Safe & Green expands oil holdings with new acquisition

MIAMI - Safe & Green Holdings Corp. (NASDAQ: SGBX), a company specializing in modular structures and sustainable infrastructure, has announced the acquisition of oil assets from Sherman Oil Company, LLC, and its affiliates, totaling 1,600 acres of oil wells and leases. The acquisition, which took place today, adds 111 wells to Safe & Green’s portfolio, with an expected increase in oil production.

Currently, the acquired assets are producing an average of 45 barrels of oil per day. However, Safe & Green Holdings plans to enhance production to over 75 barrels per day within the next four months by revitalizing the wells using their proprietary Olenox technology. This technology focuses on well cleanouts and restimulations, aiming to activate 90% of the newly acquired wells that are not yet in use.

Mike McLaren, Chairman and CEO of Safe & Green Holdings, expressed the company’s intent to grow as a diversified oil producer and service provider within the oil and gas industry. He highlighted the strategic nature of the acquisition in expanding the company’s oil and gas asset portfolio and providing value to shareholders.

Safe & Green Holdings Corp. is known for its development, design, and fabrication of modular structures, catering to the demand for environmentally responsible solutions across various industries. The firm assists developers, architects, builders, and owners in achieving efficient construction and high-value buildings.

The company’s forward-looking statements, as part of the press release, indicate their confidence in the successful operation and increased production of the acquired oil wells. However, these statements are based on current estimates and assumptions and are subject to various risks and uncertainties. InvestingPro subscribers have access to 14 additional key insights about SGBX’s financial health, valuation metrics, and growth potential, helping investors make more informed decisions about this volatile stock.

The acquisition is part of Safe & Green Holdings’ broader strategy to strengthen its position in the oil and gas sector and deliver shareholder value through sustainable practices. The company remains committed to adhering to NASDAQ listing requirements and navigating the regulatory environment.

This news is based on a press release statement from Safe & Green Holdings Corp. today.

In other recent news, Safe & Green Holdings Corp. has announced a new contract with Three Pines Leasing to provide multiple modular units, expected to be leased to a U.S. government agency. This agreement aligns with the company’s expertise in modular construction and sustainable solutions. Additionally, the company has appointed Samarth Verma to its Board of Directors, following Shafron Hawkins’ departure for a government role. Verma brings a wealth of experience in technology and corporate development, which aligns with Safe & Green’s strategic focus on integrating smart technologies.

In financial developments, Safe & Green Holdings has secured $108 million in committed funding, including a $100 million Equity Line of Credit and an $8 million private placement. These funds will support the company’s growth initiatives and strategic acquisitions, such as the merger with New Asia Holdings and the acquisition of County Line Industrial and Winchester Oil and Gas. Despite these positive strides, the company faces challenges, having received a notification from Nasdaq regarding potential delisting due to shareholder dilution from securities issuance. Safe & Green plans to appeal this decision and, if necessary, apply for trading on the OTCQB market.

Furthermore, the company has announced an $8 million private placement, with units comprising common stock and warrants. The proceeds are intended for working capital and expansion purposes. Safe & Green Holdings continues to focus on enhancing its market presence and operational capabilities through strategic expansions and funding initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.