Shares of the oil and gas company Verde Bio (OTC: VBHI) rose +109.10% on Wednesday. The VBHI stock closed the sessions at $0.0340 after adding $0.0177 to its value on the day. The surge in the Verde Bio stock came following news of concluding the acquisition of mineral and royalty interests that could generate significant revenues for the energy company.
What was the acquisition deal?
Based in Frisco, Texas, Verde Bio is an emerging energy company in the United States. As an investment company, VBHI works to acquire and manage Mineral Rights and Royalties in lower risk onshore oil and gas properties within the major oil and gas plays in the U.S. Among management’s primary strategies for growth, Verde Bio will leverage revenue-producing royalties, along with strategic and opportunistic non-operated working interests, to acquire more companies.
For a purchase price of $152,000 in cash, Verde Bio has closed on the purchase of revenue-producing mineral and royalty interests from a private seller, announced the company in a press release today. The deal’s highlights are summarized below:
- VBHI is entitled to certain cash flow from the production started after March 1, 2021, attributable to the acquisition.
- Highpoint Resources operates the interest being acquired in Weld County, Colorado.
- Eight oil-producing wells are currently scattered across the acreage, with an estimated monthly revenue of $3,000, though that is expected to increase considerably as oil prices rise.
- Verde Bio’s latest transaction takes advantage of the Denver Julesburg Basin’s abundant energy resources.
What VBHI has gained?
In accordance with its strategic goals, Verde Bio (VBHI) continues to acquire minerals and royalties. With all this, VBHI managed to develop a highly diversified portfolio of investments that encompassed a wide variety of profitable projects as a result of its activities in the energy market.