OKLAHOMA CITY, Dec. 9, 2021 /PRNewswire/ -- PHX Minerals
Inc. (NYSE: PHX) ("PHX" or the "Company") today announced that it
has entered into an amendment to its revolving Credit Facility
("Credit Facility") under which the borrowing base of the Credit
Facility has been increased from $27.5
million to $32.0 million in
connection with its regularly scheduled semi-annual
redetermination. Additionally, PHX has entered into purchase and
sale agreements to acquire 426 total net royalty acres in
Caddo Parish, La., for
$5,787,272 in cash from two private
sellers, subject to customary closing adjustments (the
"Acquisition"). The Acquisition will be funded with a combination
of cash on hand and borrowings under the Company's Credit Facility.
Pro forma the Acquisition, the Company's total debt drawn on the
Credit Facility will be approximately $20.0
million. The Board of Directors of PHX unanimously
approved the Acquisition, which is expected to close by
Dec. 15, 2021.
Chad Stephens, President and CEO,
said, "the Acquisition assets provide almost immediate cash flow
from the wells being completed and do a nice job of helping replace
the volumes associated with the previously announced divestiture of
some of our legacy working interest wellbores. The increase in the
borrowing base of our Credit Facility is a reflection of a much
stronger PHX with an improving asset base and high-quality
prospects."
Acquisitions Highlights
- Approximately 426 net royalty acres in Caddo Parish, La., focused on the Hayneville
play;
- Assets are operated by Blue Dome and include 4 PDP gross wells,
4 gross wells in progress which are expected to come online in the
next 30 days and an estimated 4 gross undrilled locations;
- Estimated reserves of 3.8 Bcfe1;
- Current net production 0.15 Mmcfe/d2; and
- Estimated net production for 2022 totaling between 1,700 to
2,100 Mcfe/d, comprised of 100% natural gas.
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|
1 As
of 11/01/2021
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2 Mmcfe/d is on a 6:1 basis;
estimated November 2021 production
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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 251,000
net mineral acres principally located in Oklahoma, Texas, Louisiana, North
Dakota, and Arkansas. Additional information on the
Company can be found at www.phxmin.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such as
"anticipates," "plans," "estimates," "believes," "expects,"
"intends," "will," "should," "may" and similar expressions may be
used to identify forward-looking statements. Forward-looking
statements are not statements of historical fact and reflect PHX's
current views about future events. Forward-looking statements may
include, but are not limited to, statements relating to: PHX's
ability to execute its business strategies; the volatility of
realized natural gas and oil prices; the level of production on its
properties; estimates of quantities of natural gas, oil and NGL
reserves and their values; general economic or industry conditions;
legislation or regulatory requirements; conditions of the
securities markets; the ability to raise capital; changes in
accounting principles, policies or guidelines; financial or
political instability; acts of war or terrorism; title defects in
the properties in which PHX invests; and other economic,
competitive, governmental, regulatory or technical factors
affecting our properties, operations or prices. Although the
Company believes its expectations reflected in these and other
forward-looking statements are reasonable, the Company can give no
assurance its expectations will prove to be correct. Such
forward-looking statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
the Company. These forward-looking statements involve certain risks
and uncertainties that could cause the results to differ materially
from those expected by the Company's management. Information
concerning these risks and other factors can be found in the
Company's filings with the Securities and Exchange Commission,
including its Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q, available on the Company's website or the SEC's website
at www.sec.gov.
Investors are cautioned that any such forward-looking statements
are not guarantees of future performance and that actual results or
developments may differ materially from those projected in
forward-looking statements. The forward-looking statements in this
press release are made as of the date hereof, and the Company does
not undertake any obligation to update the forward-looking
statements as a result of new information, future events or
otherwise.
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SOURCE PHX MINERALS INC.