March 17 -- Verde Bio Holdings, Inc., a growing oil and gas company, has entered into an agreement to acquire revenue producing natural gas interests in the prolific Haynesville Shale of Northern Louisiana, held by a private seller for a purchase price of $425,000 in cash.
This interest acquired by Verde currently produces approximately $10,000 per month in revenue. Verde is entitled to the cash flow from production associated with the acquisition beginning on or after February 1, 2023. The acquisition is set to close on or before April 15, 2023.
The interest being acquired covers approximately 1,200 gross acres in Desoto Parish, Louisiana, and is operated by E&P leader, Southwestern Energy. Currently, there are 8 wells producing natural gas from the Haynesville formation and a number of inactive wells, which will likely be reworked and brought online in the near future. There’s also an excellent outlook for more wells on the acreage given Southwestern’s aggressive drilling schedule and well performance in the immediate area of the acreage being acquired.
Scott Cox added, CEO of Verde, said, “We have great confidence in these assets, as well as the Haynesville and we look forward to jointly benefiting as they continue to operate and develop the resource. Southwestern is a highly reputable, active and well-funded operator and we are very pleased that this is one of their core areas. We have high expectations for this property and its future. With the LNG terminals coming online in Texas and Louisiana we are very bullish on natural gas and plan to add much more to our portfolio while commodity prices have dipped from recent highs.”