Marks First Project as Operator and Expands Partnership With Husky Ventures
PLANO, TX -- (Marketwired) -- 06/25/14 -- Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight Energy" or "the Company"), a rapidly growing mid-continent oil and gas company, today issued an update on the progress of its joint project with Husky Ventures in Smokey Hills, Kansas. Torchlight Energy, the operator of the project, successfully spud the first well in this joint project. The well is slated to be drilled to a target depth of 3,500 feet. The Company expects to drill an initial 10 well test project and upon successful results, an additional 15 to 20 wells in the 18,000 acre area during the third and fourth quarter of 2014.
"We are very excited to get underway on our first well in the Smokey Hills project," stated Will McAndrew, Torchlight's COO. "This marks another milestone for Torchlight as we step into the role of operator for the first time as a Company and continue in our partnership with Husky. This project, targeting the Maquoketa Dolomite Formation, should provide Torchlight with additional highly prospective targets and expand our drilling inventory significantly. These wells are straight vertical wells and fit nicely into our model of participating in infield, developmental drilling where completion and production data exists. In this case we are drawing from over 800 successful wells that have produced over 23 million barrels of oil to date."
Torchlight Energy acquired a 17.8% working interest (now exceeding 75%) in the project in South Central Kansas in December 2013. Reports at the time of acquisition indicated approximately 60,000 barrels of proven recoverable reserves per well with 7,500 barrels needed to achieve payout. Original volumetric estimates are 217 million BOE in place in the 18,000 acres under lease in the Smokey Hills project. Torchlight expects the Smokey Hills project wells to provide rapid paybacks with 30 to 50 barrel projected initial production rates.
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 currently holds interests in Texas, Kansas and Oklahoma where their targets are established plays such as the Eagle Ford Shale, Mississippi Limestone and Hunton Limestone trends. 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 may 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 may 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.
Source: Torchlight Energy Resources, Inc.