Torchlight Energy Resources Inc. said on Feb. 25 it struck oil and gas at one of its development wells in the Orogrande Basin in West Texas.

The oil producer said it expects the new field—The Upper Pennsylvanian Silt (WolfPenn)—to be an oil-rich reservoir with significant volumes of gas as well, and that the geological properties are similar to the Wolfbone and Wolfberry plays in the prolific Permian Basin.

Torchlight Energy, which is in the process of changing the production design to boost the flow, said its peak 24-hour production rates to date stand at 15 barrels of oil per day and 110,000 cubic feet of gas per day.

Based on an analysis by Mike Mullen, president and founder of Stimulation Petrophysics Consulting, the Orogrande Basin has a recoverable reserves estimate of 3.7 billion barrels of oil equivalent, the Plano, Texas-based company said.

Torchlight Energy is considering all options for the prospect, including field-level investment by a partner or an outright sale of the project, CEO John Brda told Reuters, adding that the oil producer signed confidentiality agreements with about half-a-dozen suitors in its data room.

The company also has other suitors who could be brought into the data room under a confidentiality agreement.

Onshore