Torchlight Gears Up To Farm Into Texas Block

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Description

Finalized farm in for 40% to 940-acre block in Waller County, TX.

Torchlight Energy Resources Inc., Houston, (OTCBB: TRCH) plans to farm into a gas and condensate prospect in Waller County, Texas, held by Houston-based La Sal Energy for an undisclosed price.

Torchlight plans to fund the reentry and fracture stimulation program on the 940-acre block controlled and operated by La Sal in exchange for a 40% interest in the block. The block is a direct offset and extension to the Katy Field discovered by Exxon in the mid-1960's. The field is reported to have had 6 TCF of gas and many wells are still producing today. The farmin project will target the Sparks formation, the main producing zone in Katy Field.

Torchlight will also have the option to increase its working interest up to an additional 5% following the results of the re-entry.

Torchlight chief executive Tom Lapinski says, “It also has the potential for more than one productive zone and the gas is rich in condensate which adds significant value to the economics.”

The re-entry is expected to be done as soon the farm-in documents are executed and contract services can be scheduled. The farm-in should be finalized by Dec. 22.