Torchlight Energy Announces Agreement on Acreage in Finney County, KS
Program Will Target the Mississippian Lime Trend
HOUSTON, Jan. 3, 2013
HOUSTON, Jan. 3, 2013 /PRNewswire/ --Torchlight Energy Resources, Inc.
(OTCBB:TRCH), an independent oil and gas company headquartered in Houston
Texas is pleased to announce that the company has signed an agreement with
Redhawk Resources on its 15,000 gross acres in Finney County, Kansas.
The transaction is the result of an Option Agreement signed between Redhawk
and Terrace US Holdings, LLC (a wholly owned subsidiary of Terrace Energy
Corp.). When closed, the transaction will result in Torchlight receiving a 9%
WI in the acreage and a small overriding royalty interest (ORRI). Torchlight
will be carried through the tanks on a minimum of three horizontal
Mississippian obligation wells, with the possibility of several more carried
wells upon results of the test program. The acreage lies in the immediate
vicinity of acreage leased and in the process of being developed by some
well-known oil and gas companies including Sandridge Energy and Encana
Corporation. The transaction is expected to close in late Q1 or early Q2 2013
and initial development of the field occurring shortly thereafter sometime in
late Q2 or early Q3 2013.
The Mississippi Lime trend is a well-known conventional tight limestone
formation that is currently producing from over 15,000 vertical wells on over
approximately 17 million acres. With the emergence of horizontal drilling
technology, the area has undergone a revival and is the focus of significant
leasing activity by many oil and gas companies. Two successful Mississippian
Lime wells were recently announced on neighboring acreage in Western Finney
Torchlight's President, John Brda said, "This is an exciting opportunity for
Torchlight to get involved in one of the most prolific oil plays going right
now. The working interest should provide Torchlight with cash flow sometime
in early Q3 of 2013. In addition, because our interest is carried for at
least three wells and possibly as many as six or seven wells, by the time we
are responsible for our own working interest contribution, we will be doing so
out of cash flow. By size of acreage and opportunity for Torchlight, this is
the single largest deal in our short history and when fully developed,
provides Torchlight with significant upside and cash flow."
You can view more information on the company's website at
ABOUT TORCHLIGHT ENERGY
Torchlight Energy Resources, Inc, headquartered in Houston, TX, is positioned
as an oil and gas company with a primary focus on oil. Torchlight will focus
on highly probable and profitable drilling and working interest programs that
have a short payback period, high IRR and proven reserves and are located in
domestic, onshore fields.
With a proven management team and tremendous access to pre-market deal flow,
the Company is positioned for tremendous near-term growth for our
shareholders. Torchlight will identify drilling opportunities with a high
probability of success, purchase working interest ownership in proven field
development programs, spread the risk associated with drilling programs by
entering into a variety of programs in different fields with differing
economics but all with reputable operators and hedging production when
possible for predictable cash flows.
FORWARD LOOKING STATEMENTS
The information contained in this news release, other than historical
information, consists of 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 our ability to obtain
additional capital in the future to fund our planned expansion, the demand for
oil and natural gas, general economic factors, competition in general 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.
Contact: Brad Holmes, EnergyIR, +1-713-654-4009, B_holmes@att.net; John Brda,
President, Torchlight Energy Resources, Inc., +1-281-724-3261
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