PHX Minerals (PHX) Acquires Haynesville Play Properties for $7.3M

PHX Minerals Inc. (NYSE: PHX) announced today that it has agreed to acquire in two separate transactions certain mineral and royalty interests totaling approximately 817 net royalty acres in East Texas and Louisiana targeting the Haynesville play (the "Acquisition") for aggregate consideration of $7,249,347 in cash and stock, subject to customary closing adjustments. The purchase price consists of $728,214 in cash and $6,521,133 in PHX common stock issued directly to the sellers of the assets. The shares to be issued are subject to a 120-day lockup period. The Board of Directors of PHX unanimously approved the Acquisition, which is subject to certain closing conditions and is expected to close by Sept. 30, 2021.

Chad Stephens, President and CEO, said, "The agreements we entered into today involve additional acquisitions of exceptional mineral assets targeting the Haynesville play, where we have been active over the last 12 months. These assets will provide the company increasing cash flow and natural gas volumes in the near-term with compelling upside potential and are located under some of the top operators with active drilling programs in the play."

Acquisition Highlights

• Approximately 817 net royalty acres in East Texas and Louisiana (primarily in Harrison and Nacogdoches counties in Texas and De Soto, Caddo, Bossier and Sabine parishes in Louisiana), focused on the Haynesville and Bossier plays;
• Includes 46 PDP gross wells, 15 gross wells in progress and an estimated 149 gross undrilled locations;
• Two drilling rigs currently running on the Acquisition assets and an additional 10 drilling rigs within 2.5 miles of the Acquisition assets;1
• Estimated reserves of 8.5 Bcfe;2
• Current net production 0.062 Mmcfe/d; 3 and
• Key operators of the Acquisition assets include Chesapeake/Vine, Comstock, Goodrich and Southwestern/Indigo

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