Torchlight Energy Resources, Inc. (NASDAQ: TRCH) announced that the Company has entered into an agreement to acquire 25% working interest in a new area of mutual interest (AMI) covering approximately 92,000 acres with Husky Ventures and two other private entities. This transaction increases Torchlight Energy's acreage in the Hunton to approximately 13,400 gross acres.
Will McAndrews, COO of Torchlight Energy, explained, "We are very excited about expanding our relationship with Husky Ventures and look forward to participating at a higher working interest in this play alongside of an experienced operator. The Husky Ventures team has demonstrated a unique ability to uncover and develop tremendous plays. These properties provide excellent opportunities for us to increase our production and cash flows in a capital efficient, low-risk manner."
The AMI spans four townships covering approximately 92,000 acres. Currently 4,200 acres have been leased while ongoing efforts are underway on finalizing the remaining acreage. Husky Ventures will target formations in the Hunton, Woodford Shale and Simpson Sands, with additional stacked pay behind pipe. The Company anticipates drilling the first well by the end of the first quarter of 2014.
Chuck Long, CEO of Husky Ventures, stated, "At this point in our lifecycle, we can begin to pick and choose our partners for our projects. We have chosen to partner with Torchlight on this project because they have consistently met their commitments in their participation in our previous AMIs. We look forward to developing tremendous wells together and delivering strong returns to all respective stakeholders."
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