Market Overview

Torchlight Energy Enters Farm-Out Agreement on Its Marcelina Creek Project


Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or the "Company"), today announced that the Company has entered into a farm-out agreement with PetroBridge Energy for the Johnson #4 well in its Marcelina Creek Project in Wilson County, TX. The Johnson #4 well is a vertical well producing ~10 Bop/d from the Buda Formation. According to the agreement Torchlight will farm-out a 25% Working Interest in this wellbore in exchange for the cost of drilling and completion for two lateral legs targeting the Austin Chalk formation. The drilling of the new dual horizontal legs is scheduled to commence in the fourth quarter 2015.

"We are very excited about this agreement with PetroBridge and the continued development of our Marcelina Creek assets," stated Will McAndrew III, COO of Torchlight. "We believe they are the right partner to join us in developing the Austin Chalk potential here which will further unlock value across our asset base. The Johnson #1, also on this lease had a reported initial production of 438 Bop/d from one lateral leg completed in the Austin Chalk and is still producing ~50 Bop/d three years later. The Johnson #1 horizontal section is 2000 feet where the Johnson #4 re-entry will provide for two horizontal legs up to 2400 feet each, providing us with what we expect will be a greatly increased target for completion. This most recent agreement is another example of our ability to extract value from our assets while eliminating Torchlight's Capex requirements."

Posted-In: News Press Releases


Related Articles (TRCH)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial

Bruker Corp Has 'Great Story,' But It's Not Time To Jump In Yet

IGT Announces the Signing of Four-Year Extension Agreement with the Nebraska Lottery