Torchlight Energy Resources Inc. (TRCH:NASDAQ) received the final petrophysical report on its Orogrande Basin project, it announced in a news release.
The document, prepared by Stimulation Petrophysics Consulting in Denver, gives a range of potential recoverable reserves from the unconventional zones on Torchlight's 134,000 acres. These figures are based on standard recovery factors.
The best case scenario is 15% recovery, equating to 4,975 million barrels of oil equivalent (4,975 MMboe). The mean case is 11% recovery, for 3,678 MMboe, "a significant revelation," said CEO John Brda in the release. The low case is 7% recovery, or 2,321 MMboe.
"Torchlight's board of directors and management feel that the third-party evaluation and resulting estimate of 3.7 billion barrels of potential recoverable oil at an 11% [recovery factor] is a significant revelation. Although the cost to acquire the voluminous amount of science needed for this third party evaluation was quite significant, we are obviously very pleased with the end results," Brda stated.
"It is unique to find a new basin predominately owned by one exploration company and with agreeable lease terms such as those we have with University Lands. As we enter and continue discussions with suitors, Torchlight will better define the current market value for one of the largest virgin onshore oil and gas basin discoveries in the United States in recent history. We look forward to reporting the impact of such value to our shareholder's ownership," Brda added.
Torchlight "intends to provide subsequent updates regarding further analysis and additional data relating to its Orogrande Project marketing process in the near future."
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