Verde Bio Holdings Announces Acquisition of Oil and Gas Working Interest
Provides Opportunity for Accretive Cash Flow and Increased Scale with Minimal Capital Investment
Represents Attractively Priced, Low Risk Entry into a High Growth Opportunity
FRISCO, TX, Aug. 04, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Verde Bio Holdings, Inc. (OTCQB: VBHI), a growing oil and gas company, today announced the acquisition of 2 oil and gas leases located in Jack County, Texas with existing wells and production facilities, located on and under its existing well service property.
The acquisition includes 2 wells capable of production with tremendous historical production of oil and natural gas. Recent geological studies of the wells have shown significant behind pipe possibilities for production and the company plans to re-enter and re-work the wells and bring them online for production which will be operated by the Company. The acquisition builds on Verde’s 2022 success and expands its progress to replicate the Company’s growth model with high margin, low-decline production that is geographically proximate to its existing assets.
“This is a transformational transaction for Verde establishing us as a dual-asset, full-cycle E&P Company with a significantly enhanced resource base and production profile. The transaction represents an attractively priced, low risk entry into a high growth opportunity which cements our position as an operator in the oil and gas markets of North Texas.” said Scott Cox, CEO of Verde.
The Acquisition includes 100% of the WI at an 80% NRI and all surface production equipment for a combined purchase price of $20,000.
- The acquisition is expected to deliver a transformational increase in Verde’s revenue as well as its reserves valuation, which will help to limit future write downs due to SEC required pricing which Verde believes is not an accurate value of its assets.
- Progresses Verde’s strategy of increasing scale and driving growth through a focus on aggregation of strategic acquisitions in the oil and gas sector.
- Transforms Verde into a multi-asset domestic oil and gas producer and represents a first step into asset diversification and towards a full-cycle portfolio with diversified oil and gas production and development.
Scott Cox continued, “With a compelling history of production, this acquisition represents another accretive, and complimentary acquisition that further demonstrates our status as a capable consolidator of low decline producing assets. We continue to use a multi-pronged approach to create value for our shareholders. Our core business as a consolidator of mineral and royalty interests, has allowed us to invest into meaningful growth opportunities such as this operated working interest. We are well on our way to meeting our goals for this year, and these developments are setting the stage for material growth in volumes and cash flow for 2023.”
“While the mineral and royalty acquisitions continue to be a core source of growth, we continue to find significant opportunities to grow our asset base through diversification. Anchored by infill drilling opportunities, high oil cuts, and existing ownership in the property, this bolt-on transaction fits perfectly with our strategy. This acquisition complements our existing portfolio of high-quality assets and provides additional scale from which we can derive operational synergies as we optimize asset performance. We are pleased to be nimble enough to acquire assets with material upside potential available and we are well positioned to capitalize on additional opportunities.”
About Verde Bio Holdings, Inc.
Verde Bio Holdings, Inc. (OTCQB: VBHI) is an Energy Company based in Frisco, Texas, engaged in the acquisition and management of Mineral and Royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the U.S. The Company’s dual-focused growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of revenue producing royalty interest and strategic and opportunistic non-operated working interests. www.verdebh.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2021 Annual Report on Form 10-K and quarterly reports on Form 10-Q.
Kirin Smith, President
PCG Advisory, Inc.
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