Click here to close now.




















Welcome!

News Feed Item

CORRECTION - Torchlight Energy Reports Second Quarter 2014 Earnings

Reiterates Expected Exit Rate for 2014 of 2,000 BOEPD

PLANO, TX--(Marketwired - August 14, 2014) - In the news release, "Torchlight Energy Reports Second Quarter 2014 Earnings," issued earlier today by Torchlight Energy Resources, Inc. (NASDAQ: TRCH), we are advised by the company that the first and second bullets of the third paragraph should read "Sequential revenues increased 155% to $1.63 million from $0.64 million revenues from the first quarter of 2014" and "Revenues increased 919% to $1.63 million from $ 0.16 million compared to the second quarter of 2013" rather than "Sequential revenues increased 253% to $1.63 million from $0.64 million revenues from the first quarter of 2014" and "Revenues increased 1013% to $1.63 million from $ 0.16 million compared to the second quarter of 2013" as originally issued. Complete corrected text follows.

Torchlight Energy Reports Second Quarter 2014 Earnings

Reiterates Expected Exit Rate for 2014 of 2,000 BOEPD

PLANO, TX -- 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 155% to $1.63 million from $0.64 million revenues from the first quarter of 2014
  • Revenues increased 919% 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
Webcast: http://public.viavid.com/index.php?id=110604

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 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                                       
                                                                            
                                                     June 30,   December 31,
                                                       2014         2013    
                                                    (Unaudited)   (Audited) 
                                                   ------------ ------------
                      ASSETS                                                
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                           
  $2,355,084                                                                
 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) 
                        -----------  -----------  ------------  ----------- 
Revenue                                                                     
  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                                                               
   administrative                                                           
   expense                1,318,179    1,581,102     7,139,247    2,114,651 
  Depreciation,                                                             
   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                                                     
 outstanding:                                                               
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
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...