Energy Prospectus

Any idea why Torchlight got torched yesterday?

Very negative Seeking Alpha article came out today (June 9). Here it is.

http://seekingalpha.com/article/2257853 ... ay-go-to-0

TRCH has to report strong production growth this year to justify their market valuation. At our luncheon in Dallas they said production would be close to 2,000 boepd by year-end. They said they are participating in 90+ gross wells this year. Keep in mind that "gross" and "net" are two very different things.

TRCH is definitely a very high risk / high reward investment. Very speculative at this point. This is why I posted that I need at least another quarter of actual results before I can begin to build a forecast model.

Dan Steffens
Energy Prospectus Group

See headlines this morning.

I'm not defending or recommending TRCH at this point, but that article yesterday that started the selloff was full of weak arguments. TRCH has been telling the market that they are headed to 2,000 boepd of net production by year-end. If they get to half that amount the company should be fine.

TRCH is VERY SPECULATIVE at this point.

June 10, 2014 08:13 ET

Torchlight Acquires Additional Husky Operated Hunton Assets and Cash

Reiterates Production Guidance of 500 BOEPD Net Q2 Exit Rate

PLANO, TX--(Marketwired - June 10, 2014) - Torchlight Energy Resources, Inc. (NASDAQ: TRCH) ("Torchlight" or "the Company"), a rapidly growing mid-continent oil and gas company, has announced the closing of the acquisition of certain oil and gas assets located in Oklahoma, including additional acreage, additional interests in three areas of mutual interest ("AMI") and additional working interest (WI) in producing wells and wells currently being drilled. A wholly-owned subsidiary of the Company acquired the properties and also received $1.65 million in cash in the transaction.

Torchlight will issue 1,350,000 restricted shares as consideration for the assets and cash, valuing the transaction at Friday's closing share price for TRCH ($4.39) at $5,926,500. The transaction closed on Friday, June 6, 2014 with an unaffiliated third party whom owns extensive assets in the same AMIs that Torchlight has interest in.

"This acquisition accomplishes many goals for Torchlight," noted Willard McAndrew, COO of Torchlight, "We pick up cash for use in our drilling projects, we gain additional WI in three prolific AMIs with Husky Ventures, we acquired ownership in producing wells and interests in wells that are being drilled or are in the process of being stimulated for production. Any opportunity to continue to expand with Husky is something we will look to pursue, as they have demonstrated the ability to make great wells in the Hunton play."

The oil and gas assets acquired include a 5% additional WI (bringing TRCH's total to 30%) in two AMI's and 2.7% additional WI (bringing our total to 18%) in a third AMI.

The company also acquired varying amounts of WI in ten producing wells, two wells that are drilled but waiting completion four wells that are either in the process of being drilled or stimulated. Each interest acquired increases Torchlight's existing ownership in the subject wells, as the Company already has ownership exposure in each.

Torchlight reiterates its production guidance for Q2 (June 30, 2014) of an exit rate of 500 BOEPD net to Torchlight's WI.

About Torchlight Energy

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company currently holds interests in Texas, Kansas and Oklahoma where its targets are established plays such as the Eagle Ford Shale, Mississippi Limestone and Hunton Limestone trends. For additional information on the company, please visit www.torchlightenergy.com.