PHX Minerals Inc. continues to grow its Haynesville footprint with the announcement on April 25 of another mineral and royalty acquisition targeting the play in Louisiana.
The acquisition is in addition to PHX’s $5.1 million acquisition in the Haynesville announced on April 19, and will also be funded with a combination of cash on hand and borrowings under its existing credit facility.
“The company continues to expand its presence in the Haynesville while preserving the strength of our balance sheet,” PHX Minerals said in an April 25 company release.
According to the release, PHX agreed to acquire approximately 477 net royalty acres located in three contiguous sections operated by Chesapeake Energy Corp. primarily in Caddo Parish, La., for aggregate consideration of $4.3 million in cash from a private seller. The transaction is expected to close May 13.
The acquisition includes three PDP gross wells, two gross DUCs and an additional estimated 10 gross undrilled locations with estimate net reserves of 3 Bcf. No drilling rigs currently running on the acquisition assets.
Estimated next 12 months net production totals between 350 to 450 Mcf/d, comprised of 100% natural gas. The averages 1.8% net royalty interest across three sections, providing impactful future cash flows, the company release added.
Formerly Panhandle Oil and Gas, PHX is targeting to proactively grow its mineral position in core areas of focus as part of the strategy to high-grade the company’s asset base.
“Since January 2020, our focus has been to pursue natural gas assets as we believe it is a key component to the energy transition,” Chad Stephens, president and CEO of PHX Minerals, commented in a company release on April 19.
At the time, PHX had acquired approximately 5,000 net royalty acres in the Haynesville deploying an estimated $40 million of capital while maintaining a strong balance sheet, according to Stephens.
“The Haynesville is a premier natural gas resource that is at the front door of U.S. LNG export terminals,” he continued. “This will prove to be a vital source in alleviating the energy crisis in Europe, which began well before and has only intensified since the invasion of Ukraine.”
PHX, based in Oklahoma City, currently owns approximately 251,000 net mineral acres principally located in Oklahoma, Texas, Louisiana, North Dakota and Arkansas, according to the April 25 release said.
Recommended Reading
Quantum Raises $10B for Oil, Gas, Midstream, Energy Transition
2024-10-29 - Quantum Capital Group raised $5.25 billion for its private equity flagship, Quantum Energy Partners VIII. A source told Hart Energy that most of the firm’s capital has gone into oil and gas because it offers the best risk-adjusted returns.
Energy Sector Sees Dramatic Increase in Private Equity Funding
2024-11-21 - In a 10-day period, private equity firms announced almost $20 billion in energy funding. Is an end in sight for the fossil fuel capital drought?
Geologist James Parr Joins Ring as EVP of Exploration, Geosciences
2024-11-26 - James Parr joins Ring Energy with over 30 years of experience as a petroleum geologist and leader in multiple energy organizations.
SM Energy Adds Petroleum Engineer Ashwin Venkatraman to Board
2024-12-04 - SM Energy Co. has appointed Ashwin Venkatraman to its board of directors as an independent director and member of the audit committee.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.