Resources
Phone: 512-270-6990
Email: dgradwell@mzgroup.us
Web: www.mzgroup.us

Dual Lift Gas System:  The Company’s Operator on the Orogrande Project, Maverick Operating, has successfully installed the gas lift system into the University Founders A25 1H wellbore.  The system is designed to assist in the movement of fluids out of the lateral portion of the wellbore, which has been hindered to date due to the high gas content of sections in the heel of the well.   This well will be tested over the next sixty days to determine what level of fluid recovery potential exists.

Subsequent Wells:  The Company and its partner, Wolfbone Investments, plan to drill two additional wells this year and three in 2019.  With this plan in mind, the company has identified two vertical well locations that it plans on drilling to test shallower vertical targets.  These targets will fulfill drilling commitments required under agreement with University Lands and if proven up, could add substantial value to the Project.  Several shallow targets that show potential oil and gas of sufficient quality to be tested exists on well logs and core samples from previous wells Torchlight drilled in addition to the wells drilled by Trail Mountain.  Torchlight has slated initial work on the next wells to begin in October.

“We are gaining volumes of data from the current work being done by Maverick and interpretation provided by Rich Masterson,” stated John Brda, CEO of Torchlight.  “We are very excited to be a part of a field discovery that we expect to be transformational for the Company.  We will continue to learn from the A25 flow back and from drilling and completing the shallower zones later this year.  We know a petroleum system is in place as evidenced by the gas production to date and small amounts of fluid recovered. We will continue in our commitment to developing the science in order to prove up oil production, additional pay zones and ultimate size of this asset.”

“Now that we have the A25 discovery well continuing to clean up, our expectation for additional zones being productive in the Orogrande are very high,” stated Rich Masterson, generating geologist of the Orogrande Basin Project.  “Generally, when you have a petroleum system in place and a discovery like this, you will find multiple zones of interest that need to be tested.  Continuing to develop the science and learn from every well bore is imperative and a focus of our team.”

About Torchlight Energy

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.

Forward Looking Statement

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including risks associated with the Company's ability to obtain additional capital in the future to fund planned expansion, the demand for oil and natural gas, general economic factors, competition in the industry and other factors that could cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Orogrande Basin to Be Designated as A New Field Discovery

PLANO, Texas, July 26, 2018 (GLOBE NEWSWIRE) -- Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or the "Company"), today announced that the Company’s Orogrande Project has begun to produce significant hydrocarbons from its University Founders A25 #1 well.  The company has successfully drilled a 1,000-foot, proof-of-concept lateral and completed with a six-stage fracture stimulation in the Pennsylvania formation.  The well produced a ~1.8MMCFPD peak daily production rate based on hourly gas measurements.  The well has produced mostly gas to date with limited quantities of 41 gravity oil from this complex reservoir of carbonates and silty shales.  Sustained gas production rates have ranged from 1.0 to 1.4 MMCFPD depending on choke size.  This is confirmation of a petroleum system in the Orogrande Basin with source rock necessary to produce hydrocarbons. The Company believes it is still very early on in the well clean-up process and expects increases of oil from this lateral as indicated by logs and oil-saturated cores.  Rotary cores show that the Ro (a measurement of thermal maturity) is well within the oil window and additionally indicates the likelihood of increased oil volumes.  The upper most completion stages in the heel of the well show to be predominately gas by the core analysis, whereas the lower 4 stages show significant oil potential. Management believes the gas from the heal stages are potentially over-riding liquid removal from the lower four stages and creating a liquid obstruction issue in the lateral portion of the well.  Currently, the well is shut in awaiting delivery and installation of specialized gas lift equipment that should remedy the liquids obstruction by unloading the wellbore and increasing oil production recovery.

“This is a very exciting day for Torchlight and its shareholders,” stated John Brda, CEO of Torchlight.  “The confirmation of production in the Orogrande Basin is major milestone for the company.  To produce at a peak rate of ~1.8 MMCFPD out of a 1,000-foot lateral, with evidence of high quality oil behind it, confirms our thesis that the Orogrande can be a long lateral production play supporting 10,000-foot lateral wells.  Torchlight is now the first company to effectively produce hydrocarbons in the Orogrande Basin and is attributed with this New Field Discovery.  We will continue to test the University Founders A25 #1 well and are preparing to drill the next two Project wells which are required this year under our Drilling & Development Agreement with University Lands.  Additionally, we have begun discussions with industry majors who would be appropriate development partners or acquisition suitors for the Orogrande Project.  This New Field Discovery provides Torchlight with tremendous flexibility in how we move forward.  The Company may continue to delineate the Orogrande Project itself, negotiate a development agreement with an industry partner or sell outright. In any event we remain committed to value creation for Torchlight and its Shareholders.”

“While experiencing multiple obstacles, Torchlight and its partners did an excellent job of sticking with the program we originally outlined for this play to prove our thesis,” commented Rich Masterson, geological expert and Torchlight’s originating consultant on the Project.  “We have now validated a brand-new shale play in West Texas with potential across the basin to deliver large volumes of petroleum reserves from the Pennsylvania formation alone.  Going forward we plan to validate deeper and shallower conventional zones, delineate the acreage to the south and verify pay zone properties including thickness, depth and quality of rock that appear in those sections.”

To view videos of the flare and oil sample from the A25, please visit the IR section of the Company’s website linked here: https://www.torchlightenergy.com/current-projects/orogrande-basin

Hazel Project Update:

In May, Torchlight took steps to maintain leasehold requirements by drilling a 2500 foot vertical well and extending certain leases for six months while continuing the sale process.

Winkler Project Update:

The MECO IV, LLC operated, UL 21 War-Wink 47 #2H well has been drilled to a total measured depth of 16,890’ (11,439’TVD).  5 ½ inch production casing was run from 10,880 feet to 16,868 feet measured depth and successfully cemented in place.  Completion operations are expected to commence in late August 2018.  Torchlight is being carried for 12.5% Working Interest in this first project well.

About Torchlight Energy

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.

Forward Looking Statement

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including risks associated with the Company's ability to obtain additional capital in the future to fund planned expansion, the demand for oil and natural gas, general economic factors, competition in the industry and other factors that could cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.