Torchlight Energy Resources Inc (NASDAQ:TRCH) reported that it has finalized a Letter of Intent to increase its stake to 74% amongst 12,000 gross acres leading to 8,880 net acres in Midland Basin Wolfcamp play.

The highlights

In the last month, the holders of Torchlight Energy’s Series ‘C’ Preferred shares chose to convert into Working stake in the firm’s Hazel Project, reducing company’s stake to 33.33% Working Interest. Upon completion of the transactions anticipated by the Letter of Intent, the company would get further 40.66% Working Interest from a firm owned and managed by its Chairman, Mr. Greg McCabe, increasing firm’s total stake to 74%.

In the mentioned transaction, which is contingent to a definitive deal, Torchlight would compensate McCabe around 3.301 million shares of TRCH common stock and simultaneously therewith McCabe would scratch or cause to be annulled nearly 3.301 million outstanding warrants, hence resulting in a non-dilutive event for company and a purchase cost equivalent to nearly $663 per acre.

Torchlight would be accountable for related expenses and costs at closing. The LOI is nonbinding, and finalization into a definitive deal and completion of the transaction will be dependent on the approval of Torchlight’s Board and a fairness letter which will be offered to the firm by a third party.

John Brda, the CEO, said that they are extremely thrilled to enhance working interest in the Hazel area. After considerably de-risking the play lately by drilling first test well, this deal is accretive and timely. The Chairman has developed remarkable confidence in firm as shown in this and also in previous deals with him.

McCabe has been a notable source of expertise and they appreciate the prospects provided to the company. This deal, like the others Torchlight have implemented with Greg (including the initial Hazel acquisition and Orogrande), offers increased access for company into one of the most thrilling plays in the nation. They anticipate the deal to be finalized in the coming few weeks.

Previous articlePharmacyte Biotech Inc (OTCMKTS:PMCB) Awaits U.S. FDA to Get Pancreatic Cancer Therapy Into Crucial Clinical Trial
Next articleCEO Jeff Quiram On Superconductor Technologies, Inc. (NASDAQ:SCON) 3Q2016 Performance
Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.