LGX Oil + Gas Inc ROAOF

TORC REPORT ON MONARCH WELLS

[CaptainBigDaddy]

Torc came out today with its report on the monarch wells. They seem very pleased. They have identified a 20 section area in Monarch with 75 drilling locations.....about the same area that LGX says it has.If the LGX wells that are going to be drilled soon (probably by the same drilling rig Torc has been using) match what Torc seems to feel they have,  the recycle ratio is 3.3 or more on the wells....and there should be a lot of recoverable oil here for LGX as well.

Here is the report from Torc on today's earnings::

MONARCH
TORC has identified an area in the heart of the Monarch play which is the focus of the Company’s initial development efforts. TORC’s
2014 capital plans include the drilling of three development wells focused on this initial 20 net section development area. The first well
(1.0 net) in this program was successfully drilled in the second quarter, with the second well (1.0 net) drilled in the third quarter off the
same pad. The third well (1.0 net) is currently drilling. All three wells are scheduled to be completed in the third quarter.
In the fourth quarter of 2013, TORC drilled and completed a delineation well (4‐20), located approximately three miles northwest of
TORC’s 16‐2 discovery well and drilled its first development well (14‐1) directly offsetting the Company’s 16‐2 discovery well. The 14‐1
well was completed and brought on production in the first quarter of 2014. Both the 4‐20 step out well and the 14‐1 development well
were completed with increased frac intervals and increased tonnage relative to earlier completions.
The 4‐20 step out well has now been on production for greater than 150 days with an IP 150 of 362 bbls per day of light oil. Both the IP
90 production rate of 427 bbls per day of light oil and the IP 150 production rate are approximately 20% greater than the production
from the 16‐2 discovery well over the same time periods.
The 14‐1 well has now been on production for greater than 90 days with an IP 90 production rate of 407 bbls of light oil per day which is
16% greater than 16‐2 over the same period and in line with the 4‐20 well. The 14‐1 well continues to demonstrate a strong later time
production profile relative to the 16‐2 and 4‐20 wells with the final 30 day average rate of the IP 90 production 60% greater than 16‐2
and 40% greater than 4‐20.
TORC is very encouraged with the production profiles of its most recent wells and is working towards demonstrating repeatability and
continued optimization in this initial 20 net section development area during 2014. TORC estimates that the initial development focus
area contains more than 75 net potential development locations. In aggregate, TORC has exposure to approximately 150 net sections of
land at Monarch.