Page 11 - NorthAmOil Week 16 2021

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UPSTREAM on the acquisition of revenue producing of these deals when they become available.”
mineral and royalty interests in the prolific Mr. Cox added: “We have great confidence in
SandRidge Energy Permian Basin of Texas, held by a private these assets, as well as the Permian Basin and
seller for a purchase price of $430,000 in
we look forward to jointly benefiting as they
announces acquisition of cash. The interest acquired by Verde currently continue to operate and develop the resource.
produces approximately $7,000 per month
Ovintiv is an excellent operator and we love
overriding royalty interests in revenue and Verde is entitled to the cash that this is one of their core areas. We have
high hopes for this property and its future.”
flow from production attributable to the
SandRidge Energy today announced the acquisition beginning on or after April 1, VERDE BIO HOLDINGS, April 21, 2021
acquisition of all the overriding royalty 2021.
interest assets of SandRidge Mississippian As mentioned in our previous press
Trust I. The gross purchase price is $4.85mn releases, the company continues to build a MIDSTREAM
(net $3.55mn, given the company’s 26.9% diversified, revenue producing portfolio of
ownership of the trust). At the current strip high-quality assets. Today’s announcement Magellan Midstream
and based on historical production trends, the brings the total number of acquisitions to
Company believes the Acquisition represents thirteen for Verde to date. Current expected announces sale of partial
an attractive price-to-value, approximating combined revenue from the acquisitions is
PDP PV-55 and a 2-year cash-on-cash approximately $51,000 per month or more interest in Pasadena marine
payback. than $610,000 on an annualised basis once the
Carl Giesler, president and CEO company is in pay status on all properties. terminal joint venture
commented, “Buying in the ORRIs from SDT The interest being acquired covers
will add to our PDP reserves and improve approximately 45 royalty acres and Magellan Midstream Partners announced
our netbacks and cash flow in wells that approximately 1,920 total gross acres in today the sale of nearly half of its membership
we already operate for the most part. This Howard County, Texas and is operated by interest in its Pasadena marine terminal
Acquisition is a good example of the relatively E&P leader, Ovintiv, formerly known as joint venture, MVP Terminalling, LLC, to an
low-capital, high-return, quick-payback, Encana. Ovintiv has a large position in the undisclosed financial buyer for $270mn. The
‘small-ball’ investments that the Board Permian, specifically in the prolific, oil-rich sale closed on April 19. Magellan now owns
and management are making to increase Midland Basin in Texas where their primary approximately 25% of MVP Terminalling and
shareholder value realisation from its asset focus is on the development of the Spraberry remains the operator of the facility.
base.” and Wolfcamp formations. Currently, there MVP Terminalling owns a refined
SANDRIDGE ENERGY, April 22, 2021 are six wells producing in the acreage being petroleum products marine storage terminal
acquired with an excellent outlook for more along the Houston Ship Channel in Pasadena,
Verde Bio Holdings wells on the acreage given Ovintiv’s capex Texas. The terminal currently includes over
plans with operating three drilling rigs and
fivemn barrels of storage, two ship docks and
announces acquisition of two completion crews currently in the area. truck loading facilities, with space to nearly
double its current capacity.
Scott Cox, CEO of Verde, said: “We are
Permian Basin mineral and excited about the interests being acquired such as those owned by our Pasadena marine
“Important energy infrastructure assets –
through this acquisition. Deals like this in
royalty interest the Permian are rare and this is a great oil terminal joint venture – are critical to both
the U.S. and global economy and continue
producing addition to our portfolio and we
Verde Bio Holdings, a growing oil and gas are proud to have built a Company which is to be highly valued,” said Michael Mears,
company, today announced that it has closed creative and flexible enough to take advantage chief executive officer. “As Magellan has
demonstrated in the past, we regularly review
both potential investments and our own
asset portfolio for opportunities to unlock
incremental value for our investors. With this
transaction, we are optimising our portfolio
while retaining a meaningful position in a
strategic and state-of-the-art new facility that
is well-positioned to continue to meet the
growing demand for refined products export
logistics.”
Magellan intends to use the proceeds
from this transaction consistent with its
stated capital allocation priorities, including
potential unit repurchases.
As previously announced, the partnership
plans to announce its financial results for first
quarter 2021 and provide an operational and
financial update on Thursday, April 29.
MAGELLAN MIDSTREAM PARTNERS, April 22,
2021

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