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TRCH, Torchlight Energy Oil and Gas Investor Article One on One

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Derek Gradwell
Derek Gradwell

This document profiles Torchlight Energy Resources Inc., an oil and gas company that focuses on liquids-rich projects in established fields. The company's strategy is to partner with experienced operators in areas with known geology and repeatable production success. In 2014, Torchlight plans to participate in around 100 wells across its projects in Texas, Oklahoma and Kansas, representing a ten-fold increase from 2013. The CEO emphasizes Torchlight's significant future drilling potential across its growing acreage positions in proven plays.

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Energy Companies To Watch A SPECIAL REPORT FROM THE PUBLISHER OFSPRING 2014 ONEONONE
Oil and Gas Investor | OneOnOne: Energy Companies to Watch | Spring 2014 Describe the strategy that drives the company, and how you will implement it this year? We focus on liquids production and really con- sider our efforts to be exploitation rather than ex- ploration projects. We only participate in areas with known geology and production.We seek out partnerships with established creditable compa- nies that are almost always relationship based and provide entry into developmental projects where success is highly repeatable. A good example of how we will implement our strategy is that we recently entered into two part- nerships that provide for explosive growth with proven and experienced operators, Husky Ventures in Oklahoma and Ring Energy in Kansas.With both partnerships we have large acreage positions and are actively growing those positions. How have high oil prices and low gas prices affected your business? We focus on liquids-rich projects; however, if the economics were good on a natural gas project, we would consider that as well. Will you be expanding into any new basins or plays? Why or why not? We are opportunity driven and we will let the opportunities dictate where we go next. That said, TOM LAPINSKI is CEO and chairman of the board and has served in that capacity since Torchlights inception in 2010. He co-founded Torchlight Energy Inc., Torchlight Energy Resources wholly owned subsidiary, and led the transition to the public company in November 2010. Since 2002 he has engaged in consulting work globally in the oil and gas space. From September 1996 to June 2002, he was president of Stephens Energy International of The Stephens Group LLC. He spent more than 30 years in senior positions with Amoco Corp. both internationally and domestically (Midcontinent) before retiring. He holds a degree in geophysical engineering from the Colorado School of Mines. Texas Oklahoma Central, OK Wilson County, TX Kansas McPherson, KS Hunton Carbonate Dolomite Eagle Ford, Austin Chalk and Buda Georgetown Vertical Mississippi Finney/Gray, KS s KS TORCHLIGHT ENERGY RESOURCES INC. NASDAQ: TRCH | TORCHLIGHTENERGY.COM
IR Contact: Derek Gradwell, 512-270-6990. dgradwell@mzgroup.us we are basically a Midcontinent player, but we are open to looking for opportunities elsewhere if the economics are strong enough. What is your projected budget, how many wells does it include, and how does it compare to 2013? Our projected capital expenditure budget for 2014 is approximately $36 million. We estimate that we will participate in close to 100 wells by the end of 2014. Our exit for 2013 on a net production basis and gross wellbore basis was approximately 1/10 of what we expect to accomplish this year. Are you constrained by midstream capacity? No, where we are now involved there is established production and facilities are there.There have been mil- lions in developmental dollars spent by our partners, which has paved the way for infrastructure in our core asset areas.We reap the benefit of this minus the cost. Do you foresee any acquisitions this year? As mentioned, we are opportunity driven, in fact, a good example is that we have recently entered into an area of mutual interest and lease program with our partners covering 92,000 additional acres off- setting our existing efforts. Do you employ a hedging strategy? We are not currently employing any hedges.We will, however, be looking to pursue one once we achieve the production levels where it is more impactful, later this year. What is the greatest challenge you face this year? We have a very aggressive drilling program scheduled for 2014 and 2015 and our biggest challenge is to not let the program drive us, but that we drive the drilling program.This will mean being smart on where we drill and capitalizing on the wells that make the most impact. What is the one thing you want investors to know? Very simply that our company has a tremendous opportunity runway in place. Our future drilling inventory on existing assets is more than 1,000 new well locations and growing. Any final comments or thoughts? I would reiterate that we are focused on proven, established plays with multiple pay zones. We are currently developing proven opportunities on de- risked assets, we are cash-flow positive and expect to be covering all development out of cash flow by the third quarter of 2014. We keep to a disciplined M&A strategy where we acquire projects with strong economics that offer under-one-year paybacks. We have a proven management team with more than 175 years combined experience and large acreage positions with nearly 50,000 combined gross acres in proven and producing areas and growing. ? Hart Energy | 1616 S. Voss, Ste. 1000, Houston, TX 77057 USA | +1.713.260.6400 | Fax +1.713.840.8585
TRCH, Torchlight Energy Oil and Gas Investor Article One on One

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TRCH, Torchlight Energy Oil and Gas Investor Article One on One

  • 1. Energy Companies To Watch A SPECIAL REPORT FROM THE PUBLISHER OFSPRING 2014 ONEONONE
  • 2. Oil and Gas Investor | OneOnOne: Energy Companies to Watch | Spring 2014 Describe the strategy that drives the company, and how you will implement it this year? We focus on liquids production and really con- sider our efforts to be exploitation rather than ex- ploration projects. We only participate in areas with known geology and production.We seek out partnerships with established creditable compa- nies that are almost always relationship based and provide entry into developmental projects where success is highly repeatable. A good example of how we will implement our strategy is that we recently entered into two part- nerships that provide for explosive growth with proven and experienced operators, Husky Ventures in Oklahoma and Ring Energy in Kansas.With both partnerships we have large acreage positions and are actively growing those positions. How have high oil prices and low gas prices affected your business? We focus on liquids-rich projects; however, if the economics were good on a natural gas project, we would consider that as well. Will you be expanding into any new basins or plays? Why or why not? We are opportunity driven and we will let the opportunities dictate where we go next. That said, TOM LAPINSKI is CEO and chairman of the board and has served in that capacity since Torchlights inception in 2010. He co-founded Torchlight Energy Inc., Torchlight Energy Resources wholly owned subsidiary, and led the transition to the public company in November 2010. Since 2002 he has engaged in consulting work globally in the oil and gas space. From September 1996 to June 2002, he was president of Stephens Energy International of The Stephens Group LLC. He spent more than 30 years in senior positions with Amoco Corp. both internationally and domestically (Midcontinent) before retiring. He holds a degree in geophysical engineering from the Colorado School of Mines. Texas Oklahoma Central, OK Wilson County, TX Kansas McPherson, KS Hunton Carbonate Dolomite Eagle Ford, Austin Chalk and Buda Georgetown Vertical Mississippi Finney/Gray, KS s KS TORCHLIGHT ENERGY RESOURCES INC. NASDAQ: TRCH | TORCHLIGHTENERGY.COM
  • 3. IR Contact: Derek Gradwell, 512-270-6990. dgradwell@mzgroup.us we are basically a Midcontinent player, but we are open to looking for opportunities elsewhere if the economics are strong enough. What is your projected budget, how many wells does it include, and how does it compare to 2013? Our projected capital expenditure budget for 2014 is approximately $36 million. We estimate that we will participate in close to 100 wells by the end of 2014. Our exit for 2013 on a net production basis and gross wellbore basis was approximately 1/10 of what we expect to accomplish this year. Are you constrained by midstream capacity? No, where we are now involved there is established production and facilities are there.There have been mil- lions in developmental dollars spent by our partners, which has paved the way for infrastructure in our core asset areas.We reap the benefit of this minus the cost. Do you foresee any acquisitions this year? As mentioned, we are opportunity driven, in fact, a good example is that we have recently entered into an area of mutual interest and lease program with our partners covering 92,000 additional acres off- setting our existing efforts. Do you employ a hedging strategy? We are not currently employing any hedges.We will, however, be looking to pursue one once we achieve the production levels where it is more impactful, later this year. What is the greatest challenge you face this year? We have a very aggressive drilling program scheduled for 2014 and 2015 and our biggest challenge is to not let the program drive us, but that we drive the drilling program.This will mean being smart on where we drill and capitalizing on the wells that make the most impact. What is the one thing you want investors to know? Very simply that our company has a tremendous opportunity runway in place. Our future drilling inventory on existing assets is more than 1,000 new well locations and growing. Any final comments or thoughts? I would reiterate that we are focused on proven, established plays with multiple pay zones. We are currently developing proven opportunities on de- risked assets, we are cash-flow positive and expect to be covering all development out of cash flow by the third quarter of 2014. We keep to a disciplined M&A strategy where we acquire projects with strong economics that offer under-one-year paybacks. We have a proven management team with more than 175 years combined experience and large acreage positions with nearly 50,000 combined gross acres in proven and producing areas and growing. ? Hart Energy | 1616 S. Voss, Ste. 1000, Houston, TX 77057 USA | +1.713.260.6400 | Fax +1.713.840.8585