very good! you see: you dont need a stencil buffer for that. also stenciled torch light would be slow and hard-edged. so a texture would do it much better...
you even managed the correct blending... i know that i didnt...
but i would try this instead

(this texture is from farCry)
you even managed the correct blending... i know that i didnt...
but i would try this instead

(this texture is from farCry)