A ROTH Capital Partners report detailed the
transaction.
In a July 27 research note, analyst John White with ROTH Capital Partners
reported that on July 25 Torchlight Energy Resources Inc. (TRCH:NASDAQ) entered an
agreement that will boost its interest in the Orogrande project to 72.5% from
67.75%.
The parties involved in the agreement were Torchlight and its wholly owned
subsidiary Hudspeth Oil Corp., Founders Oil & Gas, and two companies
solely owned by Torchlight's chairman, Gregory McCabe—Wolfbone Investments
and McCabe Petroleum.
Under the terms, Torchlight and Wolfbone will each pay $625,000, and for
Torchlight and Wolfbone or McCabe Petroleum to each pay another $625,000 on
July 20, 2019. In exchange, Founders Oil & Gas will sign over equally to
Torchlight and Wolfbone all of its interest in the Orogrande project's oil
and gas leases.
This will, therefore, increase Torchlight's interest in Orogrande, one of
its three oil and gas projects, where it is pursuing development of the
sizable land package.
ROTH has a Buy rating and a $1.75 per share price target on Torchlight,
whose share price is currently $1.17.
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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and
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Disclosures from ROTH Capital Partners, Torchlight Energy Resources
Inc., Flash Note, July 27, 2018
Regulation Analyst Certification ("Reg AC"): The research
analyst primarily responsible for the content of this report certifies the
following under Reg AC: I hereby certify that all views expressed in this
report accurately reflect my personal views about the subject company or
companies and its or their securities. I also certify that no part of my
compensation was, is or will be, directly or indirectly, related to the
specific recommendations or views expressed in this report.
Within the last twelve months, ROTH has received compensation for
investment banking services from Torchlight Energy Resources, Inc.
ROTH makes a market in shares of Torchlight Energy Resources, Inc., and
as such, buys and sells from customers on a principal basis.
A Research Analyst and/or a member of the Analyst's household own(s)
debt or equity securities of Torchlight Energy Resources, Inc. stock.
Shares of Torchlight Energy Resources, Inc. may be subject to the
Securities and Exchange Commission's Penny Stock Rules, which may set forth
sales practice requirements for certain low-priced securities.
Within the last twelve months, ROTH has managed or co-managed a public
offering for Torchlight Energy Resources, Inc.
ROTH Capital Partners, LLC expects to receive or intends to seek
compensation for investment banking or other business relationships with the
covered companies mentioned in this report in the next three months.