Panhandle Oil and Gas has completed a previously announced sale of the mineral acreage and associated royalty production in New Mexico.
The payment of $9.3 million for the 206 net mineral acres ($45,000 per net mineral acre) located in Lea and Eddy Counties, N.M., will initially be used to reduce the Company’s bank debt.
Paul Blanchard Jr. said: “I am very pleased that we closed on the only notable mineral sale in the Company’s 92-year history. This $9.3 million sale represents only 0.08% of the Company’s 258,600 net mineral acres.
“Panhandle will continue to pursue opportunities to high-grade our assets by strategically monetizing certain mineral rights in transactions such as this. We will continue to add to our mineral portfolio by acquiring mineral acreage in the cores of resource plays with substantial undeveloped opportunities that meet or exceed our corporate return threshold.
“I am also pleased to announce that the 20 drilled uncompleted wells that were acquired in the Company’s August 2018 Bakken mineral purchase are now producing 86 Boe per day. This is significant because the wells are producing at a materially higher rate than projected in our acquisition evaluation and came on more rapidly than projected.”
Source: Company Press Release