PHX expands in US Haynesville play
Oklahoma-based PHX Minerals announced on April 19 it had reached a deal to acquire 506 net royalty acres of gas resources in the Haynesville play in Louisiana for $5.1mn, without disclosing the identity of the seller.
The transaction, which will be funded with cash on hand and borrowings from an existing facility, will see PHX acquire 28 producing wells, 35 more under development and 79 undrilled locations. Production at the sites is set to average 550-650,000 ft3/day over the next 12 months net to PHX, underpinned by 4.1bn ft3 of net reserves. Key operators at the acquired assets including Trinity, Chesapeake, Blue Dome and Comstock.
PHX, which operates across Oklahoma, Texas, Louisiana, North Dakota and Arkansas, entered Haynesville in September last year in two separate acquisitions.
Since January 2020, our focus has been to pursue natural gas assets as we believe it is a key component to the energy transition. The Haynesville is a premier natural gas resource that is at the front door of US LNG export terminals," CEO Chad Stephens commented. "This will prove to be a vital source in alleviating the energy crisis in Europe, which began well before and has only intensified since the invasion of Ukraine."
The latest deal is due to be closed by May 27, expanding PHX's net royalty acres in Haynesville to 5,000.