PHX Minerals (PHX) has agreed to acquire from certain mineral and royalty interests totaling approximately 2,698 net royalty acres in the Southern SCOOP play
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PHX Minerals Inc. (NYSE: PHX) ("PHX" or the "Company") announced today that it has agreed to acquire from certain third parties certain mineral and royalty interests totaling approximately 2,698 net royalty acres in the Southern SCOOP play (the "Acquisition") for $11,947,000 in cash and stock, subject to customary closing adjustments. The purchase price consists of $9,547,000 in cash and $2,400,000 in PHX common stock. PHX intends to raise the cash portion of the purchase price through an underwritten public offering of common stock (announced concurrently with this release). The stock issued in connection with the Acquisition will be subject to the same terms and conditions as the other subscribers for the offering. The Board of Directors of PHX unanimously approved the Acquisition. The effective date of the Acquisition is Nov. 1, 2020, and it is expected to close in late April.
Chad Stephens, President and CEO, said, "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. These assets have compelling upside potential in a core area with active drilling programs by high quality and well capitalized operators."
- Approximately 2,698 net royalty acres in Southern SCOOP play, with the majority of the interests focused within Continental SpringBoard III area
- SpringBoard III AOI primarily in Stephens, Carter and Garvin Counties, Okla.
- Includes 103 PDP gross wells, 17 gross wells in progress and an estimated 613 gross undrilled locations
- Two rigs currently running within 2.5 miles of the Acquisition assets1
- Estimated reserves of 20.3 Bcfe2
- Current net production 0.529 Mmcfe/d3
- Key operators include Continental Resources, Marathon, Ovinitiv and Camino
PHX Minerals Inc. (NYSE: PHX) Oklahoma City-based, PHX Minerals Inc. is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core areas of focus. PHX owns approximately 253,000 net mineral acres principally located in Oklahoma, Texas, North Dakota, New Mexico and Arkansas. Additional information on the Company can be found at www.phxmin.com.
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