EX-99.1

EX-99.1 16 mmat-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

April 28, 2022

Mr. Roger Wurtele

Torchlight Energy Resources, Inc.

5700 W. Plano Parkway #3600

Plano, TX 75093

Dear Mr. Wurtele,

At your request PeTech Enterprises, Inc. (“PEI”) has prepared an estimate of certain hydrocarbon reserves owned by Torchlight Energy Resources, Inc. (“TER”) in the State of Texas as of December 31, 2021. This evaluation was completed by April 28, 2022.

These estimates include only Proved and Producing reserves and were prepared following the United States Securities and Exchange Commission (“SEC”) guidelines rule 4-10 Regulation S-X for evaluating and reporting oil and gas reserves. Rule 4-10 defines reserves as “…those quantities of oil and gas, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for estimation.……..Reserves which can be produced through the application of improved recovery techniques…..Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12 months before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage,

or from existing wells where a relatively major expenditure is required for completion. A complete ruling is available on the SEC website.

Acceptable evaluation geological, engineering, and accounting (cost, taxes, etc.) practice principles were utilized to reach the results of this evaluation. Results were based on historical oil production information, geological maps, logs, and offsetting lease analogs. The evaluation is based on information provided by or through TER. Data such as production rates, lease operating costs, ownership interests, and projections for future activities were relied on to be true. In all cases, PEI has reviewed the data to ensure reasonable values, consistency, and dependability.

OPERATIONS

TEXAS

The Hazel project is located in Sterling and Tom Green counties, TX. The company drilled five wells of which the Flying “B” Ranch #3H and #4H are producing. Production is from the Wolfcamp formation. The properties are operated by Maverick Operating. The company drilled or converted a well to be used for saltwater disposal. The currently operating expenses reflect a substantial reduction from previous years as water is now disposed of on location and electric power is available. Initial gross oil production reached 8,319 bbl per month and 31,613 bbl per month of water. It is anticipated that the well has an ultimate oil recovery of 154 Mbbl. The Flying B well 4H had an initial production rate of 4,200 bbl of oil and has an ultimate oil recovery of 192 Mbbl.

PRODUCTS PRICE

PRODUCTS PRICE The twelve months unweighted average of the first day of the month prices for oil (WTI) was used in calculating the 2021 average price resulting in $63.04 per barrel.

Oil and gas price differentials were calculated from the actual prices realized and were utilized in this evaluation. The average oil and gas prices were held constant throughout the economic life of the leases

OPERATING EXPENSES and CAPITAL COSTS reoccurring lease operating expenses were provided by the company and accepted when they seemed reasonable for the type of operation and area. Lease operating expenses were held constant throughout the life of the reserve.

TAXES

Production and ad valorem taxes were based on the Texas regulatory rates.

Hedge values were not considered in this evaluation.

Note that oil and gas reserves, as well as gross and net revenues, are ESTIMATES that may change as additional production and other technical data become available or due to prices change. All estimates are subject to change due to the inherent uncertainty in the application of judgmental factors as well as the regulatory environment.

PEI did not physically visit the field, PEI accepted as true all ownership interests. PEI has not evaluated any potential environmental liability. PEI does not own an economic interest in any of the company’s assets.

As of December 31, 2021


	PROVED DEVELOPED PRODUCING			PROVED UNDEVELOPED
	OIL, Mbbl		GAS MMcf	OIL, Mbbl	GAS, MMcf
GROSS ULTIMATE RESERVES		346.3	NA	NA	NA
GROSS REMAINING RESERVES		253.1	NA	NA	NA
NET REMAINING RESERVES		151.9	NA	NA	NA

Values of the proved reserves in this report are expressed in terms of ESTIMATED future gross revenue, future net revenue, and present worth using a discount factor of 10%. Future gross revenue is the revenue that will accrue to the appraised interests from the production and sale of the estimated net reserves. Net revenue is the gross revenue less production and ad valorem taxes, operating expenses, and capital costs. Operating expenses include direct field expenses but exclude general administration costs. Federal income tax was not included in this analysis.

AS OF DECEMBER 31, 2021


	PROVED
	DEVELOPED		UNDEVELOPED
	PRODUCING
FUTURE GROSS INCOME, M$		9098.1	NA
PRODUCTION AND ADVALOREM TAX, M$		419.8	NA
OPERATING EXPENSES, M$		4361.8	NA
CAPITAL COST, M$		0	NA
FUTURE NET REVENUE, M$		4316.6	NA
PRESENT VALUE, DISC AT 10%, M$		2896.8	NA

This report is followed by detailed cash flow for each well, followed by production plots. Qualifications of the evaluator are also attached.


Submitted,

Amiel David, Ph.D., P.E. #50970

For PeTech Enterprises, Inc. Registration # F-15360

Date : 04/28/2022 1:04:40 PM

TORCHLIGHT ENERGY, INC

Reserve and Economic Projection

As of 12/31/2021

Custom Selection

Total


		------------ Estimated 8/8 Ths Production -----------						------------ Net Production -----------
Year	Wells	Oil ---- Mbbl ----		NGL ---- Mgal ----		Gas ----- MMcf-----		Oil ----- Mbbl -----		NGL ----- Mgal -----		Gas ----- MMcf -----		Oil - $/bbl -		NGL - $/gal -		Gas - $/Mcf -
2021	0		0.12		0.00		0.00		0.07		0.00		0.00		59.86		0.00		0.00
2022	2		32.86		0.00		0.00		19.71		0.00		0.00		59.88		0.00		0.00
2023	2		24.05		0.00		0.00		14.43		0.00		0.00		59.89		0.00		0.00
2024	2		19.94		0.00		0.00		11.97		0.00		0.00		59.89		0.00		0.00
2025	2		17.35		0.00		0.00		10.41		0.00		0.00		59.89		0.00		0.00
2026	2		15.59		0.00		0.00		9.35		0.00		0.00		59.89		0.00		0.00
2027	2		14.27		0.00		0.00		8.56		0.00		0.00		59.89		0.00		0.00
2028	2		13.28		0.00		0.00		7.97		0.00		0.00		59.89		0.00		0.00
2029	2		12.41		0.00		0.00		7.45		0.00		0.00		59.89		0.00		0.00
2030	2		11.72		0.00		0.00		7.03		0.00		0.00		59.89		0.00		0.00
2031	2		11.12		0.00		0.00		6.67		0.00		0.00		59.89		0.00		0.00
2032	2		10.59		0.00		0.00		6.36		0.00		0.00		59.89		0.00		0.00
2033	2		10.04		0.00		0.00		6.02		0.00		0.00		59.89		0.00		0.00
2034	2		9.53		0.00		0.00		5.72		0.00		0.00		59.89		0.00		0.00
2035	2		9.06		0.00		0.00		5.43		0.00		0.00		59.89		0.00		0.00
Sub-T			211.93		0.00		0.00		127.16		0.00		0.00		59.89		0.00		0.00
After			41.17		0.00		0.00		24.70		0.00		0.00		60.03		0.00		0.00
Total			253.10		0.00		0.00		151.86		0.00		0.00		59.91		0.00		0.00
Cum.			93.25		0.00		0.00
Ult.			346.34		0.00		0.00


	----------------------------------- Company Future Gross Revenue ----------------------------------										------- Prod & Adv Taxes -------				----- Revenue ----
Year	Oil		NGL		Gas		Other		Total		Prod Tax		Adv Tax		after Sev & Adv
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		4.41		0.00		0.00		0.00		4.41		0.20		0.00		4.20
2022		1,180.49		0.00		0.00		0.00		1,180.49		54.46		0.00		1,126.02
2023		864.20		0.00		0.00		0.00		864.20		39.87		0.00		824.33
2024		716.60		0.00		0.00		0.00		716.60		33.06		0.00		683.54
2025		623.30		0.00		0.00		0.00		623.30		28.76		0.00		594.55
2026		560.10		0.00		0.00		0.00		560.10		25.84		0.00		534.26
2027		512.94		0.00		0.00		0.00		512.94		23.66		0.00		489.28
2028		477.27		0.00		0.00		0.00		477.27		22.02		0.00		455.25
2029		445.99		0.00		0.00		0.00		445.99		20.58		0.00		425.42
2030		421.09		0.00		0.00		0.00		421.09		19.43		0.00		401.66
2031		399.63		0.00		0.00		0.00		399.63		18.44		0.00		381.19
2032		380.67		0.00		0.00		0.00		380.67		17.56		0.00		363.11
2033		360.64		0.00		0.00		0.00		360.64		16.64		0.00		344.00
2034		342.62		0.00		0.00		0.00		342.62		15.81		0.00		326.81
2035		325.50		0.00		0.00		0.00		325.50		15.02		0.00		310.48
Sub-T		7,615.45		0.00		0.00		0.00		7,615.45		351.34		0.00		7,264.10
After		1,482.69		0.00		0.00		0.00		1,482.69		68.40		0.00		1,414.28
Total		9,098.13		0.00		0.00		0.00		9,098.13		419.75		0.00		8,678.39


	----------------------------------- Deductions ----------------------------------								-------------------- Future Net Income Before Income Taxes -------------------
	Lease		Net		Trans.		Net		Undiscounted				Discounted Ann		Disc. Cum.
Year	Net Costs		Investments		Costs		Profits		Annual		Cumulative		@ 10.00%		Annual @ 10.00%
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		0.62		0.00		0.00		0.00		3.58		3.58		3.58		3.58
2022		230.40		0.00		0.00		0.00		895.62		889.21		857.36		860.94
2023		230.40		0.00		0.00		0.00		593.93		1,493.14		516.13		1,377.07
2024		230.40		0.00		0.00		0.00		453.14		1,946.28		357.74		1,734.82
2025		230.40		0.00		0.00		0.00		364.15		2,310.43		261.22		1,996.04
2026		230.40		0.00		0.00		0.00		303.86		2,614.28		198.13		2,194.16
2027		230.40		0.00		0.00		0.00		258.88		2,873.16		153.44		2,347.60
2028		230.40		0.00		0.00		0.00		224.85		3,098.01		121.14		2,468.75
2029		230.40		0.00		0.00		0.00		195.02		3,293.03		95.49		2,564.24
2030		230.40		0.00		0.00		0.00		171.26		3,464.29		76.24		2,640.48
2031		230.40		0.00		0.00		0.00		150.79		3,615.08		61.02		2,701.50
2032		230.40		0.00		0.00		0.00		132.71		3,747.79		48.83		2,750.33
2033		230.40		0.00		0.00		0.00		113.60		3,861.39		37.99		2,788.33
2034		230.40		0.00		0.00		0.00		96.41		3,957.80		29.32		2,817.64
2035		230.40		0.00		0.00		0.00		80.08		4,037.88		22.14		2,839.79
Sub-T		3,226.22		0.00		0.00		0.00		4,037.88		4,037.88		2,839.79		2,839.79
After		1,135.59		0.00		0.00		0.00		278.69		278.69		57.02		57.02
Total		4,361.81		0.00		0.00		0.00		4,316.58		4,316.58		2,896.81		2,896.81


Eco. Indicators
		Present Worth Profile (M$)
Return on Investment (disc) :	0.000	PW	5.00% :	3,451.35
Return on Investment (undisc) :	0.000	PW	8.00% :	3,092.24
Years to Payout :	0.00	PW	9.00% :	2,990.77
Internal Rate of Return (%):	0.00	PW	12.00% :	2,728.45
		PW	15.00% :	2,515.83
		PW	20.00% :	2,239.27


TRC Eco Detailed2.rpt	4

Date : 04/28/2022 1:04:40 PM

FLYING 'B' RANCH 3H - 3H

GARDEN CITY, S. Field, STERLING (TX) Co., TX

Operator : MAVERICK OPERATING, LLC

Reservoir : WOLFCAMP

TORCHLIGHT ENERGY, INC

Reserve and Economic Projection

As of 12/31/2021

Custom Selection

Proved Producing


		----------- Estimated 8/8 Ths Production -----------						---------------------- Net Production ----------------------
Year	Wells	Oil ---- Mbbl ----		NGL ---- Mgal ----		Gas ----- MMcf-----		Oil ----- Mbbl -----		NGL ----- Mgal -----		Gas ----- MMcf -----		Oil - $/bbl -		NGL - $/gal -		Gas - $/Mcf -
2021	0		0.06		0.00		0.00		0.03		0.00		0.00		59.64		0.00		0.00
2022	1		13.86		0.00		0.00		8.32		0.00		0.00		59.64		0.00		0.00
2023	1		9.90		0.00		0.00		5.94		0.00		0.00		59.64		0.00		0.00
2024	1		8.11		0.00		0.00		4.87		0.00		0.00		59.64		0.00		0.00
2025	1		7.02		0.00		0.00		4.21		0.00		0.00		59.64		0.00		0.00
2026	1		6.28		0.00		0.00		3.77		0.00		0.00		59.64		0.00		0.00
2027	1		5.74		0.00		0.00		3.44		0.00		0.00		59.64		0.00		0.00
2028	1		5.33		0.00		0.00		3.20		0.00		0.00		59.64		0.00		0.00
2029	1		4.97		0.00		0.00		2.98		0.00		0.00		59.64		0.00		0.00
2030	1		4.69		0.00		0.00		2.82		0.00		0.00		59.64		0.00		0.00
2031	1		4.45		0.00		0.00		2.67		0.00		0.00		59.64		0.00		0.00
2032	1		4.24		0.00		0.00		2.54		0.00		0.00		59.64		0.00		0.00
2033	1		4.02		0.00		0.00		2.41		0.00		0.00		59.64		0.00		0.00
2034	1		3.82		0.00		0.00		2.29		0.00		0.00		59.64		0.00		0.00
2035	1		3.63		0.00		0.00		2.18		0.00		0.00		59.64		0.00		0.00
Sub-T			86.11		0.00		0.00		51.67		0.00		0.00		59.64		0.00		0.00
After			3.17		0.00		0.00		1.90		0.00		0.00		59.64		0.00		0.00
Total			89.28		0.00		0.00		53.57		0.00		0.00		59.64		0.00		0.00
Cum.			64.89		0.00		0.00
Ult.			154.17		0.00		0.00


	----------------------------------- Company Future Gross Revenue ----------------------------------										------- Prod & Adv Taxes -------				----- Revenue ----
Year	Oil		NGL		Gas		Other		Total		Prod Tax		Adv Tax		after Sev & Adv
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		2.07		0.00		0.00		0.00		2.07		0.10		0.00		1.98
2022		496.05		0.00		0.00		0.00		496.05		22.89		0.00		473.16
2023		354.17		0.00		0.00		0.00		354.17		16.34		0.00		337.83
2024		290.32		0.00		0.00		0.00		290.32		13.39		0.00		276.93
2025		251.04		0.00		0.00		0.00		251.04		11.58		0.00		239.46
2026		224.78		0.00		0.00		0.00		224.78		10.37		0.00		214.41
2027		205.36		0.00		0.00		0.00		205.36		9.47		0.00		195.89
2028		190.75		0.00		0.00		0.00		190.75		8.80		0.00		181.95
2029		178.01		0.00		0.00		0.00		178.01		8.21		0.00		169.80
2030		167.90		0.00		0.00		0.00		167.90		7.75		0.00		160.15
2031		159.26		0.00		0.00		0.00		159.26		7.35		0.00		151.92
2032		151.71		0.00		0.00		0.00		151.71		7.00		0.00		144.71
2033		143.73		0.00		0.00		0.00		143.73		6.63		0.00		137.09
2034		136.54		0.00		0.00		0.00		136.54		6.30		0.00		130.24
2035		129.72		0.00		0.00		0.00		129.72		5.98		0.00		123.74
Sub-T		3,081.42		0.00		0.00		0.00		3,081.42		142.17		0.00		2,939.25
After		113.35		0.00		0.00		0.00		113.35		5.23		0.00		108.12
Total		3,194.77		0.00		0.00		0.00		3,194.77		147.39		0.00		3,047.37


	----------------------------------- Deductions ----------------------------------								-------------------- Future Net Income Before Income Taxes -------------------
	Lease		Net		Trans.		Net		Undiscounted				Discounted Ann		Disc. Cum.
Year	Net Costs		Investments		Costs		Profits		Annual		Cumulative		@ 10.00%		Annual @ 10.00%
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		0.31		0.00		0.00		0.00		1.67		1.67		1.67		1.67
2022		115.20		0.00		0.00		0.00		357.96		359.63		342.78		344.45
2023		115.20		0.00		0.00		0.00		222.63		582.26		193.54		537.99
2024		115.20		0.00		0.00		0.00		161.73		743.99		127.72		665.72
2025		115.20		0.00		0.00		0.00		124.26		868.25		89.16		754.88
2026		115.20		0.00		0.00		0.00		99.21		967.46		64.71		819.59
2027		115.20		0.00		0.00		0.00		80.69		1,048.14		47.84		867.42
2028		115.20		0.00		0.00		0.00		66.75		1,114.89		35.97		903.40
2029		115.20		0.00		0.00		0.00		54.60		1,169.49		26.74		930.14
2030		115.20		0.00		0.00		0.00		44.95		1,214.44		20.02		950.15
2031		115.20		0.00		0.00		0.00		36.72		1,251.16		14.86		965.02
2032		115.20		0.00		0.00		0.00		29.51		1,280.67		10.87		975.88
2033		115.20		0.00		0.00		0.00		21.89		1,302.56		7.33		983.21
2034		115.20		0.00		0.00		0.00		15.04		1,317.61		4.58		987.79
2035		115.20		0.00		0.00		0.00		8.54		1,326.15		2.37		990.16
Sub-T		1,613.11		0.00		0.00		0.00		1,326.15		1,326.15		990.16		990.16
After		105.60		0.00		0.00		0.00		2.52		2.52		0.64		0.64
Total		1,718.71		0.00		0.00		0.00		1,328.66		1,328.66		990.80		990.80

Eco. Indicators

Ownership Interests

Present Worth Profile (M$)

Return on Investment (disc) :

0.000

Initial

1st Rev.

2nd Rev.

5.00% :

1,131.93

Return on Investment (undisc) :

0.000

W.I. :

0.80000000

0.00000000

8.00% :

1,042.08

Years to Payout :

0.00

Net R. I. :

0.60000000

0.00000000

9.00% :

1,015.67

Internal Rate of Return (%):

0.00

Rev. Date :

12.00% :

945.17

15.00% :

885.50

20.00% :

804.29


TRC Eco Detailed2.rpt	5

Date : 04/28/2022 1:04:40 PM

FLYING 'B' RANCH 4H - 4 H

GARDEN CITY, S. Field, TOM GREEN Co., TX

Operator :

Reservoir : WOLFCAMP

TORCHLIGHT ENERGY, INC

Reserve and Economic Projection

As of 12/31/2021

Custom Selection

Proved Producing


		------------ Estimated 8/8 Ths Production -----------						------------ Net Production -----------
Year	Wells	Oil ---- Mbbl -----		NGL ---- Mgal ----		Gas ----- MMcf-----		Oil ----- Mbbl -----		NGL ----- Mgal -----		Gas ----- MMcf -----		Oil - $/bbl -		NGL - $/gal -		Gas - $/Mcf -
2021	0		0.06		0.00		0.00		0.04		0.00		0.00		60.06		0.00		0.00
2022	1		18.99		0.00		0.00		11.40		0.00		0.00		60.06		0.00		0.00
2023	1		14.15		0.00		0.00		8.49		0.00		0.00		60.06		0.00		0.00
2024	1		11.83		0.00		0.00		7.10		0.00		0.00		60.06		0.00		0.00
2025	1		10.33		0.00		0.00		6.20		0.00		0.00		60.06		0.00		0.00
2026	1		9.31		0.00		0.00		5.58		0.00		0.00		60.06		0.00		0.00
2027	1		8.54		0.00		0.00		5.12		0.00		0.00		60.06		0.00		0.00
2028	1		7.95		0.00		0.00		4.77		0.00		0.00		60.06		0.00		0.00
2029	1		7.44		0.00		0.00		4.46		0.00		0.00		60.06		0.00		0.00
2030	1		7.03		0.00		0.00		4.22		0.00		0.00		60.06		0.00		0.00
2031	1		6.67		0.00		0.00		4.00		0.00		0.00		60.06		0.00		0.00
2032	1		6.35		0.00		0.00		3.81		0.00		0.00		60.06		0.00		0.00
2033	1		6.02		0.00		0.00		3.61		0.00		0.00		60.06		0.00		0.00
2034	1		5.72		0.00		0.00		3.43		0.00		0.00		60.06		0.00		0.00
2035	1		5.43		0.00		0.00		3.26		0.00		0.00		60.06		0.00		0.00
Sub-T			125.82		0.00		0.00		75.49		0.00		0.00		60.06		0.00		0.00
After			38.00		0.00		0.00		22.80		0.00		0.00		60.06		0.00		0.00
Total			163.82		0.00		0.00		98.29		0.00		0.00		60.06		0.00		0.00
Cum.			28.36		0.00		0.00
Ult.			192.18		0.00		0.00


	----------------------------------- Company Future Gross Revenue ----------------------------------										------- Prod & Adv Taxes -------				----- Revenue ----
Year	Oil		NGL		Gas		Other		Total		Prod Tax		Adv Tax		after Sev & Adv
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		2.33		0.00		0.00		0.00		2.33		0.11		0.00		2.23
2022		684.44		0.00		0.00		0.00		684.44		31.58		0.00		652.86
2023		510.03		0.00		0.00		0.00		510.03		23.53		0.00		486.50
2024		426.28		0.00		0.00		0.00		426.28		19.67		0.00		406.61
2025		372.26		0.00		0.00		0.00		372.26		17.17		0.00		355.08
2026		335.32		0.00		0.00		0.00		335.32		15.47		0.00		319.85
2027		307.58		0.00		0.00		0.00		307.58		14.19		0.00		293.39
2028		286.52		0.00		0.00		0.00		286.52		13.22		0.00		273.31
2029		267.98		0.00		0.00		0.00		267.98		12.36		0.00		255.62
2030		253.19		0.00		0.00		0.00		253.19		11.68		0.00		241.51
2031		240.36		0.00		0.00		0.00		240.36		11.09		0.00		229.27
2032		228.96		0.00		0.00		0.00		228.96		10.56		0.00		218.40
2033		216.91		0.00		0.00		0.00		216.91		10.01		0.00		206.90
2034		206.07		0.00		0.00		0.00		206.07		9.51		0.00		196.57
2035		195.78		0.00		0.00		0.00		195.78		9.03		0.00		186.74
Sub-T		4,534.03		0.00		0.00		0.00		4,534.03		209.18		0.00		4,324.85
After		1,369.34		0.00		0.00		0.00		1,369.34		63.17		0.00		1,306.16
Total		5,903.37		0.00		0.00		0.00		5,903.37		272.35		0.00		5,631.01


	----------------------------------- Deductions ----------------------------------								-------------------- Future Net Income Before Income Taxes -------------------
	Lease		Net		Trans.		Net		Undiscounted				Discounted Ann		Disc. Cum.
Year	Net Costs		Investments		Costs		Profits		Annual		Cumulative		@ 10.00%		Annual @ 10.00%
	------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------		------ M$ ------
2021		0.31		0.00		0.00		0.00		1.92		1.92		1.92		1.92
2022		115.20		0.00		0.00		0.00		537.66		539.58		514.58		516.49
2023		115.20		0.00		0.00		0.00		371.30		910.88		322.58		839.08
2024		115.20		0.00		0.00		0.00		291.41		1,202.29		230.02		1,069.10
2025		115.20		0.00		0.00		0.00		239.88		1,442.18		172.06		1,241.16
2026		115.20		0.00		0.00		0.00		204.65		1,646.82		133.42		1,374.58
2027		115.20		0.00		0.00		0.00		178.19		1,825.02		105.60		1,480.18
2028		115.20		0.00		0.00		0.00		158.11		1,983.12		85.17		1,565.35
2029		115.20		0.00		0.00		0.00		140.42		2,123.54		68.75		1,634.10
2030		115.20		0.00		0.00		0.00		126.31		2,249.85		56.22		1,690.32
2031		115.20		0.00		0.00		0.00		114.07		2,363.92		46.16		1,736.48
2032		115.20		0.00		0.00		0.00		103.20		2,467.12		37.97		1,774.45
2033		115.20		0.00		0.00		0.00		91.70		2,558.83		30.67		1,805.12
2034		115.20		0.00		0.00		0.00		81.37		2,640.20		24.74		1,829.85
2035		115.20		0.00		0.00		0.00		71.54		2,711.74		19.78		1,849.63
Sub-T		1,613.11		0.00		0.00		0.00		2,711.74		2,711.74		1,849.63		1,849.63
After		1,029.99		0.00		0.00		0.00		276.18		276.18		56.38		56.38
Total		2,643.10		0.00		0.00		0.00		2,987.92		2,987.92		1,906.01		1,906.01

Eco. Indicators

Ownership Interests

Present Worth Profile (M$)

Return on Investment (disc) :

0.000

Initial

1st Rev.

2nd Rev.

5.00% :

2,319.42

Return on Investment (undisc) :

0.000

W. I. :

0.80000000

0.00000000

8.00% :

2,050.16

Years to Payout :

0.00

Net R. I. :

0.60000000

0.00000000

9.00% :

1,975.10

Internal Rate of Return (%):

0.00

Rev. Date :

12.00% :

1,783.28

15.00% :

1,630.33

20.00% :

1,434.98


TRC Eco Detailed2.rpt	6

4/28/2022 1:06:44PM

Project Name :

Ownership Group:

TORCHLIGHT ENERGY, INC.

All Cases

Economic One-Liners

As of Date: 12/31/2021


		Net Reserves				Net Revenue										Cash Flow
		Oil, Cond,				Oil, Cond,						Expense
Lease Name	Reserve Category	NGL *		Gas		NGL *		Gas		Other		& Tax		Invest.		Non-Disc.		Disc. CF		Life
Risked / UnRisked		(Mbbl)		(MMcf)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(years)
FLYING 'B' RANCH 3H - 3H	P-DP		53.57		0.00		3,194.77		0.00		0.00		1,866.10		0.00		1,328.66		990.80		14.92
Grand Total	Total		98.29		0.00		5,903.37		0.00		0.00		2,915.45		0.00		2,987.92		1,906.01		22.94
FLYING 'B' RANCH 4H - 4 H	P-DP		98.29		0.00		5,903.37		0.00		0.00		2,915.45		0.00		2,987.92		1,906.01		22.94


TRC Eco One Liner 2.rpt		* Assumes Oil, Condensate and NGL are all using the same units.		1

Case Name: FLYING 'B' RANCH 3H Field: GARDEN CITY, S. County,State: STERLING (TX),TX Oper: MAVERICK OPERATING, LLC Disc Value: 990.80 M$ 10 100 1000101001000 100 1000 10000.1110 Gas (Mcf/mon) Oil (bbl/mon) Water (bbl/mon) Water Cut (%) 17 21 25 29 33 37 41 45 49 53 57 61 65

Case Name: FLYING 'B' RANCH 4H Oper: Field: GARDEN CITY, S. County,State: TOM GREEN,TX Disc Value: 1,906.01 M$ 10 100 1000101001000 1000 10000 100000.1110 Gas (Mcf/mon) Oil (bbl/mon) Water (bbl/mon) Water Cut (%) 17 21 25 29 33 37 41 45 49 53 57 61 65

Appraiser Qualifications

Amiel David Amiel David is a Registered Petroleum Engineer in the State of Texas, having a license # 50970. Amiel is the owner of PeTech Enterprises, Inc having a Firm Registration number F-15360. Amiel has been practicing petroleum engineering since his college graduation and as a Professional Registered Engineer since 1982. His consulting practice covers all major basins in the US and Canada. He also performed evaluation on assets outside North America. Amiel graduated from the U of Tulsa with a BS in Petroleum Engineering, from the U of Pennsylvania with a MSE in Chemical Engineering, from Stanford U with a PhD in Petroleum Engineering and an MBA from the U of Pittsburgh. Amiel is a member of the Society of Petroleum Engineers and The Society of Petroleum Evaluation Engineers. He has authored over twenty papers on subjects related to his profession.