Torchlight Energy Resources Inc. (OTC BB: TRCH) has signed a contract providing a 15% working interest in the emerging horizontal Hunton play.
The Hunton formation is prevalent throughout central Oklahoma and has produced 114 million barrels vertically over the last several decades. This contract provides Torchlight with a 15% working interest in an AMI covering a total of 3,200 acres and is operated by Husky Ventures. Husky has already drilled 18 successful horizontal Hunton wells in the last three years. This agreement allows Torchlight to participate in 20+ new wells already identified and planned for the acreage. The horizontal Hunton wells as a whole have been getting better over time as Husky perfects its drilling and completion techniques. Recently, Gastar Exploration has reported horizontal Hunton wells in the region making 500 to 1000 BOED on a peak rate, as well as EUR's in the 450,000 BOE range.
John Brda, president of Torchlight said, "This is a great opportunity for Torchlight and we could not be more pleased. The chance to participate with the industry leader in horizontal Hunton drilling Husky Ventures, in this prolific oil producing basin, gives us the opportunity to significantly grow the company over the next couple of years as we develop the acreage contained in the AMI. Husky Ventures has proven to be an aggressive and successful operator having already drilled and completed 18 wells."
Torchlight Energy Resources is headquartered in Houston.
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