Verde Bio Holdings, a growing Texas oil and gas company, is to buy a portfolio of mineral and royalty interests held by a private seller for a purchase price of $1.1m in cash.
The interests to be acquired by Verde currently produce a combined revenue of approximately $24,000 per month and Verde is entitled to the cash flow from production attributable to the acquisition beginning on or after May 1, 2021.
The company continues to build a diversified, revenue producing portfolio of high-quality assets. Today’s announcement brings the total number of acquisitions to fifteen. Current expected combined revenue from these acquisitions is approximately $82,000 per month or approximately $984,000 on an annualized basis once Verde is in pay status on all properties.
Scott Cox, CEO of Verde, said: “We are excited about adding to the interests already acquired through this acquisition. This is a great well-balanced portfolio of diversified interests, which is exactly what we look for as we build the company. This portfolio adds significant revenue to Verde as well as adding a high level of assets to our balance sheet.”
The portfolio includes 13 wells in the Denver-Julesburg Basin, nine wells in the Utica Shale and 13 wells in the Piceance Basin.
“Deals like this continue to confirm our business plan of acquiring diversified minerals and royalties and building a diversified portfolio while taking advantage of the historic buyer’s market in the industry currently,” said Cox.
“We remain focused on executing our business plan and creating long-term value for our shareholders. Through our balanced approach of capital raising and acquisitions, we have begun to build a dynamic company with significant revenue and assets and look forward to continuing to build on this through future strategic acquisitions.”
For more information visit: www.verdebh.com