Verde Bio Holdings Provides First Quarter Company Update

FRISCO, TX, Sept. 15, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Verde Bio Holdings, Inc. (OTCQB: VBHI), a growing oil and gas company, today released its shareholder update for the first quarter, as well as its 10-Q Ranking with highlights from the quarter and what to expect for the future.

The Company remains very bullish on oil and gas and future growth and acquisition opportunities. Verde has built an excellent portfolio, and as commodity prices continue to rise, its revenues are also growing on a relative basis, with no increase in cost to Verde.

Commenting on the results, CEO Scott Cox said:

“I am pleased to report another quarter of consistent execution of our growth initiatives, driven by the strategic expansion of our low-risk, long-lived, low-decline asset acquisition model into additional purchases. These transactions continue to increase our scale and improve our portfolios. Going forward, we are focused on growing our portfolio and revenue as well as overall profitability. Our differentiated, value-driven business model continues to deliver outstanding results and as the company transitions into a more traditional E&P company that holds a significant revenue-generating royalty portfolio, we are very excited about the future. ‘coming.

First Quarter Highlights

The company remains focused on consistently executing its business model and is pleased to share some highlights below:

  • Total reserves as of 7/31/2022 increased significantly to $3.2 million PV-10 value based on SEC required prices at $88.54/bbl of oil and $5.36 /MMBTU/ natural gas.
  • Total adjusted revenue of up to $209,910, compared to royalty revenue of $64,599 for the three months ended July 31, 2021, net of taxes and other costs for our properties. We had delays in revenue from some of our major properties due to fires and weather conditions that required wells and pipelines to shut down for a few weeks and then slowly come back online. Additionally, as part of revenue generated from oil and gas properties, the Company recorded a depletion charge of $145,121 during the quarter ended July 31, 2022, compared to a depletion charge of $21,989 during the period ended July 31, 2021, which represents the proportionate use of units produced at the properties against proven and probable reserves. The overall increase in depletion charges reflects the overall increase in investment in royalty properties.

Portfolio Highlights and Acquisition Activity:

To date, we have completed over 18 acquisitions of income-generating properties and, as we recently announced, we have completed our first directly operated acquisition. Our current royalty portfolio consists of the following:

Revenue generating royalty interest in over 400 wells under operators such as SWN Energy, EOG, Civitas, Ovintiv, Aethon, Ascent, Chesapeake, Petro Operating and others.

Breakdown of the portfolio by State and basin:

  • Texas 35% in Permian/Delaware Basin and Eagleford Shale
  • Colorado 29% in DJ Basin and Piceance Basin
  • Louisiana 19% in the Haynesville shales
  • OH, WV, WY and OK 19% in Utica and Marcellus Shale, Powder River Basin and Anadarko Basin

We continue to have a healthy pipeline of new deal flow and are evaluating potential acquisitions that complement our portfolio, as well as seeking opportunistic divestitures where we can realize significant profits, while actively managing the portfolio to ensure that we maximize revenue based on current commodity environments. Active management also includes seeking to divest poorly performing assets in order to free up the necessary cash to reinvest in better performing assets with higher growth potential.

Operational Highlights:

The Company continues to incur significant one-time expenses related to the company’s growth in legal, accounting and advisory fees in transaction analysis and financing. We have still not reached a point of profitability, however, we are very excited about the current year and the high levels of cash flow we are able to project as well as acquisition and growth opportunities. divestment in current markets which we hope will soon bring us to profitability.

The company remains focused on growth and we are looking to expand our portfolio and also acquire additional strategic operating and non-operated working interests in stable, low-risk areas. This allows for significant revenue, tax advantages for the company, and the ability to book significantly higher reserves, which contributes to the SEC pricing delta we have in depreciating our accounting. The Company recently announced the acquisition of 2 leases and 2 oil and gas wells for which the Company is currently evaluating the best plan to rework the wells and return them to production.

Company Highlights:

On a corporate note, we are currently working on renaming plans to better define the company as an oil and gas company. We also plan to add at least 2 board members in the near future.

We continue to target listing on the NASDAQ or NYSE American Exchange as soon as possible and believe we meet the majority of the requirements for each of these exchanges at this time. Alongside these transformation plans to transition to National Exchange, we will also seek to work with energy funds and bankers to establish a credit facility to facilitate larger acquisitions which we believe have the power to transform our balance sheet from considerable way.

Additionally, as previously mentioned, we continue to work with our IR/PR and Marketing teams to increase market awareness and attract new long-term growth investors who believe in a business built on fundamentals.

In summary, we remain focused on execution and invest prudently in our continued growth, with a focus on building a dynamic and profitable business and focusing on delivering exceptional results for all shareholders.

About Verde Bio Holdings, Inc.

Verde Bio Holdings, Inc. (OTCQB: VBHI) is a Frisco, Texas-based energy company engaged in the acquisition and management of mineral and royalty interests in low-risk onshore oil and gas properties in major oil and gas plays in the United States The company’s dual-purpose growth strategy relies primarily on management’s expertise to grow through the strategic acquisition of revenue-producing royalty interests and strategic, opportunistic working interests not exploited.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934. as amended. These statements involve a high degree of risk and uncertainty, are only predictions, and actual events or results may differ materially from those projected in these forward-looking statements. Factors that could cause or contribute to the differences include uncertainty as to the viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely , changes in third-party relationships, the range of products sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2021 Annual Report on Form 10-K and its quarterly reports on Form 10-Q.

Kirin Smith, President
PCG Advisory, Inc.

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