Torchlight Energy Resources Inc. (NasdaqCM: TRCH) detailed its year-end 2013 financial results, the company said March 31.
Year-over-year (yoy), in 2013 Torchlight Energy had more assets and equity than in 2013. At year’s end, the company had $16.7 million in assets and $9.2 million in shareholders’ equity, compared to year-end 2012’s $4.5 million in assets and $3 million in shareholders’ equity, the company said.
Overall year-end 2013 revenues stood at $1.2 million after an increase of 20%, Torchlight added.
In order to meet this year’s drilling capital needs, the company will need to raise an additional $20 million to $25 million, Torchlight said, noting that after this year, drilling needs should be met through cash flow from continuing operations and reserve-based credit borrowing.
The company began drilling five wells in southwest Kansas in February under a joint-venture agreement with Ring Energy Inc. (NYSE MKT: REI), Torchlight said.
This year, 90 or more wells may be drilled on a combined basis in the company’s South Texas, Hunton and Kansas areas, Torchlight said.
Regarding year-end 2013 equity, on Jan. 31 Torchlight completed two private placements for $6.15 million in net proceeds, the company said. In the placements, 1,750,000 restricted common stock shares and 437,541 warrants exercisable at $6 per share and expiring Dec. 31, 2018 were sold, the company said.
"I am pleased with the tremendous progress we have made over the past twelve months," said CEO Tom Lapinski.
He continued, "We significantly increased our acreage and diversified our asset base by securing agreements with proven operators such as Husky Ventures and Ring Energy.”
He added, “We also improved our corporate governance and trading liquidity by adding three new independent board directors and successfully uplisting to the Nasdaq. Our strategy of expanding production and reserves by drilling lower-risk wells with multiple pay zones in highly prospective locations should continue to deliver solid returns for our shareholders."
Plano, Texas-based Torchlight Energy Resources Inc. acquires and develops domestic oil and natural gas assets.