Page 11 - NorthAmOil Week 41 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

mix, and attractive capital investment acres located primarily in Caddo and DeSoto international market.
opportunities. We continue to seek out new Parishes, Louisiana, for $6,226,489. These “We plan to sell a total of four carbon-
investments to add to our portfolio.” acquisitions are predominately located in the compensated crude oil cargoes this year,”
Equity financing for the acquisition was led same focus area of the Haynesville Shale as the said Pedro Manrique, Ecopetrol commercial
by McArron Partners, alongside members of Company’s previously closed royalty acreage vice president, “and we hope to achieve this
management. Jonny Jones, CEO of McArron acquisitions where drilling activity continues goal by working closely with companies like
stated: “The current dislocation in the oil and to accelerate. The new royalty acreage CITGO and others who share our vision on
gas market creates an attractive entry point acquisitions represent a full redeployment of energy transition and decarbonisation. It is
for long-term investment opportunities. net proceeds received by the Company for the essential as an industry to contribute to the
The Benchmark team has a demonstrated working interest divestiture. goals that the world has set for climate change
track record of value creation across market Chad Stephens, president and CEO, said: mitigation.”
cycles, and we look forward to our continued “These transactions are a continuation of As part of the transaction, Ecopetrol
partnership.” our strategy to high grade PHX’s asset base has arranged for carbon offsets for both the
The company also announced it has by divesting legacy non-operated working emissions of the cargo itself, equivalent to
entered into a credit agreement with West interest wellbores and reinvesting the 16,000 tonnes of CO2e and, for the first time,
Texas National Bank of Midland, Texas, to proceeds in higher margin royalty minerals in the emissions associated with the maritime
provide additional funding for the transaction our core areas of focus. transportation of the crude to the CITGO
as well as potential future acquisitions. “Also, we anticipate the core focus areas terminal in the US Gulf Coast (USGC),
BENCHMARK ENERGY, October 13, 2022 in which we are acquiring minerals to be the estimated on 1.110 tonnes of CO2e. Both will
leading basins in US natural gas production be offset by carbon credits generated through
growth over the next several years. Reputable, a Verified Carbon Standard (VCS) certified
MOVES well-capitalised operators are actively natural climate solutions project located
developing these areas. As such, we expect in Colombia’s western region. The project
PHX Minerals announces royalty volumes to continue to increase from reduces deforestation and degradation of
forests, protects its biodiversity, and supports
the development of acquired minerals in
closing of previously future quarters, which will drive higher future local communities.
cash flows.”
“CITGO is pleased to participate in
announced working interest PHX MINERALS, October 12, 2022 this important initiative that protects the
environment and reduces greenhouse gas
divestiture and additional ENERGY TRANSITION emissions,” said Karl Schmidt, CITGO vice
president supply and marketing. “Purchasing
mineral acquisitions this cargo from Ecopetrol, a great partner
with a firm commitment to decarbonisation,
PHX Minerals today announced that it has Ecopetrol and CITGO inspires us to advance our efforts in this area.”
closed on the previously announced sale of all Transaction to offset carbon The carbon compensation for the
its remaining legacy non-operated working Ecopetrol/CITGO transaction offsets direct
interest wellbores in the Fayetteville Shale A carbon compensated crude oil cargo sold emissions generated along the crude oil value
play in Arkansas to an undisclosed buyer for a by Ecopetrol and purchased by CITGO chain, which includes production, dilution,
total of $6,050,000. This divestiture represents Petroleum is currently making its way to transportation into the Coveñas terminal
210 gross legacy wellbores and removes the CITGO Corpus Christi refinery for located on the Atlantic Coast of Colombia and
approximately $212,000 in asset retirement processing. The recent transaction supports maritime transportation to Corpus Christi,
obligation from the company’s balance Ecopetrol’s objectives on energy transition and Texas.
sheet. On a pro forma basis, PHX has 789 decarbonisation. The Ecopetrol Group plans to achieve net
gross legacy non-operated working interest The 500,000-barrel cargo of Ecopetrol zero carbon emissions for Scope 1 and 2 by
wellbores remaining. Castilla Blend® is the company’s flagship 2050.
Additionally, PHX completed the crude oil and one of the main references ECOPETROL, October 10, 2022
acquisition of approximately 575 net royalty of heavy crude in the region and the

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