Torchlight Eliminates $7.5 Million in Debt
PLANO, TX / ACCESSWIRE / March 10, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH) ("Torchlight" or the "Company"), today announced that the debt holders of $6 million in principal and $1.5 million in accrued interest have elected to convert into Working Interest in the Orogrande, per their right of conversion when the transaction was consummated.
The transaction immediately eliminates $7.5 Million in debt for the Company and brings Torchlight's Working Interest in the Project to 66.5%. Additional details are outlined in the 8k filed on March 10, 2020.
"By electing conversion into Working Interest, the debt holders, who are seasoned and knowledgeable oil and gas investors, have signaled their confidence in the value of our Orogrande assets," stated John Brda, Torchlight's CEO. "The conversion correlates to approximately $1100 an acre on the 134,000-acre play. The value was determined prior to any drilling, scientific data gathering, or hydrocarbon discovery from recent wells in the project. We feel that the conversion sets a benchmark for the Orogrande which recent developments continue to improve upon. We will continue to grow value as we work to improve the balance sheet and make significant progress in the field.
"Regarding the recent commodity price downturn, Torchlight has some insulation as a pre-production company with focused efforts on the marketing of our assets using the long term price deck. The suitors for a large asset like the Orogrande Project consider 20-year-plus time horizons for development plans, the supply and demand relationship and associated commodity prices. We will continue to shore up our balance sheet, work towards a transactional outcome and focus on the science behind what is the largest onshore domestic oil and natural gas field discovery in over 30 years."
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 has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.
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 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 could 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.
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SOURCE: Torchlight Energy Resources, Inc.
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