Verde Bio Holdings, Inc. with revenue producing mineral and royalty interests in more than 400 wells across the most active areas in the U.S., announced that it has acquired mineral and royalty interests held by a private seller for a purchase price of $325,000 in cash. The interests are in Howard County, Texas, and are operated by Ovintiv, Inc. f/k/a Encana, which holds a significant acreage in the region.
“We continue to execute on our business plan of acquiring a portfolio of diversified, revenue producing, high-quality assets,” said Scott Cox, Verde Bio Holdings Founder and CEO.
Ovintiv’s primary focus is on the development of the Spraberry and Wolfcamp formations in the Midland Basin, where Ovintiv holds a large position and is a leader in cycle times and water management operational practices. Ovintiv currently has three rigs running in the area. The acquired interests, six wells, currently produce revenue of approximately $5,500 per month and Verde is entitled to the cash flow from production attributable to the acquisition beginning on or after January 1, 2022.
“With oil hovering around $90/barrel and the strong level of activity in the Permian Basin, we are particularly excited about this acquisition and adding to our existing portfolio of great assets in the Permian Basin. We are proud to have built a Company which is creative and flexible enough to take advantage of these deals as they come to market,” Mr. Cox said.
“Deals like this continue to highlight our business plan of acquiring minerals and royalties and building a diversified, revenue producing portfolio. 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 are building a dynamic Company with significant revenue and assets and look forward to continuing to build on this through future strategic acquisitions,” Mr. Cox said.