Verde Bio Holdings, Inc. Announces Acquisition in the Bakken Shale of North Dakota

Rhea-AI Summary

Verde Bio Holdings, Inc. (OTCQB: VBHI) announced its agreement to purchase mineral and royalty interests in the Bakken Shale, North Dakota, for $415,000. The acquisition includes rights to 21 producing wells, generating approximately $5,500 in monthly revenue. The deal aligns with Verde's strategy to diversify its revenue-producing assets. The purchase is expected to close by April 15, 2022, enhancing the company's portfolio and potential cash flow. CEO Scott Cox emphasized the importance of this acquisition for long-term shareholder value amidst favorable oil market conditions.

Positive

• Acquisition of mineral and royalty interests valued at $415,000.
• The interests include 21 currently producing wells, generating $5,500/month.
• Strategic addition to the portfolio strengthens revenue generation.
• Acquisition expected to close by April 15, 2022.

Negative

• Acquisition dependent on due diligence and price adjustments.
• Ongoing risks associated with fluctuating oil prices.

FRISCO, TX, March 24, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Verde Bio Holdings, Inc. (OTCQB: VBHI), (www.verdebh.com), a growing energy Company, today announced that it continues to execute on its business plan of acquiring a portfolio of revenue producing properties by agreeing to the purchase of mineral and royalty interests in the Bakken Shale of North Dakota, held by a private seller for a purchase price of $415,000 in cash, subject to price adjustments pending due diligence.
The interests to be acquired are located in the heart of the Bakken in McKenzie and Williams Counties, North Dakota, and are operated by Slawson Exploration, which has established itself as one of the premier operators in the Bakken Shale. The acquisition includes interest in 21 currently producing wells. Slawson currently has two rigs running in the area and is currently drilling another well on the interest being acquired. The interests currently produce combined 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 March 1, 2022. The acquisition is expected to close on or before April 15, 2022.
The Company continues to build a diversified, revenue producing portfolio of high-quality assets.
Scott Cox, Founder and CEO of Verde, said, “We are excited about adding these interests to our portfolio through this acquisition. We have been lacking a good Bakken asset in our portfolio and are pleased to have found this amazing property at a good price point and still have the upside of historically high oil prices and the continued development to come with the property. 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.”
“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 concluded. 

About Verde Bio Holdings, Inc.
Verde Bio Holdings, Inc. (OTCQB: VBHI), is a growing U.S. Energy Company based in Frisco, Texas, engaged in the acquisition and development of high-growth mineral rights and select non-operated working interests in premier U.S. basins. Verde currently owns producing mineral, royalty and over-riding royalty interests in the Denver-Julesburg Basin of Colorado and Wyoming, the Haynesville Shale of Louisiana, the Anadarko Basin of Oklahoma, the Delaware and Permian Basin of Texas and the Marcellus and Utica shales in West Virginia and Ohio. The Company is focused on providing strong shareholder returns through asset growth generated by our acquisitions of revenue producing assets.

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 2019 Annual Report on Form 10-K and quarterly reports on Form 10-Q.

Contact:
Paul Knopick E & E Communications
pknopick@eandecommunications.com
949.697.1323

FAQ

What is the value of Verde Bio Holdings' acquisition in the Bakken Shale?

The acquisition is valued at $415,000.

When is the expected closing date for the acquisition by Verde Bio Holdings?

The acquisition is expected to close by April 15, 2022.

How much revenue do the acquired interests generate monthly for VBHI?

The acquired interests generate approximately $5,500 in monthly revenue.

What strategic benefits does the Bakken acquisition provide to VBHI?

The acquisition strengthens Verde's portfolio of revenue-producing assets.

Who is the operator of the wells Verde Bio Holdings is acquiring?

The wells are operated by Slawson Exploration.