Arcadia Biosciences: A New Dawn in Sustainable Energy

Arcadia Biosciences, the well-known agricultural technology company, is making waves in the energy sector with its recent announcement to merge with Roosevelt Resources, a Dallas-based oil and gas company specializing in carbon capture, utilization, and storage (CCUS) projects. This strategic move has sent Arcadia's shares surging pre-bell, reflecting investors' enthusiasm for the potential synergies between the two companies.

The strategic review process undertaken by Arcadia since July 2023 has led to this momentous decision. The company has streamlined its operations, reduced expenses, and generated non-dilutive capital by selling assets like GoodWheat™. The merger with Roosevelt Resources is a testament to Arcadia's commitment to creating shareholder value and enhancing its market position. By combining with a company that specializes in CCUS and enhanced oil recovery (EOR), Arcadia gains exposure to a growing and under-owned sector within the energy landscape.

Roosevelt's CCUS project is a significant asset for Arcadia, with estimated proved undeveloped reserves of 780 million gross boe and proved developed producing reserves of approximately 3.8 million gross boe. The project is expected to reach a peak production capacity of 55,000 gross barrels of oil equivalent per day by 2051. This addition to Arcadia's portfolio will diversify its revenue streams and mitigate risks associated with a single industry.

The integration of Roosevelt's operations into Arcadia's existing business model is expected to be a multi-year process. The first phase will focus on the completion of the initial CO2 distribution system, drilling CO2 injection wells, and initial CO2 injections. This phase is estimated to cost around $125 million and is expected to be completed by the end of 2025. Following this, Roosevelt anticipates an average annual increase in production of approximately 4,000 gross boepd for the first ten years, reaching a rate exceeding 40,000 gross boepd and remaining greater than 40,000 gross boepd for over 30 years. The peak production rate of approximately 55,000 gross boepd is expected to be achieved for ten years beginning in 2051.



The acquisition of Roosevelt Resources aligns with Arcadia's long-term strategy of maximizing shareholder value and strengthening its market position. By leveraging Roosevelt's experienced team and established assets, Arcadia can potentially create synergies and improve operational efficiency. As Arcadia shareholders are expected to retain approximately 10% of the outstanding shares post-acquisition, this transaction provides an opportunity for existing stakeholders to participate in the growth and value creation expected from the combined entity.

In conclusion, Arcadia Biosciences' acquisition of Roosevelt Resources is a strategic move that positions the company to capitalize on the growing demand for sustainable energy solutions. By combining its expertise in agriculture with Roosevelt's focus on CCUS, Arcadia can create a unique business model that addresses climate change and sustainability. As the energy landscape continues to evolve, investors should keep a close eye on Arcadia's progress in this exciting new chapter.