PHX Minerals Inc. continues to grow its Haynesville footprint with the announcement on April 25 of another mineral and royalty acquisition targeting the play in Louisiana.

The acquisition is in addition to PHX’s $5.1 million acquisition in the Haynesville announced on April 19, and will also be funded with a combination of cash on hand and borrowings under its existing credit facility.

“The company continues to expand its presence in the Haynesville while preserving the strength of our balance sheet,” PHX Minerals said in an April 25 company release.

According to the release, PHX agreed to acquire approximately 477 net royalty acres located in three contiguous sections operated by Chesapeake Energy Corp. primarily in Caddo Parish, La., for aggregate consideration of $4.3 million in cash from a private seller. The transaction is expected to close May 13.

The acquisition includes three PDP gross wells, two gross DUCs and an additional estimated 10 gross undrilled locations with estimate net reserves of 3 Bcf. No drilling rigs currently running on the acquisition assets.

Estimated next 12 months net production totals between 350 to 450 Mcf/d, comprised of 100% natural gas. The averages 1.8% net royalty interest across three sections, providing impactful future cash flows, the company release added.

Formerly Panhandle Oil and Gas, PHX is targeting to proactively grow its mineral position in core areas of focus as part of the strategy to high-grade the company’s asset base. 

“Since January 2020, our focus has been to pursue natural gas assets as we believe it is a key component to the energy transition,” Chad Stephens, president and CEO of PHX Minerals, commented in a company release on April 19.

At the time, PHX had acquired approximately 5,000 net royalty acres in the Haynesville deploying an estimated $40 million of capital while maintaining a strong balance sheet, according to Stephens.

“The Haynesville is a premier natural gas resource that is at the front door of U.S. LNG export terminals,” he continued. “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.”

PHX, based in Oklahoma City, currently owns approximately 251,000 net mineral acres principally located in Oklahoma, Texas, Louisiana, North Dakota and Arkansas, according to the April 25 release said.