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
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...