Torchlight Energy Resources, Inc. ("Torchlight" or the "Company"), previously announced on November 16th that the Company had entered into a transaction with Greg McCabe and an independent private E&P out of Denver to enter into the Delaware Basin and to provide $6 million of liquidity for Torchlight. Today, the Company announces that the transaction has been closed between MECO IV, LLC out of Denver and Greg McCabe. Therefore, the Company has received the $6 million and has received the Working Interest and Carry in the Winkler County project.
"We are happy to get this transaction closed," stated John Brda, CEO of Torchlight. "We look forward to working with MECO IV as the operator on the project and drilling some nice wells with them in an area that is seeing a lot of activity. In addition, the liquidity will be a huge help as we continue to develop the Hazel Project and the Orogrande Project."
Sam Winegrad, co-founder of MECO IV, stated, "We are excited to be a part of this transaction with Torchlight. MECO will be adding 690 net acres and approximately 50 BOEPD to its current Winkler and Ward County, Texas position. More importantly we will have the opportunity to significantly increase that production through horizontal drilling in multiple zones in an area of the Delaware Basin that is experiencing a rapid growth in activity with excellent results. We look forward to commencing drilling operations in the first half of 2018."
MECO IV, LLC is an established Permian Basin Operator managed by Sam Winegrad and Thomas Corley. MECO IV was founded in 2014 and is funded by a consortium of private equity, institutional and high net worth investors in addition to management. MECO IV's current assets are concentrated in the Delaware Basin. Messrs. Winegrad and Corley have built and sold previous companies under the Meritage Energy name in the Permian Basin.
