PHX Minerals Inc. added to its mineral position in Oklahoma with a recent cash-and-stock acquisition in the SCOOP shale play valued at about $11.9 million.

Oklahoma City-based PHX Minerals said in an April 15 release it had agreed to acquire the mineral and royalty interests in southern Oklahoma from certain third parties. The majority of the acquired interests are focused within Continental Resources Inc.’s SpringBoard III project area located primarily in Stephens, Carter and Garvin counties, Okla., according to the release.

“This is an exceptional acquisition of mineral assets with excellent geology that fits well within our stated strategy to grow the company on an accretive basis,” Chad Stephens, president and CEO of PHX Minerals, said in a statement commenting on the transaction.

The acquisition comprises a total of approximately 2,698 net royalty acres with 20.3 Bcfe of estimated reserves. With current net production of 529 Mcfe/d, the deal includes 103 PDP gross wells, 17 gross wells in progress and an estimated 613 gross undrilled locations.

PHX said it will pay roughly $9.5 million in cash and $2.4 million in PHX common stock in exchange for the assets. The company intends to raise the cash portion of the purchase price through an underwritten public offering of common stock announced concurrently with the acquisition.

“These assets have compelling upside potential in a core area with active drilling programs by high quality and well capitalized operators,” Stephens added in his statement.

In addition to Continental, key operators include Marathon Oil Corp., Ovintiv Inc. and Camino Natural Resources LLC. Two rigs are currently running within 2.5 miles of the acquisition assets, the PHX Minerals release said.

PHX currently owns approximately 253,000 net mineral acres principally located in Oklahoma, Texas, North Dakota, New Mexico and Arkansas. The company, formerly Panhandle Oil and Gas, is targeting to proactively grow its mineral position in its core areas of focus as part of its strategy.

The board of directors of PHX unanimously approved the April 15 acquisition. The company said it expects the deal to close in late April. The effective date of the transaction is Nov. 1, 2020.

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