Torchlight Energy Resources Inc. (TRCH:NASDAQ) completed the drilling stage of the Flying B Ranch #3H well. The company announced on July 18 that the "horizontal leg at Total Depth was ~8,300 feet in the Wolfcamp A Bench. Preliminary indications from mud log and gamma ray MWD readings indicated a consistent exposure to the planned pay zone over the entire length of the lateral."
The company also stated that it plans to "employ a 25 stage frac over a 5,000-foot section of the lateral wellbore where casing was successfully set and cemented in place. Frac design will be consistent with the latest technology being utilized by others in the Midland Basin."
Torchlight's project geologist, Rich Masterson, said, "We have managed to stay in zone and the logs indicate that we should be able to frac this well in a manner consistent with other Midland Basin wells targeting the Wolfcamp A interval. We encountered good shows of oil in the samples and good gas on the mud log chromatograph."
Dallas Salazar, CEO of ATLAS Consulting, noted that "Torchlight's successful drilling of its first Permian Well derisks its asset base in the Hazel Project, a historic derisking event for the E&P, and does well to help prove out the Permian-tethered investment thesis."
"Given that the Flying B Ranch #3H is a 5,000-foot lateral, the Flying B Ranch #3H will be large enough to provide the data necessary for Torchlight to determine a baseline for "barrels per 1000 feet of lateral," an incredibly important data set to be able to establish," Salazar explained. "This data set is necessary to allow Torchlight to create comparisons to other Midland Basin completions [i.e., Wells] and to other Wells potentially competing for capital. If the Flying B Ranch #3H data are productive, really, if the well produces how we expect it to produce, Torchlight's Permian acreage will compete for capital on a global stage and will be competitive from a return standpoint on a global stage. The Flying B Ranch #3H isn't just a well, it's an opportunity for Torchlight to complete the first phase of its turnaround."
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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) Dallas Salazar: I, or members of my family or household or company (ATLAS Consulting), own greater than 1% but less than 5% of the outstanding shares of the following companies mentioned in this interview: Torchlight Energy Resources Inc. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None.
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