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     4870  0 Kommentare Torchlight Energy Reports Second Quarter 2014 Earnings

    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 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 in 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 MONTHS     THREE MONTHS     SIX MONTHS     SIX MONTHS  
        ENDED     ENDED     ENDED     ENDED  
        June 30, 2014     June 30, 2013     June 30, 2014     June 30, 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   $ -   $ -

    Investor Relations Contact

    Derek Gradwell
    SVP, Natural Resources
    MZ Group North America
    Phone: 512-270-6990
    Email: dgradwell@mzgroup.us 
    Web: www.mzgroup.us




    Verfasst von Marketwired
    Torchlight Energy Reports Second Quarter 2014 Earnings 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 …