Torchlight Energy Resources Inc. (TRCH) has issued an update on the progress of its joint project with Husky Ventures in Smokey Hills, Kan. Torchlight Energy, the operator of the project, successfully spud the first well in this joint project. The well is slated to be drilled to a target depth of 3,500 feet. The company expects to drill an initial 10-well test project and upon successful results, an additional 15 to 20 wells in the 18,000 acre area during the third and fourth quarter of 2014.
"We are very excited to get underway on our first well in the Smokey Hills project," said Will McAndrew, Torchlight's COO. "This marks another milestone for Torchlight as we step into the role of operator for the first time as a company and continue in our partnership with Husky. This project, targeting the Maquoketa Dolomite Formation, should provide Torchlight with additional highly prospective targets and expand our drilling inventory significantly. These wells are straight vertical wells and fit nicely into our model of participating in infield, developmental drilling where completion and production data exists. In this case we are drawing from over 800 successful wells that have produced over 23 million barrels of oil to date."
Torchlight Energy acquired a 17.8% working interest (now exceeding 75%) in the project in South Central Kansas in December 2013. Reports at the time of acquisition indicated approximately 60,000 barrels of proven recoverable reserves per well with 7,500 barrels needed to achieve payout. Original volumetric estimates are 217 million BOE in place in the 18,000 acres under lease in the Smokey Hills project. Torchlight expects the Smokey Hills project wells to provide rapid paybacks with 30 to 50 barrel projected initial production rates.
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