VBHI on CRACK Verde Bio Holdings, Inc. Announce
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Posted On: 04/01/2021 9:48:37 AM
VBHI on CRACK
Verde Bio Holdings, Inc. Announces New Acquisition of Mineral and Royalty Interest
Press Release | 04/01/2021
--Acquisition Includes Revenue Producing Interests in the DJ Basin of Colorado--
FRISCO, TEXAS, April 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Verde Bio Holdings, Inc. (OTC: VBHI), an oil and gas investment company, today announced that it has closed on the acquisition of revenue producing mineral and royalty interests held by a private seller for a purchase price of $152,000 in cash. Verde is entitled to the cash flow from production attributable to the acquisition beginning on or after March 1, 2021. Current expected combined revenue from all the acquisitions to date is approximately $22,000 per month or more than $250,000 on an annualized basis.
The interest being acquired covers approximately 1600 acres across Weld County, Colorado and is operated by Denver, Colorado based Bonanza Creek Energy Inc., which has extensive experience in the Denver-Julesburg Basin. Currently there are nine wells, each approximately one year old, producing across the acreage from the Niobrara and Codell formations. With this large acreage position, there is tremendous upside potential for new wells to be drilled. The transaction represents Verde’s fourth acquisition in the prolific DJ Basin.
Verde has now closed eight mineral and royalty deals including the acquisition announced in this press release. Verde has revenue producing holdings in 15 counties in seven states. The current portfolio consists of 65% oil and 35% natural gas.
All assets acquired also provide Verde with the benefit of increases in commodities pricing. These assets were all bought on a basis of historically low pricing. With increasing oil and gas prices, it is possible that current revenue could also increase in the next couple of months.
Scott Cox, CEO of Verde, said, “We pride ourselves on creativity, flexibility, and reliability, and we are delighted to close this current transaction. This acquisition is located in the heart of the oil and gas-rich D-J Basin. The nine wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage. We have great confidence in Bonanza Creek and our DJ Basin assets and we look forward to jointly benefiting as they continue to operate and develop. This oil and gas rich area, which has produced both oil and gas since 1901, includes one of the largest gas deposits in the U.S. and extends into Wyoming, Nebraska and Kansas.
“This transaction continues to confirm and highlight our business plan of acquiring diversified mineral and royalty portfolios with the current downturn of oil and gas prices. 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 highly diversified portfolio of revenue producing interests and look forward to continuing to build on these through future strategic acquisitions,” Mr. Cox concluded.
Verde Bio Holdings, Inc. Announces New Acquisition of Mineral and Royalty Interest
Press Release | 04/01/2021
--Acquisition Includes Revenue Producing Interests in the DJ Basin of Colorado--
FRISCO, TEXAS, April 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Verde Bio Holdings, Inc. (OTC: VBHI), an oil and gas investment company, today announced that it has closed on the acquisition of revenue producing mineral and royalty interests held by a private seller for a purchase price of $152,000 in cash. Verde is entitled to the cash flow from production attributable to the acquisition beginning on or after March 1, 2021. Current expected combined revenue from all the acquisitions to date is approximately $22,000 per month or more than $250,000 on an annualized basis.
The interest being acquired covers approximately 1600 acres across Weld County, Colorado and is operated by Denver, Colorado based Bonanza Creek Energy Inc., which has extensive experience in the Denver-Julesburg Basin. Currently there are nine wells, each approximately one year old, producing across the acreage from the Niobrara and Codell formations. With this large acreage position, there is tremendous upside potential for new wells to be drilled. The transaction represents Verde’s fourth acquisition in the prolific DJ Basin.
Verde has now closed eight mineral and royalty deals including the acquisition announced in this press release. Verde has revenue producing holdings in 15 counties in seven states. The current portfolio consists of 65% oil and 35% natural gas.
All assets acquired also provide Verde with the benefit of increases in commodities pricing. These assets were all bought on a basis of historically low pricing. With increasing oil and gas prices, it is possible that current revenue could also increase in the next couple of months.
Scott Cox, CEO of Verde, said, “We pride ourselves on creativity, flexibility, and reliability, and we are delighted to close this current transaction. This acquisition is located in the heart of the oil and gas-rich D-J Basin. The nine wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage. We have great confidence in Bonanza Creek and our DJ Basin assets and we look forward to jointly benefiting as they continue to operate and develop. This oil and gas rich area, which has produced both oil and gas since 1901, includes one of the largest gas deposits in the U.S. and extends into Wyoming, Nebraska and Kansas.
“This transaction continues to confirm and highlight our business plan of acquiring diversified mineral and royalty portfolios with the current downturn of oil and gas prices. 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 highly diversified portfolio of revenue producing interests and look forward to continuing to build on these through future strategic acquisitions,” Mr. Cox concluded.
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