Acquisition to increase Revenue and Asset Value Substantially
HOUSTON, Oct. 17, 2022 /PRNewswire/ — Houston Natural Resources Corp (OTC: HNRC) (“HNRC or the Company”) announced today that it extended its Letter of Intent to acquire additional interest, for up to 100% interest, in Cunningham Energy, LLC on or before December 31, 2022.
The company has previously announced the competition of the acquisition of a 9% interest of Cunningham Energy, in cash and securities, valued at $19,620,000.
HNRC will utilize an existing Special Purpose Acquisition Corporation with cash and securities for the acquisition of the additional interest in Cunningham Energy with the purpose of acquiring, exploring, and producing oil and gas in the United States and Canada. The proposed investment is for up to USD $100,000,000 in cash and securities and subject to the competition of due diligence and financing. The parties are committed to closing the transaction on or before December 31, 2022. Under the Letter of Intent additional future development funding for up to $600,000,000 from SPAC and PIPE follow on transactions are also planned. These acquisition interests bring HNRC into the Oil & Gas Exploration and Production business with room for further asset and revenue growth.
An independent engineering company has completed an evaluation of the Oil & Gas Assets of Cunningham Energy. The appraised value of the company’s leasehold position as of May 18th, 2022, is $218 million dollars, assuming the current proposed 40 well drilling program is completed. The acquisition of the 9% interest of Cunningham Energy, in cash and securities, is valued at $19,620,000, which increases the company asset value by $0.39c per share to $2.82 per share from $2.43 per share, up 16% as reported in their Q2 financials an August 1, 2022, based on the current shares outstanding.
With this acquisition, the company further expands its interest in Oil, Natural Gas and Oil Field Services properties. It further expands its overall business interest to Canada and is looking to increase expansion internationally.
Cunningham Energy is an independent producer of oil and gas. Cunningham Energy conducts operations and oil/gas interests in the Appalachian Basin with over 30,000 plus net acres of leasehold. Cunningham Energy was formed in 2008 and was a pioneer of shallow horizontal oil drilling in West Virginia starting in 2014. During its future phase 1 development program in West Virginia, Cunningham Energy is to permit, drill, and complete 20 Shallow horizontal Big Injun, Weir, and Berea Sandstone Oil wells to fulfil legacy drilling & lease obligations. Identified currently are 68 potential development well sites on existing leases with plans to expand the company’s leasehold footprint through future acquisitions and leasing.
Cunningham Energy is engaging auditors to complete its last two years audited statements for a listing onto NASDAQ or NYSE.
About Houston Natural Resources Corp
Houston Natural Resources Corp. (OTCMKTS: HNRC)(www.hnrcholdings.com) is a diversified energy company with oil and gas interests as well as wastewater treatment facilities. Additionally, the company owns over $53 million in non-energy assets which it will spin off into Worldwide Diversified Holdings, Inc. (WDHI) in 2022. HNRC Shareholders of record prior to the end of 2022 will receive equity in WDHI based on shares owned in HNRC. The spin-off changes the focus of the company towards its energy reserves, the Halff Oil Field in Crockett County, Texas, 83 oil wells, estimated 33 million barrels of oil and water treatment and appraised reserves of $69 million. Furthermore, the company’s net earnings Q2 Revenue $5.13M +41% Y/Y, increased 38%, $0.18 earnings per share (EPS), $74M Assets, NAV $2.43/share for the first six months of 2022. The company will also continue to seek new oil and gas and wastewater acquisitions as it focuses on creating more value for HNRC investors.
The Company, through its subsidiary Houston Natural Resources, Inc sponsored HNR Acquisition Corp, a Special Purpose Acquisition Corp (NYSE:HNRA).
About Cunningham Energy LLC
Cunningham Energy (www.cunninghamenergy.com) is an independent producer of oil and gas based in Charleston, West Virginia. The company was formed in 2008 for the purpose of acquiring, exploring, and producing oil and gas in the Appalachian, Illinois, and Williston Basins. Since inception we have relied on past experience in parallel with the application of new technologies to succeed in the ever-changing field of efficient energy production. Cunningham Energy is positioned to take advantage of current and future trends in oil and natural gas production throughout these basins with aggressive but responsible decisions in the coming future.
FORWARD-LOOKING STATEMENTS:
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.
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SOURCE Houston Natural Resources Corp
