Torchlight Energy Resources Inc. (NASDAQ: TRCH) said May 7 Delaware Basin project in Winkler County, Texas, has begun with the drilling phase of the first project well located on 320 newly acquired acres offsetting the original leasehold Torchlight entered in December 2017.

The Plano, Texas-based E&P expects the most likely target of its first Winkler project well, the UL 21 War-Wink 47 #2H, to be the Wolfcamp A interval.

Torchlight’s operating partner, MECO IV, has begun the pilot hole on the project and is currently drilling ahead at 3,500 ft. The plan is to evaluate the various potential zones for a lateral leg to be drilled once logging is completed.

The additional acreage was leased by MECO IV under the area of mutual interest agreement (AMI) and Torchlight recently exercised its right to participate for its 12.5% in the additional 1,080 gross acres. Torchlight’s carried interest in the first well, as outlined in the AMI agreement, was originally planned to be on the first acreage acquired. That carried interest is being applied to this new well and will allow MECO IV to drill and produce potential revenues sooner than originally planned.

The primary leasehold is a 320-acre block directly west of the current position and will allow for 5,000-ft lateral wells to be drilled.

“We are excited to be entering the Delaware Basin with our technically strong operating partner MECO IV out of Denver,” said John Brda, CEO of Torchlight, in a statement. “The well is in an excellent area with premier offset operators making excellent wells in multiple pay zones. We look forward to MECO executing on the technical and scientific aspects of the project, ultimately delivering a 5,000-ft lateral in the best pay zone identified.”