Welcome!

News Feed Item

CORRECTION - Torchlight Energy Reports First Quarter 2014 Earnings

PLANO, TX--(Marketwired - May 15, 2014) - In the news release, "Torchlight Energy Reports First Quarter 2014 Earnings," issued earlier today by Torchlight Energy Resources, Inc. (NASDAQ: TRCH), please be advised that the three financial tables have been replaced. Complete corrected text follows.

Torchlight Energy Reports First Quarter 2014 Earnings

PLANO, TX -- March 15, 2014 -- Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight Energy" or "the Company"), a rapidly growing mid-continent oil and gas company, today reported its first quarter results for the three months ended March 31, 2014. The Company filed a 10-Q with the U.S. Securities and Exchange Commission for the first quarter of 2014 on May 15, 2014.

First Quarter 2014 Highlights

  • Revenues increased 198% to $0.64 million revenues for first quarter 2014 vs. 2013
  • 15 producing wells at March 31, 2014 with net 250 BOEPD
  • Drilling programs for all five initial wells with Ring Energy underway
  • Increased total acreage in the Hunton play to over 25,000 gross acres across 5 AMIs
  • Raised $7 million of capital through the sale of common stock in Q1 2014

"We remain on target with our exploration and production goals for 2014," stated Tom Lapinski, Chief Executive Officer of Torchlight Energy. "By taking smaller working interests in a number of projects in several prospective areas, we have been able to aggressively drill more lower risk wells without deploying significant amounts of capital on a per well basis. However, as we continue throughout the year, our working interest percentages should increase as we start to drill in new AMIs."

The Company had $22.2 million of assets and $12.8 million shareholders' equity at March 31, 2014 compared to $16.7 million and $9.2 million, respectively, at December 31, 2013. 

Business Updates
Torchlight Energy currently has interests in four main oil and gas projects:

1. Marcelina Creek Field Development in Wilson County, Texas
2. Ring Energy Joint Venture in Southwest Kansas
3. Hunton play in partnership with Husky Ventures in Central Oklahoma
4. Smokey Hills Prospect in McPherson County, Kansas

Torchlight Energy commenced drilling its initial 5-well program in Southwest Kansas in February 2014. This program, which is part of a joint venture agreement with Ring Energy, Inc., entails drilling vertical wells in Mississippian targets. Results have not yet been announced.

As of March 31, 2014, Torchlight Energy has five AMIs with Husky Ventures: the Cimarron Trail; the Chisolm Trail; the Viking Prospect in Central Oklahoma; the Rosedale Prospect interest in ten townships in South Central Oklahoma; and Prairie Grove prospect, the most recent AMI the Company entered into in February 2014. Total prospective acreage across all AMIs is approaching 300,000 acres. Torchlight is actively producing in 15 wells, drilling 5 wells, and fracking or flowing back 5 additional wells across all of its AMIs with Husky Ventures. 

The Company acquired an 18% working interest in the Smokey Hills Prospect in McPherson County, Kansas that included approximately 10,000 gross acres and a well, the Hoffman 1-H. Torchlight plans to increase its working interest to approximately 50% and drill 10 vertical wells in this area during late second quarter or early third quarter 2014.

Outlook

Drilling plans for the next 90 to 120 days are progressing as planned. The Company expects to continue its program of 5 wells per month with Husky, going to 6 sometime in early third quarter 2014, continue its drill program in SW Kansas with Ring Energy, drill another Austin Chalk horizontal well in South Texas starting in June or early July 2014 and lastly, Torchlight expects to begin its Central Kansas operated play by early third quarter 2014.

The Company is actively engaged in discussions for additional $20 to $25 million of debt financing in order to meet drilling capital needs for all of its programs. Looking beyond 2014 all future drilling needs are expected be met out of cash flow from continuing operations and/or borrowing capability on a traditional reserve based line of credit. 

Conference Call

Management will host a conference call at 4:15 p.m. ET on May 15, 2014 to discuss its first quarter 2014 earnings results.

Date: Thursday, May 15, 2014
Time: 4:15 pm ET
Dial-in (US): 877-941-1429
Dial-in (International): 480-629-9857
Conference ID: 4683113
Webcast: http://public.viavid.com/index.php?id=109217

A replay of the call will be available after 7:30 pm ET May 15, 2014. To access the replay, use 877-870-5176 for U.S. callers and 858-384-5517 for international callers. The PIN number is 4683113.

About Torchlight Energy

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company currently holds interests in Texas, Kansas and Oklahoma where their targets are established plays such as the Eagle Ford Shale, Mississippi Limestone and Hunton Limestone trends. For additional information on the company, please visit www.torchlightenergy.com.

Forward Looking Statement

This news release contains 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 the company's ability to obtain additional capital in the future to fund planned expansion, the demand for oil and natural gas, general economic factors, competition in the industry 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.

                                                                            
TORCHLIGHT ENERGY RESOURCES, INC.                                           
CONSOLIDATED CONDENSED BALANCE SHEETS                                       
                                                                            
                                                   March 31,    December 31,
                                                      2014          2013    
                                                  (Unaudited)    (Audited)  
                                                 ------------- -------------
                     ASSETS                                                 
Current assets:                                                             
  Cash                                           $   1,873,388 $   1,811,713
  Accounts receivable                                  629,636       429,699
  Note receivable                                      129,820             -
  Prepaid costs                                         53,823         9,144
                                                 ------------- -------------
    Total current assets                             2,686,667     2,250,556
                                                                            
Investment in oil and gas properties, net           17,964,852    13,038,751
Office Equipment                                        27,453        11,604
Debt issuance costs, net                               999,712       920,947
Goodwill                                               447,084       447,084
Other Assets                                            74,081        74,379
                                                 ------------- -------------
                                                                            
    TOTAL ASSETS                                 $  22,199,849 $  16,743,321
                                                 ============= =============
                                                                            
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
Current liabilities:                                                        
  Accounts payable                               $   2,064,080 $     985,123
  Accrued liabilities                                  240,000             -
  Related party payables                                90,000        90,000
  Convertible promissory notes, net of discount                             
   of $3,895,347 at March 31, 2014                   5,425,910             -
  Notes payable within one year                        772,397       753,904
  Due to working interest owners                       444,303       580,484
  Interest payable                                     298,520       309,498
                                                 ------------- -------------
    Total current liabilities                        9,335,210     2,719,009
                                                                            
Convertible promissory notes, net of discount of                            
 $5,500,462 at December 31, 2013                             -     4,802,711
Asset retirement obligation                             24,916        24,382
                                                                            
Commitments and contingencies                                -             -
                                                                            
Stockholders' equity:                                                       
  Common stock, par value $0.001 per share;                                 
   75,000,000 shares authorized; 18,345,308                                 
   issued and outstanding at March 31, 2014;                                
   16,141,765 issued and outstanding at December                            
   31, 2013                                             18,346        16,142
  Additional paid-in capital                        28,917,918    21,978,616
  Warrants outstanding                               7,306,170     3,043,420
  Accumulated deficit                              -23,402,711   -15,840,959
                                                 ------------- -------------
    Total stockholders' equity                      12,839,723     9,197,219
                                                 ------------- -------------
                                                                            
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $  22,199,849 $  16,743,321
                                                 ============= =============
                                                                            
                                                                            
                                                                            
TORCHLIGHT ENERGY RESOURCES, INC.                                           
CONSOLIDATED STATEMENTS OF OPERATIONS                                       
                                                                            
                                                                            
                                                THREE MONTHS   THREE MONTHS 
                                                   ENDED          ENDED     
                                                 March 31,      March 31,   
                                                    2014           2013     
                                                (Unaudited)    (Unaudited)  
                                               -------------  ------------- 
Revenue                                                                     
  Oil and gas sales                            $     642,970  $     229,204 
  Royalties                                           39,165              - 
                                                                            
Cost of revenue                                     (179,051)       (68,000)
                                               -------------  ------------- 
                                                                            
Gross income                                         503,084        161,204 
                                                                            
Operating expenses:                                                         
  General and administrative expense               5,821,068        533,549 
  Depreciation, depletion and amortization           334,331        116,847 
                                               -------------  ------------- 
    Total operating expenses                       6,155,399        650,396 
                                                                            
Other income (expense)                                                      
  Interest income                                         50              - 
  Interest and accretion expense                  (1,909,487)      (169,001)
                                               -------------  ------------- 
    Total other income (expense)                  (1,909,437)      (169,001)
                                                                            
Net loss before taxes                             (7,561,752)      (658,193)
                                                                            
Provision for income taxes                                 -              - 
                                               -------------  ------------- 
                                                                            
Net (loss)                                     $  (7,561,752) $    (658,193)
                                               =============  ============= 
                                                                            
Loss per share:                                                             
Basic and Diluted                              $       (0.48) $       (0.05)
                                               =============  ============= 
Weighted average shares outstanding:                                        
Basic and Diluted                                 15,741,749     13,634,482 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
TORCHLIGHT ENERGY RESOURCES, INC.                                           
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)                            
                                                                            
                                                THREE MONTHS   THREE MONTHS 
                                                   ENDING         ENDING    
                                                 March 31,      March 31,   
                                                    2014           2013     
                                               -------------  ------------- 
Cash Flows From Operating Activities                                        
  Net (loss)                                   $  (7,561,752) $    (658,193)
  Adjustments to reconcile net loss to net                                  
   cash from operations:                                                    
    Stock based compensation                       4,393,375        131,005 
    Accretion of convertible note discounts        1,605,025        138,194 
    Depreciation, depletion and amortization         334,331        116,847 
    Change in:                                                              
      Accounts receivable                           (199,937)        30,981 
      Note receivable                               (129,820)             - 
      Prepaid expenses                               (44,679)       (11,538)
      Other assets                                       298              - 
      Accounts payable and accrued liabilities     1,318,957        146,750 
      Related party payable                                -          4,852 
      Due to working interest owners                (136,181)             - 
      Asset retirement obligation                        534              - 
      Interest payable                               (24,168)        42,369 
                                               -------------  ------------- 
Net cash used in operating activities               (444,017)       (58,733)
                                               -------------  ------------- 
                                                                            
Cash Flows From Investing Activities                                        
  Investment in oil and gas properties            (5,247,243)      (198,918)
  Acquisition of office equipment                    (15,849)             - 
                                               -------------  ------------- 
Net cash used in investing activities             (5,263,092)      (198,918)
                                               -------------  ------------- 
                                                                            
Cash Flows From Financing Activities                                        
  Proceeds from sale of common stock               5,570,291              - 
  Proceeds from warrant exercise                     180,000              - 
  Proceeds from promissory notes                      18,493      1,627,680 
  Repayment of promissory notes                            -        (51,000)
                                               -------------  ------------- 
Net cash provided by financing activities          5,768,784      1,576,680 
                                               -------------  ------------- 
                                                                            
Net increase (decrease) in cash                       61,675      1,319,029 
Cash - beginning of period                         1,811,713         63,252 
                                               -------------  ------------- 
                                                                            
Cash - end of period                           $   1,873,388      1,382,281 
                                               =============  ============= 
                                                                            
Supplemental disclosure of cash flow                                        
 information:                                                               
  Non cash transactions:                                                    
    Common stock issued for services           $       7,375  $           - 
    Warrants issued in connection with                                      
     promissory notes                          $           -  $     294,378 
    Warrants issued for services               $   4,464,765  $           - 
    Beneficial conversion feature on                                        
     promissory notes                          $           -  $     593,170 
    Common stock issued in conversion of                                    
     promissory notes                          $     981,825  $           - 
    Common stock issued in warrant exercises   $     180,000  $           - 
    Asset retirement obligation                $           -  $           - 
    Interest paid                              $     309,498  $       5,868 
                                                                            
                                                                            

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...