Torchlight Energy Resources announces plan to market Midland Basin Assets
Torchlight Energy Resources announced that the Board of Directors has engaged ROTH Capital Partners to conduct the process of marketing the company's Midland Basin Assets also known as the Hazel Project. Torchlight owns an 80% WI in 12,000 mostly contiguous gross acres in the play and to date has drilled two science wells, one horizontal producer in the Wolfcamp A, and one cased hole well, ready for horizontal drilling and completion. The results from this drilling activity have confirmed the Lower Wolfcamp A and Upper B as well as the Upper Wolfcamp A and Dean. Further opportunity exists for a third bench in the Leonard formation. The acreage block sets up nicely for up to 10,000 foot long lateral drilling."We have begun to have discussions with a few groups regarding the potential sale of the Hazel Project," stated John Brda, CEO of Torchlight. "However, we believe that it is in the best interest of the shareholders to market our acreage to a broader audience to maximize results from such a sale. While both the management and the board are bullish about our findings in this project, recent geologic and operational developments in the Orogrande have given us sufficient information to rethink our focus and capital budget. The shear scope of the Orogrande, coupled with results to date demands our focus on the continued development of that play. The liquidity provided by selling the Hazel project for redeployment into the Orogrande makes good fiscal sense for the Company. The capital budget in Orogrande is going to increase and rather than trying to support two projects that would either require more debt or equity to fund, Torchlight feels that the best way to move forward is to free up value from the Hazel and devote it to the Orogrande. The multiplier effect of capital devoted to a play where we have 90,000 net acres as opposed to a play where we have 9,600 net acres could prove to be extremely valuable and ultimately create maximum shareholder value. Our mission on the Hazel Project was to prove the overall concept of the Wolfcamp horizontal development, increase the value of the acreage and exit at a higher value. We have achieved all goals and are now ready to focus all efforts and capital into the Orogrande."