Page 12 - NorthAmOil Week 01 2023

NorthAmOil NEWS IN BRIEF NorthAmOil

Lanigan continued: “The completion of diverse asset base and the strongest credit ENERGY TRANSITION
these transactions reflect significant steps profile in the Company’s history.”
in transforming Fluids Systems into a more TALOS ENERGY, December 27, 2022 MiQ 2022 highlights:
agile, capital-light business model, capable of
stronger free cash flow generation and returns PHX Minerals to sell establishing a foundation
moving forward. As we look ahead, we plan to
focus our energy on executing our disciplined additional legacy assets for sustained growth and
growth strategy, including the acceleration of
our growth in the utilities sector, while also PHX Minerals, announced today that it has momentum
continuing to return excess cash generation entered into two agreements with separate
to shareholders through additional share buyers to sell 257 non-operated legacy MiQ, the not-for-profit aiming to reduce
repurchases.” working interest wellbores in the Arkoma methane emissions from the oil and gas
NEWPARK RESOURCES, December 28, 2022 Basin and the Eagle Ford Play for total cash industry, announced today that it has
consideration of approximately $10.7mn. independently certified nearly 20% of US
Talos Energy successfully Each Agreement is subject to customary natural gas supply in its first year since
launching.
closing conditions and adjustments.
completes fall borrowing The buyers of the assets will also assume intensity of methane emissions during
The MiQ certified gas is graded on the
approximately $879,000 of aggregate asset
base redetermination with retirement obligations from the Company. production in order to create transparency.
Both transactions are expected to close by the
This transparency has differentiated the gas
maturity extension to 2027 end of January 2023. supply for the first time, meaning gas buyers
The Arkoma Basin sale consists of 151
can choose cleaner options, which is driving
Talos Energy today announced that its current non-operated legacy working interest pricing signals that incentivize the capital
borrowing base was reaffirmed at $1.1bn wellbores with a purchase price of inflows required to reduce emissions.
as part of its semi-annual redetermination approximately $5.1mn and $235,000 of The volume of MiQ certified gas is
process for the fall of 2022. assumed asset retirement obligations. The equivalent to 1,000 LNG cargoes worth of US
Effective upon closing of the previously Eagle Ford play sale consists of 106 non- natural gas and demonstrates the increased
announced acquisition of EnVen Energy, operated legacy working interest wellbores receptivity of producers, buyers, and utilities
which is expected by early February of with a purchase price of approximately towards certified natural gas, and an appetite
2023, the company’s borrowing base will be $5.6mn and $644,000 of assumed asset to move towards a market for gas that has
automatically increased to $1.5bn from the retirement obligations. been graded based on its emissions intensity.
current $1.1bn and bank commitments will PHX intends to use the proceeds from “2022 has been a phenomenal year of
increase to $965mn from the current $806mn, these divestitures to acquire additional growth for MiQ and independently certified
an increase of approximately 20%. Further, minerals with existing production and line- gas. From a standing start, we’re now
the maturity of the facility will be extended to of-sight development and to repay borrowings independently certifying nearly 20% of the
March of 2027 from the current November of under the company’s credit facility. US market on methane emissions, creating
2024. The Company will have more favourable On a pro forma basis, PHX will have 564 the pricing signals and market incentives
interest rate margins, an increased Letters remaining legacy working interest wellbores. needed to attract capital inflows to eliminate
of Credit sublimit, increased flexibility to Chad Stephens, president and CEO, this harmful greenhouse gas decades ahead of
grow its carbon capture and sequestration said: “These transactions are a continuation climate targets. The next phase of our strategy
(CCS) business and more favourable of our strategy to high-grade PHX’s asset is to rapidly increase trading liquidity in the
administrative terms. At closing of the EnVen base by divesting legacy working interest certified gas market by growing certification
acquisition, Talos’s liquidity is expected to be wellbores and reinvesting the proceeds in within the US, globally, and crucially,
approximately $1.0bn and the company will higher-margin minerals in our core areas of certifying LNG for the first time,” said Georges
have no debt maturities until 2026. focus. Once these transactions are completed, Tijbosch, CEO, MiQ.
Talos executive vice president and chief we will have divested approximately 75% In just 12 months, MiQ has certified the
financial officer Shane Young commented: of the wellbores in which PHX owned a facilities of ten producers – including BP,
“We are excited with the results of our working interest when I became CEO in late ExxonMobil, EQT and Repsol – against
redetermination process. The increased 2019. While the remaining working interest its robust standard. Producers engage with
commitments and extended maturity to position will represent less than 10% of our companies from MiQ’s ecosystem of over a
2027 expected upon closing of the EnVen production volumes and reserves, we will dozen accredited auditors and over twenty
acquisition demonstrate the strong support continue to strive to divest them at a fair price leading, innovative methane tech companies
of our lender group as we continue to grow in 2023. The mineral acquisitions funded to determine the grade. For example, in
our Upstream business, expand our CCS with the proceeds from these transactions will 2022, 15,000 square miles have been flown
portfolio and mature our key catalysts. We continue to drive increased royalty volumes for aerial surveys and 1400 wells monitored
are proud of our accomplishments in 2022 and cash flow in the upcoming quarters.” continuously.
and look forward to an exciting year ahead in PHX MINERALS, December 27, 2022 MIQ, January 04, 2023
2023. Upon closing of the EnVen acquisition
in early 2023, Talos will have a larger, more

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