THE CITY OF OKLAHOMA, December 1, 2021 / PRNewswire / – PHX Minerals Inc. (NYSE: PHX) (“PHX” or the “Company”) announced today that it has sold two asset lots totaling 193 non-legacy operational interest wells exploited located mainly in the Arkoma and Western shales Anadarko Shale plays Oklahoma to two undisclosed buyers for a total of approximately $ 2,500,000. The buyers of the assets will also assume approximately $ 500,000 the obligation related to the decommissioning of the Company’s fixed assets. These disposals of direct interests, as well as the Fayetteville PHX drilling wells sold last month, generated net proceeds of approximately $ 4,625,000 and represent 692 gross legacy boreholes in total ceded and approximately $ 670,000 in the total obligation related to the decommissioning of fixed assets withdrawn from the Company’s balance sheet. On a pro forma basis, PHX still has 1,089 direct interest wells inherited.
In addition, PHX completed the acquisition of approximately 172 acres of net royalties located primarily in Carter and Stephens County, Oklahoma., for $ 1,376,416. This acquisition is mainly located in the same Springboard III zone of the SCOOP zone as the previously closed one of the Company. April 2021 acquisition of copyrights where the current drilling activity continues to accelerate. The new copyright acquisition, along with the cash acquisitions announced by the Company last month, represent a complete redeployment of the net proceeds received by the Company from direct interest transfers. These recent sales of direct stakes and royalty acquisitions should have a neutral effect on overall production in 2022.
Chad stephens, President and Chief Executive Officer, said: “These transactions are a continuation of our strategy to enhance PHX’s asset base by disposing of old direct interest wells and reinvesting the proceeds in higher margin minerals in our main focus areas. We have targeted the divestiture of our direct interest wellbore which represents the lowest percentile of direct interest wellbore in dollar value. As a result, we expect future divestitures to include fewer gross drill wells but higher net proceeds for PHX. In addition, our main areas of interest in which we acquire minerals are actively developed by reputable and well capitalized operators. As such, we expect royalty volumes to continue to increase as a percentage of total volume due to the development of acquired minerals in the coming quarters.
PHX Minerals Inc. (NYSE: PHX) Based in Oklahoma City, PHX Minerals Inc. is a natural gas and petroleum mining company with a strategy to proactively grow its mineral position in its core areas of operations. PHX owns approximately 251,000 net mineral acres primarily located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. Additional information about the Company is available at www.phxmin.com.
Caution 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 on future events. Forward-looking statements may include, without limitation, statements relating to: the ability of PHX to execute its business strategies; the volatility of realized prices for natural gas and petroleum; the level of production on its properties; estimates of the quantities of natural gas, petroleum and NGL reserves and their values; general economic or industrial conditions; legislation or regulatory requirements; the 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; defects in title to properties in which PHX invests; and other economic, competitive, government, regulatory or technical factors affecting our properties, operations or prices. Although the Company believes that its expectations reflected in these and other forward-looking statements are reasonable, the Company cannot guarantee that its expectations will prove to be correct. These 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 which could cause the results to differ materially from those expected by the management of the Company. Information regarding 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 at the company’s website or the SEC’s website at www. .sec.gov.
Investors are cautioned that these forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and the Company assumes no obligation to update any forward-looking statements as a result of new information, future events or otherwise.
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SOURCE MINERALS PHX INC.