Torchlight Dividend Update: A Closer Look at Share Values and Oil and Gas Properties

As the merger between Torchlight Energy Resources (TRCH) and Metamaterial (MMATF) approaches, investors are eager to understand the potential impact on share values. In this article, we'll take a closer look at the latest information available and explore the value of Torchlight's oil and gas properties.

According to recent reports, one Torchlight share is currently valued at $2.29 USD, with some estimates suggesting that the net value of its oil and gas properties could be around $2.08 USD per share. This raises an interesting question: how does this compare to Metamaterial's shares?

Using Metamaterial's circular formula, it's estimated that Torchlight may issue approximately 403 million shares in exchange for Metamaterial's shares, which would imply around 3.3 Torchlight shares for each Metamaterial share. Currently, Metamaterial has around 122 million fully diluted shares, while Torchlight has around 153 million fully diluted shares.

To put this into perspective, the former operator of the Orogrande Project sold its 9.5% working interest in the assets for $2.5 million in 2018. This gives an idea of the potential worth of the Orogrande Basin assets, which is likely to be significantly lower than the billions or hundreds of millions often quoted.

Torchlight's Orogrande Project (Hudspeth County) acreage has no proved reserves and Hudspeth County has no reported production at last report. This highlights a lack of understanding about oil and gas assets and suggests that valuing Torchlight's acreage using prime Permian Basin acreage as a comparison is not entirely accurate.

Despite this, some social media platforms are reporting highly inflated expectations surrounding the merger. In reality, Metamaterial's stock has risen around 36% since the report, while Torchlight's stock has fallen around 38% over the same period. While Torchlight's price remains high compared to Metamaterial's, some of the gap has closed.

In conclusion, while there are many factors at play in this merger, it's clear that Torchlight's oil and gas properties will be a key consideration for investors. By understanding the value of these assets and comparing them to Metamaterial's shares, we can gain a better appreciation for the potential impact on share values. As the merger approaches, investors will likely be keeping a close eye on developments in this area.

Torchlight dividend update