Phoenix Capital Group acquires 600,000 oil-rich acres in Bakken from AgWest Farm Credit
(WO) – Phoenix Capital Group has acquired nearly 600,000 net mineral acres from AgWest Farm Credit. The assets acquired are spread across four states, with more than 50,000 net mineral acres in the oil-rich counties of Richland and Roosevelt on the Montana side of the Bakken formation.
The transaction, which closed on Jan. 5, 2024, represents one of the largest single acquisitions the company has ever made.
The minerals acquired through this deal are currently producing approximately $200,000 in royalties per month. The cash flow for 2023 reached $2.47 million, and this figure is expected to experience substantial growth as Phoenix Capital Group further develops the acreage.
Currently, there are 441 stable producing, shallow decline wells on the acreage across the mineral interests acquired from AgWest Farm Credit, and there are well over 100 new well locations that can and likely will be drilled in the future across the acquired land.
Phoenix Capital Group has been actively acquiring minerals and leasehold in Richland and Roosevelt counties since 2019. The Montana side of the Bakken formation continues to be a focus area for the company, as the state offers some of the most attractive investment opportunities in the Williston basin.
Chief Land and Title Officer at Phoenix Capital Group Justin Arn said, “What is particularly notable about this purchase, beyond just the size and scope, is that Phoenix Capital Group is one of the only mineral buyers in the country positioned to capitalize on these mineral rights by accessing them directly through our operating arm, Phoenix Operating. In that regard, this sale represents a massive boon not just for Phoenix Capital Group and AgWest Farm Credit but for all mineral owners in Richland and Roosevelt counties, as new production on these lands will benefit the surrounding mineral owners throughout the region.
This acquisition aligns with Phoenix Capital Group's strategic goal of expanding its asset footprint in Montana, enabling the company to capitalize on bolt-on opportunities and strengthen its existing position through further acquisitions. By achieving greater scale in the state, Phoenix Capital Group is better positioned to deliver enhanced efficiency and value to its stakeholders.
Through this transaction alone, in addition to the initial 100 new development locations in core areas of Richland and Roosevelt County, Phoenix Capital Group anticipates this figure will grow as the area is further developed and de-risked
Founded in 2019, Phoenix Capital Group Holdings, LLC is an oil and gas mineral rights acquisition and non-operated working interest company headquartered in Denver, Colorado.