TRCH - Torchlight Energy Resources: Share Price Implies Overly High Valuation For Oil & Gas Assets

• Torchlight is combining with Metamaterial, with Torchlight shareholders getting 25% of the combined company equity.
• Torchlight's oil and gas assets are expected to be divested, with the proceeds going to current Torchlight shareholders.
• Sales agreements are in place for a couple of Torchlight's oil and gas assets, leaving its Orogrande Basin assets as the remaining valuation unknown.
• Torchlight and Metamaterial's current share prices suggest an implied value of $1,000 per net acre for the Orogrande Basin assets.
• This appears quite inflated due to the low value of non top-tier undeveloped (and in this case largely unproven) acreage in the current market environment.

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