Business Process

There are three primary business processes that the company adheres to including Investment Evaluation and Review, Operations and Field Activities and Administrative and Finance Management. Each one of these business process offers the company an opportunity to seek a distinct partner or alliance as the company grows and expands its operations.

1. Investment Evaluation and Review. This is the first and primary step in the company’s operations as recognition of quality investment opportunities is key to Torchlight’s growth and profitability. Broadly, this process incorporates prospect acquisition, regional and local geological and geophysical evaluations, data processing, economic analysis, lease acquisition and negotiations, permitting and field supervision. This is where the company’s experienced management team can add the most value as they will be in charge of investment evaluation while expert or specific technical support will be outsourced as needed. If management decides to invest in a project and take it to development, only then will additional staff with very specific responsibilities be hired, which should help to keep fixed costs down. Building a network of advisors is key to the pipeline of high quality opportunities as many attractive investment opportunities could be presented from outside companies as well as from the large informal community of geoscientists and engineers. 

2. Operations and Field Activities. This business process only begins after the management approval of an investment and incorporates well site supervision, construction, drilling, logging, product marketing and transportation. Torchlight’s strategy is to very rarely be the actual operator; instead, the company plans to farm- out sufficient interests to third parties that will be responsible for these operating activities while the Company will provide personnel to monitor these activities and associated costs.

3. Administrative and Finance Management. This business process will be responsible for coordinating initial structuring and capitalization, general operations and accounting, reporting, audit, banking and cash management, regulatory agencies reporting and interaction, timely and accurate payment of royalties, taxes, leases rentals, vendor accounts and performance management that includes budgeting and maintenance of financial controls, as well as interface with legal counsel and tax and other financial and business advisors. These services are currently available from a variety of experienced sources; however, the company is working on identifying a single outsourced vendor that will provide all or a majority of these services.