Click here to close now.


News Feed Item

Torchlight Energy Reports Second Quarter 2014 Earnings

Reiterates Expected Exit Rate for 2014 of 2,000 BOEPD

PLANO, TX--(Marketwired - August 14, 2014) - Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight Energy" or "the Company"), a rapidly growing mid-continent oil and gas company, today reported its second quarter results for the three months and six months ended June 30, 2014. The Company filed a 10-Q with the U.S. Securities and Exchange Commission for the second quarter of 2014 on August 14, 2014.

Second Quarter 2014 Highlights:

  • Sequential revenues increased 253% to $1.63 million from $0.64 million revenues from the first quarter of 2014
  • Revenues increased 1013% to $1.63 million from $ 0.16 million compared to the second quarter of 2013
  • 27 producing wells at June 30, 2014 with net 387 BOEPD
  • Spud first well in Smokey Hills joint project with Husky Ventures
  • Added to Russell Microcap® Index on June 27, 2014

"While our production target for the end of the second quarter was pushed out by a few weeks into the third quarter, we are happy that we remain on track with our plans to exit 2014 at our previously stated goal of 2,000 BOEPD," stated Tom Lapinski, Chief Executive Officer of Torchlight Energy. "We are extremely pleased with the drill results from our partnerships with Ring Energy and Husky Ventures. We see additional opportunities to earn rapid payback on new wells across several of our projects we plan to drill between now and the end of the year."

The Company had $30.8 million of assets and $17 million shareholders' equity at June 30, 2014 compared to $16.7 million and $9.2 million, respectively, at December 31, 2013. 

Business Updates

Torchlight Energy currently has interests in five oil and gas projects:

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

As of June 30, 2014, Torchlight Energy has five AMI's with Husky Ventures: the Chisolm Trail AMI, the Cimarron Trail; the Viking Prospect, the Rosedale Prospect and the Prairie Grove Prospect, all in Central Oklahoma.

During the second quarter, 2014 the Company acquired additional interest in three AMIs and additional working interest in producing wells and wells currently being drilled in the Hunton in exchange for 912,845 restricted shares of Torchlight common stock. Torchlight is actively producing in 21 wells, drilling 4 wells, and 8 wells in various stages of completion across all of its AMI's with Husky Ventures. 

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. As of June 30, 2014, Torchlight is in well five of the first five-well drill program.

Torchlight is currently drilling the first wells in a ten-well program in the Smoky Hills Project to evaluate the economic viability of vertical drilling in the area. We are putting our first well into production this week in the play and expect it to be in line with expectations. Torchlight is operating the Smoky Hills project.

Torchlight current has three producing wells in the Marcelina Creek Development: a horizontal re-entry well known as the Johnson 1-H; a vertical well known as the Johnson #4; and a lateral well known as the Johnson #2-H. These three wells are currently producing approximately 120 BOPD in aggregate. The Company is determining the exact location of the fourth well to be drilled under the participation agreement with Bayshore Operating Corporation, LLC.

On August 7, 2014, Torchlight signed a definitive agreement with McCabe Petroleum to acquire 100% Working Interest in 172,000 acres in the Orogrande Basin in West Texas for 865,000 shares of Torchlight common stock and $100,000 in cash. The Company will be the operator of the project once it closes in September 2014.

2014 Outlook

Over the next 90 to 120 days, our expectations are to: 1) continue the rapid pace in the Hunton play with Husky Ventures; 2) complete the next set of wells and 3D survey with Ring Energy; 3) continue to develop our Smoky Hills project; and 4) drill the next Austin Chalk well in South Texas. In addition, the Orogrande project will be evaluated over the next month or two and preparations for the first test wells in the project will continue.

Conference Call

Management will host a conference call at 11:00 a.m. ET on August 15, 2014 to discuss its second quarter 2014 earnings results.

Date: Friday, August 15, 2014
Time: 11:00 am ET
Dial-in (US): 888-430-8691
Dial-in (International): 719-325-2448
Conference ID: 7374406

A replay of the call will be available after 2:00 pm ET August 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 7374406.

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

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                                       
                                                     June 30,   December 31,
                                                       2014         2013    
                                                    (Unaudited)   (Audited) 
                                                   ------------ ------------
Current assets:                                                             
 Cash                                              $  1,053,571 $  1,811,713
 Accounts receivable                                    330,976      429,699
 Production revenue receivable                          777,989            -
 Note receivable                                        294,318            -
 Prepayments - development costs                        824,383        9,144
 Prepaid expenses                                        39,000            -
                                                   ------------ ------------
  Total current assets                                3,320,237    2,250,556
Investment in oil and gas properties, net            26,316,900   13,038,751
Office Equipment                                         61,706       11,604
Debt issuance costs, net                                625,980      920,947
Goodwill                                                447,084      447,084
Other Assets                                             74,894       74,379
                                                   ------------ ------------
  TOTAL ASSETS                                     $ 30,846,801 $ 16,743,321
                                                   ------------ ------------
       LIABILITIES AND STOCKHOLDERS' EQUITY                                 
Current liabilities:                                                        
 Accounts payable                                  $  3,479,071 $    985,123
 Accrued liabilities                                    240,000            -
 Related party payables                                  90,000       90,000
 Convertible promissory notes, net of discount of                           
 at June 30, 2014                                     5,952,513            -
 Notes payable within one year                          674,690      753,904
 Due to working interest owners                         528,438      580,484
 Interest payable                                       277,084      309,498
                                                   ------------ ------------
  Total current liabilities                          11,241,796    2,719,009
Convertible promissory notes, net of discount of                            
 $587,010 at June 30, 2014 and $5,500,462 at                                
 December 31, 2013                                    2,610,490    4,802,711
Asset retirement obligation                              25,975       24,382
Commitments and contingencies                                 -            -
Stockholders' equity:                                                       
 Common stock, par value $0.001 per share;                                  
  75,000,000 shares authorized; 20,440,210 issued                           
  and outstanding at June 30, 2014 16,141,765                               
  issued and outstanding at December 31, 2013            20,440       16,142
 Additional paid-in capital                          35,776,392   21,978,616
 Warrants outstanding                                 7,505,270    3,043,420
 Accumulated deficit                                -26,333,562  -15,840,959
                                                   ------------ ------------
  Total stockholders' equity                         16,968,540    9,197,219
                                                   ------------ ------------
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 30,846,801 $ 16,743,321
                                                    -----------  -----------
TORCHLIGHT ENERGY RESOURCES, INC.                                           
CONSOLIDATED STATEMENTS OF OPERATIONS                                       
                           THREE        THREE                               
                           MONTHS       MONTHS     SIX MONTHS    SIX MONTHS 
                           ENDED        ENDED         ENDED        ENDED    
                          June 30,     June 30,     June 30,      June 30,  
                            2014         2013         2014          2013    
                        (Unaudited)  (Unaudited)   (Unaudited)  (Unaudited) 
                        -----------  -----------  ------------  ----------- 
  Oil and gas sales     $ 1,630,035  $   160,882  $  2,273,005  $   390,086 
  SWD and royalties           9,799        9,304        48,964        9,304 
Cost of revenue            (397,184)     (93,021)     (576,235)    (161,021)
                        -----------  -----------  ------------  ----------- 
Gross income              1,242,650       77,165     1,745,734      238,369 
Operating expenses:                                                         
  General and                                                               
   expense                1,318,179    1,581,102     7,139,247    2,114,651 
   depletion and                                                            
   amortization             628,372      237,737       962,703      354,584 
                        -----------  -----------  ------------  ----------- 
    Total operating                                                         
     expenses             1,946,551    1,818,839     8,101,950    2,469,235 
Other income (expense)                                                      
  Interest income                 6           40            56           40 
  Interest and                                                              
   accretion expense     (2,226,957)    (566,458)   (4,136,444)    (735,459)
                        -----------  -----------  ------------  ----------- 
    Total other income                                                      
     (expense)           (2,226,951)    (566,418)   (4,136,388)    (735,419)
Net loss before taxes    (2,930,852)  (2,308,092)  (10,492,604)  (2,966,285)
  Provision for income                                                      
   taxes                          -            -             -            - 
                        -----------  -----------  ------------  ----------- 
Net (loss)              $(2,930,852) $(2,308,092) $(10,492,604) $(2,966,285)
                        ===========  ===========  ============  =========== 
Loss per share:                                                             
Basic and Diluted       $     (0.17) $     (0.17) $      (0.68) $     (0.22)
                        ===========  ===========  ============  =========== 
Weighted average shares                                                     
Basic and Diluted        15,334,868   13,758,277    17,184,891   13,614,318 
                        ===========  ===========  ============  =========== 
TORCHLIGHT ENERGY RESOURCES, INC.                                           
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)                            
                                                 SIX MONTHS     SIX MONTHS  
                                                   ENDING         ENDING    
                                               June 30, 2014  June 30, 2013 
                                               -------------  ------------- 
Cash Flows From Operating Activities                                        
  Net (loss)                                   $ (10,492,604) $  (2,966,285)
  Adjustments to reconcile net loss to net                                  
   cash from operations:                                                    
    Stock based compensation                       4,753,686      1,352,005 
    Accretion of convertible note discounts        3,158,850        574,895 
    Depreciation, depletion and amortization         962,703        354,584 
    Change in:                                                              
      Accounts receivable                             85,677        (37,156)
      Note receivable                               (294,318)             - 
      Production revenue receivable                 (777,989)               
      Prepayment of development costs               (824,383)               
      Prepaid expenses                               (29,856)       (28,228)
      Debt isssuance costs amortization              373,732       (601,101)
      Other assets                                      (515)             - 
      Accounts payable and accrued liabilities     2,408,948       (166,439)
      Related party payable                                -         19,852 
      Due to working interest owners                 (52,046)             - 
      Asset retirement obligation                      1,593              - 
      Interest payable                               (22,900)       107,587 
                                               -------------  ------------- 
Net cash used in operating activities               (749,422)    (1,390,286)
                                               -------------  ------------- 
Cash Flows From Investing Activities                                        
  Investment in oil and gas properties           (10,789,519)    (3,879,519)
  Acquisition of office equipment                    (53,960)             - 
                                               -------------  ------------- 
Net cash used in investing activities            (10,843,479)    (3,879,519)
                                               -------------  ------------- 
Cash Flows From Financing Activities                                        
  Proceeds from sale of common stock               7,220,291              - 
  Proceeds from issuance of convertible notes      3,197,500                
  Proceeds from warrant exercise                     379,982              - 
  Proceeds from promissory notes                      36,986      6,041,800 
  Repayment of promissory notes                            -        (51,000)
                                               -------------  ------------- 
Net cash provided by financing activities         10,834,759      5,990,800 
                                               -------------  ------------- 
Net increase (decrease) in cash                     (758,142)       720,995 
Cash - beginning of period                         1,811,713         63,252 
                                               -------------  ------------- 
Cash - end of period                           $   1,053,571  $     784,247 
                                               =============  ============= 
Supplemental disclosure of cash flow information:                           
  Non cash transactions:                                                    
    Cash paid for interest                     $      601,384 $       26,665
    Common stock issued for services           $      168,577 $            -
    Warrants issued in connection with                                      
     promissory notes                          $      405,016 $      914,449
    Warrants issued for services               $    4,663,865 $            -
    Beneficial conversion feature on                                        
     promissory notes                          $      195,466 $    1,827,100
    Liabilitities assumed-purchase of                                       
     properties                                $            - $    1,809,572
    Sale of properties for note receivable     $            - $      990,000
    Common stock issued for mineral interests  $    3,225,629 $            -
    Capitalized interest cost                  $            - $       32,335
    Common stock issued in conversion of                                    
     promissory notes                          $    1,995,575 $            -
    Common stock issued in warrant exercises   $      380,000 $            -
    Asset retirement obligation                $            - $            -

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
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Containers are all the rage among developers and web companies, but they also represent two very substantial benefits to larger organizations. First, they have the potential to dramatically accelerate the application lifecycle from software builds and testing to deployment and upgrades. Second they represent the first truly hybrid-approach to consuming infrastructure, allowing organizations to run the same workloads on any cloud, virtual machine or physical server. Together, they represent a ver...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
As operational failure becomes more acceptable to discuss within the software industry, the necessity for holding constructive, actionable postmortems increases. But most of what we know about postmortems from "pop culture" isn't actually relevant for the software systems we work on and within. In his session at DevOps Summit, J. Paul Reed will look at postmortem pitfalls, techniques, and tools you'll be able to take back to your own environment so they will be able to lay the foundations for h...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
DevOps Summit, taking place at the Santa Clara Convention Center in Santa Clara, CA, and Javits Center in New York City, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innov...
Chris Van Tuin, Chief Technologist for the Western US at Red Hat, has over 20 years of experience in IT and Software. Since joining Red Hat in 2005, he has been architecting solutions for strategic customers and partners with a focus on emerging technologies including IaaS, PaaS, and DevOps. He started his career at Intel in IT and Managed Hosting followed by leadership roles in services and sales engineering at Loudcloud and Linux startups.
The IoT is upon us, but today’s databases, built on 30-year-old math, require multiple platforms to create a single solution. Data demands of the IoT require Big Data systems that can handle ingest, transactions and analytics concurrently adapting to varied situations as they occur, with speed at scale. In his session at @ThingsExpo, Chad Jones, chief strategy officer at Deep Information Sciences, will look differently at IoT data so enterprises can fully leverage their IoT potential. He’ll sha...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!