The transaction, which is subject to final due diligence and the signing of a definitive agreement, calls for cash payments and a carry on four wells.
Torchlight and Hockley will accelerate the drilling program upon closing of the transaction and will drill two vertical wells and two horizontal wells in early 2012.
The companies will likely be targeting the Buda formation for completion, although there are several target formations, including the Austin Chalk, Eagle Ford, Buda, Georgetown and Olmos.
