Verde Bio Holdings Provides First Quarter Corporate Update

FRISCO, TX - (NewMediaWire) - September 15, 2022 - Verde Bio Holdings, Inc. (OTCQB: VBHI), a growing oil and gas company, today issued its first quarter shareholder update, along with its 10-Q filing with the highlights of the Quarter and what is in store for the future.

The Company remains very bullish on oil and gas and the growth and acquisition opportunities ahead. Verde has built an excellent portfolio and as commodity prices continue to rise, so does its revenue on a relative basis with no increased cost to Verde.

Commenting on the results, CEO Scott Cox said:

"I'm pleased to report another quarter of consistent execution towards our growth initiatives driven by the strategic expansion of our low-risk, long-life, low-decline asset acquisition model into complementary acquisitions. These transactions continue to enhance our scale and improve our portfolios. Looking forward, we are focused on the growth of our portfolio and revenues as well as overall profitability. Our differentiated and value focused business model continues to deliver exceptional results and as the Company transitions into a more traditional E&P company which holds a significant portfolio of revenue production royalties, we are very excited about the future.”

First Quarter Key Highlights

The Company remains laser focused on the consistent execution of our business model and is pleased to share a few highlights below:

      Total Reserves as of 07/31/2022 were up significantly to $3.2 million PV-10 value based upon SEC required pricing at $88.54/bbl oil and $5.36/MMBTU/ of Natural Gas.

      Total Adjusted Revenue up to $209,910 compared to royalty revenues of $64,599 for the three months ended July 31, 2021, net of taxes and other costs to our properties. We did have some delays in revenue on some of our major properties due to fires and weather which required the wells and pipelines to be shut in for a few weeks and were then brought back online slowly. Further, as part of the revenues generated from the oil and gas properties, the Company recorded depletion expense of $145,121 during the three months ended July 31, 2022, compared to depletion expense of $21,989 during the period ended July 31, 2021, which represents the proportionate use of the produced units in the properties relative to proven and probable reserves.  The overall increase in depletion expense is reflective of the overall increase in investment in royalty properties.

Portfolio Highlights and Acquisition Activity:

To date, we have made over 18 acquisitions of revenue producing properties and as recently announced, have made our first operated working interest acquisition.  Our current royalty portfolio consists of the following:

Revenue producing royalty interest in over 400 wells under operators such as, SWN Energy, EOG, Civitas, Ovintiv, Aethon, Ascent, Chesapeake, Petro Operating and others.

Breakdown of Portfolio by State and Basin:

      Texas 35% in Permian/Delaware Basin and Eagleford Shale

      Colorado 29% in the DJ Basin and Piceance Basin

      Louisiana 19% in Haynesville Shale

      OH, WV, WY and OK 19% in Utica and Marcellus Shale, Powder River Basin and the Anadarko Basin

We continue to have a healthy pipeline of new deal-flow and are evaluating potential acquisitions which complement our portfolio, as well as seeking opportunistic divestments in which we can make large profits, while actively managing the portfolio to make sure we are maximizing revenue based on current commodity environments. Active management also includes seeking divestment of low-performing assets to free up needed cash for reinvestment into better performing and higher growth potential assets.

Operational Highlights:

The Company continues to incur significant one-time expenses related to the growth of the company in legal, accounting, and consulting fees in deal analysis and financings. We still have not reached a point of profitability, however, we are very excited about the current year and the high levels of cash-flow we are able to project as well as the acquisition and divestment opportunities in the current markets which we are hopeful will get us to profitability soon.

The Company remains growth focused, and we look to expanding our portfolio and also acquire additional strategic operated and non-operated working interest in stable, low-risk areas. This allows for significant revenues, tax benefits for the Company and the ability to book significantly higher reserves which helps with the SEC pricing delta we have in the impairment in our accounting. The Company recently announced the acquisition of 2 leases and 2 oil and gas wells for which the company is currently evaluating the best plan for reworking the wells and bringing them back into production.

Corporate Highlights:

On a Corporate note, we are currently working through plans for a name change to further define the company as an oil and gas Company. We also plan to add at least 2 Board Members in the near future.

We continue to target listing on the NASDAQ or the NYSE American Exchange as soon as practically possible and believe we meet the majority of the requirements for each of these exchanges at this time. Along with these transformative plans to move to National Exchange, we will also be looking to work with energy funds and bankers to establish a credit facility in order to facilitate larger acquisitions which we believe have the power to transform our Balance Sheet in a tremendous way.

Further, as previously mentioned, we continue to work with our IR/PR and Marketing teams to increase market awareness and to attract new long-term growth investors who believe in a company being built on fundamentals.

In summary, we remain focused on execution and are prudently investing in our continued growth, with an emphasis on creating a dynamic and profitable company and focusing on delivering exceptional results for all shareholders.

About Verde Bio Holdings, Inc.

Verde Bio Holdings, Inc. (OTCQB: VBHI) is an Energy Company based in Frisco, Texas, engaged in the acquisition and management of Mineral and Royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the U.S. The Company’s dual-focused growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of revenue producing royalty interest and strategic and opportunistic non-operated working interests.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2021 Annual Report on Form 10-K and quarterly reports on Form 10-Q.


Kirin Smith, President

PCG Advisory, Inc.