PLANO, TX / ACCESSWIRE / April 6, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH) ("Torchlight" or the "Company"), today provided an operational update on its Orogrande Basin Project and announced compliance with Texas Governor Greg Abbott's Stay-At-Home Order.
In compliance with Governor Abbott's Stay-At-Home Order until at least April 30th, Torchlight has suspended current field operations on the Orogrande Project. The company intends to be back to work on two very important projects during the month of May, or as soon as the Governor lifts his Stay-At-Home Order.
"The safety of our operations team, as well as the field personnel of the service companies, is our first priority," stated John Brda, CEO of Torchlight Energy.
The company was very close to completing the installation of a gas lift system on its recently announced oil producing Cactus #1H well completed in the Pennsylvania Silt (WolfPenn) formation. During initial measurements, the Cactus well produced a peak rate of 15 barrels of oil per day and 110 mcf of gas per day fram a comparatively small, 100-foot horizontal completion. This equates to a potential of 1500 barrels of oil per day and 11 million cubic feet of gas per day from a typical 10,000-foot lateral completion. The installation of a gas lift system should significantly reduce the hydrostatic pressure on the formation's dual porosity system, thereby increasing the hydrocarbon production on the Cactus well.
Additionally, Torchlight received some very positive early results from the conventional Atoka Formation in the Founders A25 #2 well. With a very small acid job, the Founders A25 #2 well recovered both oil and gas during swab testing. Importantly, the well did not make any formation water during the swab test. Once field operations begin again, the company will initiate a fracture treatment on this well. Although oil and gas have been produced out of the Penn Silt unconventional pay zone in two wells, the Founders A25 #2 Atoka production is the first well on the Torchlight acreage block to recover hydrocarbons out of a conventional zone. The 3rd party science team, led by Mike Zebrowki, has identified over 20,000 acres of potential conventional structures on Torchlight acreage, using seismic, gravity and magnetics data.
"Torchlight's focus has been on unlocking the unconventional resources in our Orogrande Basin acreage," stated Greg McCabe, Chairman of the Torchlight's Board of Directors. "Our recent oil production from the Cactus well out of the unconventional Penn Silt is a true game changer. Now that we have recovered hydrocarbons from the conventional Atoka formation, our upside potential has increased dramatically."
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.
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SOURCE: Torchlight Energy Resources, Inc.
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