Upstream Activities
Torch Energy Advisors Incorporated (“TEAI”) is engaged in all facets of the upstream energy business. Over the years, TEAI and affiliates have acquired, developed, managed and operated interests in over 8,000 wells both onshore and offshore in the United States. In addition, TEAI, through subsidiaries and affiliates, has managed oil and gas properties in Canada, Central America, South America, Europe and Africa. TEAI continues to seek out attractive upstream investment opportunities, including pure exploration plays, complex secondary and tertiary exploitation challenges and opportunities to provide the operations, accounting and administrative services required to fully realize the value of energy assets. TEAI typically conducts activities through subsidiaries or affiliates, and often in conjunction with partners.
Exploitation & Production
TEAI’s primary upstream vehicle is Resaca Exploitation, Inc. (“Resaca”). Resaca is an independent oil and gas development and production company based in Houston. The company’s activities currently focus on the exploiting its portfolio of long-life properties, which have high levels of original oil in place, by utilizing a variety of primary, secondary and tertiary recovery techniques. These properties are located in the Permian Basin of West Texas and Southeast New Mexico. Resaca’s primary suite of properties includes 171producing wells, 59 injection wells and 25 shut-in wells. The majority of Resaca’s wells are shallow – less than 4,000 feet deep - and produce from multiple producing horizons. In January of 2008, Haas Petroleum Engineering Services valued Resaca’s reserves. Utilizing NYMEX commodity price assumptions of $95.98 for oil and $7.48 for natural gas and discounting at 10%, Haas valued Resaca’s “2P” reserves at $423 million. Resaca routinely evaluates exploitation opportunities, including acquisitions, in the United States and elsewhere.
Resaca was formed in March of 2006 by TEAI and private investors as a limited partnership. TEAI sponsored Resaca’s conversion to a corporation and admission to the AIM Market to the London Stock Exchange in July of 2008 (See “RSX” and “RSOX”). Torch is Resaca’s largest shareholder and provides administrative and management services to the company. For additional information on Resaca, please see www.resacaexploitation.com or contact Dennis Hammond.
Exploration & Production
TEAI has two exciting exploration projects in the northwest Permian Basin. TEAI will invest directly in the program and is seeking co-investors. Interested parties should contact Keith Turner, VP Land or Tor Van Dyke, Manager – Corporate Development.
Operations
Through its affiliate, Torch Energy Services, Inc. (“TES”) (formerly Torch Operating Company), TEAI provides oil and gas operations services. TES currently operates approximately 50 wells for TEAI and subsidiaries. In addition, TES manages operations for Torch Midstream (see more on Torch Midstream). TES maintains offices in Tatum, Texas; McAlester, Oklahoma and Lake Charles, Louisiana. Contact Randy Ziebarth for more information.