HOUSTON, May 16, 2013 /PRNewswire/ -- Torchlight Energy Resources, Inc. (OTCQB: TRCH) announced today they have signed a contract providing them a 15% working interest in the emerging horizontal Hunton play.
The Hunton formation is prevalent throughout central Oklahoma and has produced 114 million barrels vertically over the last several decades. This contract provides Torchlight with a 15% working interest in an AMI covering a total of 3,200 acres and is operated by Husky Ventures. Husky has already drilled 18 successful horizontal Hunton wells in the last three years. This agreement allows Torchlight to participate in 20+ new wells already identified and planned for the acreage. The horizontal Hunton wells as a whole have been getting better over time as Husky perfects its drilling and completion techniques. Recently, Gastar Exploration has reported horizontal Hunton wells in the region making 500 to 1000 BOED on a peak rate, as well as EUR's in the 450,000 BOE range.
Management Comments
Mr. John Brda, President of Torchlight said, "This is a great opportunity for Torchlight and we could not be more pleased. The chance to participate with the industry leader in horizontal Hunton drilling Husky Ventures, in this prolific oil producing basin, gives us the opportunity to significantly grow the Company over the next couple of years as we develop the acreage contained in the AMI. Husky Ventures has proven to be an aggressive and successful operator having already drilled and completed 18 wells."
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 Statement
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