Torchlight Energy Resources, Inc. Up 15% on Bullish Energy Sector Sentiment

Torchlight Energy Resources, Inc. Up 15% on Bullish Energy Sector Sentiment

By: Dylan Sikes - AllPennyStocks.com News

Thursday, November 17, 2016

Crude Oil is up 1.54% today, while the S&P500 climbs up by a modest 0.19%. This all as the Saudi Arabian oil minister said that OPEC may reach a deal to curb output. Oil futures showed gains on Thursday after those words were echoed. Oil prices globally have been seeing declines as a result of news of rising global crude oil supplies. Now, OPEC is trying to get a deal to cut production to around 33 million barrels a day from highs of 33.83 million in October. However, some OPEC countries have asked to opt out of the deal. Iraq, for example, says it needs to produce at will to fund its war against ISIS in the north. With Trump’s win, some quarters hope for a more proactive approach towards American involvement in the Middle East, while others think that involvement will be cut down. Despite this confusion, and the at least 3 or 4 wars running simultaneously in that area of the world, it is interesting to see how OPEC will reach a cut back agreement. If it does, oil prices will hold at these levels in the most conservative view.


Torchlight Energy (NASDAQ:TRCH) is a small US company engaged in the exploration and development of oil and natural gas prospects in the USA. As of last year, the company held interests in 4 oil and gas projects, including the Marcelina Creek Field Development in Wilson County, Texas; the Ring Energy Joint Venture in Southwest Kansas; the Hunton play in Central Oklahoma; and the Orogrande project in Hudspeth County, Texas. It also had interest in a commercial salt water disposal facility in Seminole, Oklahoma. The company has a market cap of around $60 Million.

Today, the company’s stock saw a spike of 25% after its announcement from last week that it has entered a letter of intent to increase ownership in the Midland Basin asset. The increase will be of 74% across all 12,000 acres of the property, resulting in 8800 net acres. The company has been gaining steadily since last week.

"We are very excited to increase our Working Interest in the Hazel Prospect," stated John Brda, CEO of Torchlight Energy. "After significantly de-risking the play recently by drilling our first test well, this transaction is timely and accretive. Our Chairman, Greg McCabe has developed tremendous confidence in our Company as reflected in this and our previous transactions with him. He has been a great source of expertise and we appreciate the opportunities he has provided us. Since 2013, acreage prices in the Eastern Midland Basin have averaged, adjusted for production, approximately $12,000 an acre. This transaction, like the others we have executed with Greg (including Orogrande and the initial Hazel acquisition), provides increased access for Torchlight into one of the most exciting plays in the Country. We expect the transaction to be finalized in the next few weeks."

Shares of TRCH have been all across the board in 2016, but after all is said and done, are up on the year and are at about the mid-way point of their 52-week range at last check.

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