MECO IV Acquires Remaining Interest in the Winkler Project in Texas
Denver-based MECO IV LLC has entered into a letter agreement with wholly-owned subsidiaries of NASDAQ-listed Torchlight Energy Resources Inc. and McCabe Ventures LLC to acquire their rights, titles, and interests in the Winkler project located in Texas for US$450,000. Upon completion, MECO IV will hold a 100% operated interest in the project.
The total consideration includes US$350,000 payable to Torchlight and US$100,000 to McCabe Ventures. McCabe’s share of consideration shall be paid directly to Torchlight in exchange for the issuance of 313,480 shares of Torchlight common stock.
The Winkler project covers an area of 1,080 gross acres, and is located in the Delaware basin in Winkler County, Texas. The acreage is held by production and contains the Warwink prospect. Production from the prospect commenced in October 2018. The project contains six prospective benches or “stacked pay zones” where as many as 20 long laterals can be drilled, and is located at a hotspot for horizontal development activity and is offset by more than 13,000 successful wells.
Privately-held MECO IV is backed by funds managed by EIG Global Energy Partners LLC and is primarily engaged in the acquisition and development of oil and gas producing properties and undeveloped leaseholds in the U.S.
Plano, Texas-based Torchlight Energy Resources is focused on the acquisition and development of domestic oil fields in the United States, where it currently owns and operates assets in the Orogrande, Midland, and Delaware basins in West and Central Texas.
McCabe Ventures is a diversified business group owned and controlled by Mr. Gregory McCabe, the Chairman of Torchlight. The company is focused on oil & gas, real estate, and other capital investments in the United States.
The closing of the transaction is subject to the receipt of regulatory approval and the execution of necessary documents, and has an effective date of November 1st, 2020.