In an Aug. 16 research note, analyst John White with ROTH Capital Partners reported that Torchlight Energy Resources Inc. (TRCH:NASDAQ) gave a "positive" operational update on its Orogrande asset, whose large land package it is developing. "We are encouraged that Torchlight sees further potential and plans additional wells this year and into 2019," he wrote.
Torchlight has been tackling the problem of gas blocking the flow of oil out of its University Founders A25 1H well. To resolve it, the company had Maverick, the project operator, install a dual-lift gas system into the wellbore, which was done successfully. The system should help move fluids out of the wellbore's lateral part. "This will be tested over the next 60 days to determine what level of fluid recovery potential exists," noted White.
In other news, in accordance with its intent to drill two more wells in 2018 and three wells in 2019, Torchlight identified two locations for drilling, to test shallower vertical targets, White relayed. "These targets will fulfill drilling commitments required under agreement with University Lands and if proven up, could add substantial value to the project."
In the near term, initial work on the next Orogrande wells is scheduled to commence in October.
ROTH has a Buy rating and a $1.75 per share price target on Torchlight, whose stock is currently trading at around $1.12 per share.[NLINSERT]
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from ROTH Capital Partners, Torchlight Energy Resources Inc., Flash Note, August 16, 2018
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Within the last twelve months, ROTH has received compensation for investment banking services from Torchlight Energy Resources, Inc.
ROTH makes a market in shares of Torchlight Energy Resources, Inc. and as such, buys and sells from customers on a principal basis.
A Research Analyst and/or a member of the Analyst's household own(s) debt or equity securities of Torchlight Energy Resources, Inc. stock.
Shares of Torchlight Energy Resources, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
Within the last twelve months, ROTH has managed or co-managed a public offering for Torchlight Energy Resources, Inc.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.