FRISCO, TX - (NewMediaWire) - August 01, 2022 - Verde Bio Holdings, Inc. (OTCQB: 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, my focus is on creating long term shareholder value and are very excited as we embark on a new year. The past year transformed Verde to a true oil and gas company with tremendous opportunity and 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. As commodity prices continue to rise, so does our revenue on a relative basis, offering increased revenue with no increased cost to Verde. 

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 2022 results reflect strong revenue with only 7 months of receipts at lower oil and gas prices. We look forward to a healthy FYE 2023 as we will have a full year of revenue on all properties acquired, at higher and even record setting oil and gas prices along with numerous new wells being drilled and completed on our acreage. We will be 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 $10,000,000 in 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 over $1.3 million in 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 2.5 years we went from the above to the highlights below:

• Total Adjusted Revenue up 384% year over year to $719,997.82 compared to 48,520.22 in 2021 net of taxes and other costs to our properties. As we’ve discussed before, we began our acquisitions in March of 2021 and once acquired there is a delay in revenue due to the transfer process. We received our first revenues from our major acquisitions around October 2021 which ultimately gave us approximately 7 months of revenue due to our fiscal year end being April 30th. Also of note, revenue for the year was based upon significantly lower commodity prices compared to more recent pricing.  

• Total Reserves as of 4/30/2022 were $2.6 million based upon SEC required pricing at $78.39/bbl oil and 4.34/mcf of Natural Gas. 

• Annual net production of 5,134 Barrels of Oil, 103,659 MCF of Natural Gas and 99,763 Barrels of Natural Gas Liquids.

• Net loss of $3,422,146 compared to a 2021 net loss of $3,315,000, inclusive of non-cash adjustments for 2022 of $1,266,046 million due to impairment based upon the current SEC reserves pricing of $78.39 bbl and $4.34 mcf compared to $1,927,810 million in 2021, as well as a depletion expense to the company of $565,726 compared to $50,185 in 2021.

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 recently terminated our previously announced agreement to acquire royalties in the Haynesville Shale due to a lack of suitable funding in the debt markets. 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:

Due to the SEC pricing requirements for Reserve Reporting and getting such a late start in our fiscal year with the acquisitions, Net Income was not realized. We received our first revenues from our major acquisitions in October 2021, which gave us 7 months of revenue for the year.  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. 

During the year, we had significant one-time expenses related to the growth of the company. We also had significant expenses related to our well service and production related property acquisition. Currently, the company is evaluating strategic options for the property such as drilling new wells or reworking older wells on the property and/or a lease or strategic sale. 

In the upcoming year, we look to expand our portfolio and also begin to look at acquiring some strategic operated and non-operated working interest in stable 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.  

Corporate Highlights:

On a Corporate note, we plan to do 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 have recently engaged PCG Advisory as our PR/IR firm and New to the Street in order 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. www.verdebh.com  

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.

Contact:
Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
ksmith@pcgadvisory.com