Verde Bio Holdings Provides Fiscal Year End Corporate Update

FRISCO, TX - (NewMediaWire) - August 02, 2023 - Verde Bio Holdings, Inc. (OTC: VBHI), a growing oil and gas company, today issued its fiscal year end shareholder update.

To our valued friends and shareholders, we hope that this finds you well and enjoying the summer. We at Verde continue to execute our strategy and are pleased to provide a corporate update along with our 10-K filing with the highlights of the past year and what is in store for the future.

As a new fiscal year begins for us, I would like to share some of our successes over the past year and objectives for the coming year. As I have stated many times in my prior press release, our focus is on creating long term shareholder value and this past year transformed Verde into a true oil and gas company with tremendous opportunity with a proven strategy to capture it. We continue to be very bullish on oil and gas and the future of Verde as a growing and profitable company. We are very excited as we embark on a new year.

Major Highlights in Fiscal year 2023

      No outside long or short term debt

      Increased Revenue by over 29% from the same time last year

      Engaged an investment bank (announced April 20th)

      Acquired over 18 revenue producing properties

      Decreased overall expenses, (excluding one-time charges)

      Hired an experienced IR firm to help with communications

      Strategic divestitures of non-core lower performing assets

Commenting on the results, CEO Scott Cox said:

"I'm pleased to report another year 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 enhanced our scale, enlarged our portfolio and created strategic optionality across our expanded operations. Our 2023 results reflect strong revenue growth of 29% and we look forward additional growth in FYE 2024. We remain focused on the growth of our portfolio and revenues as well as overall profitability. Our differentiated and value focused business model delivered an exceptionally strong year and the company performed very well given the short amount of time we have been in control of the Company.

Key Highlights

In November 2019, we took over the company which was severely out of compliance due to filings with SEC, no revenue and heavy debt. We brought the company back into compliance and raised capital through a Reg A Offering which was fully subscribed by May 2021. Beginning in March of 2021, we began deploying that capital and have closed 18 revenue producing acquisitions to date and cleaned up the balance sheet by retiring a significant amount of toxic convertible debt that we inherited with the takeover of the Company. So as a reminder of the consistent execution of our business model, in a little over 3.5 years we went from the above to the highlights below:

      Total Adjusted Revenue up 29% year over year to $926,099 compared to $719,998 in 2022 net of taxes and other costs to our properties. Also of note, revenue for the latter half of the year was based upon significantly lower commodity prices compared to higher prices in first half.

      Total Reserves as of 4/30/2023 were up to $2.95 million based upon SEC required pricing at $89/bbl oil and 5.67/mcf of Natural Gas, a ~11% increase from last year.

      Net loss of $1,639,926 compared to a 2022 net loss of $3,150,120, a ~48% decrease year over year. This is inclusive of non-cash adjustments for 2023 of $464,634 due to a depletion expense to the company of $464,634 compared to $565,726 in 2022. Also included in the loss for this year was $325,000 in non-refundable deposits for the large Haynesville Shale acquisition that we were unable to complete due to a lack of suitable funding in the debt markets.

Portfolio Highlights and Acquisition Activity:

To date, we have made over 18 acquisitions of revenue producing properties. Our current portfolio consists of the following:

Revenue producing 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 ensure 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.

Further as we recently announced, we have begun to market our lower performing non-core properties. Our latest sale netted the company $398,750 in proceeds and when calculated with royalties received during our holding period, the Company enjoys a healthy profit in deals like these which bring cash back into the Company to reinvest in better performing properties.

Corporate Highlights:

On a Corporate note, the Company is still working with FINRA to approve our application for name change and reverse split.

We are in discussion to uplist with the NYSE American Exchange and Nasdaq as soon as practically possible and believe we meet the majority of the requirements for each of these exchanges at this time. For pursuit of this move, as recently announced, the Company retained a specialized investment bank as well as NYC based securities counsel. Both of these will also help to ensure compliance in future capital raising and filings to ensure no regulatory issues. Once we receive FINRA approval, we will begin to work with energy funds and the 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.

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. (OTC: VBHI) is an Energy Company 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.