HNRC COMPLETES ACQUISITION OF
INTEREST IN CUNNINGHAM ENERGY
Acquisition Increases Asset Value
Substantially
HOUSTON, TX -- October 11, 2022 -- InvestorsHub NewsWire
-- Houston Natural Resources Corp (OTC: HNRC) ("HNRC or the Company") announced
today that it has completed the acquisition interest in Cunningham
Energy, LLC effective September 19, 2022.
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 of Canada Inc. also controls an interest in more
than 965,000 acres in the Matapedia Valley, Gaspesie, Quebec Canada
from Marzcorp Inc. on a 75% NRI (net revenue interest) basis
through an executed Farmout Agreement. Over $14 million has been
spent on the project to date through collaboration with Marzcorp
Inc. Fifteen core holes have been completed with three bringing
hydrocarbons to surface on production test. The 51-101 report
indicates a High Estimate case of 5.088MMSTB (million stock tank
barrels of light sweet crude) recoverable reserves (from 4 targets
covering only 3% of the property). Currently, there are 7 verified
drilling targets for Phase 1 as well as 12 drilling areas of
interest targeted on the leasehold. Resource potential on the total
965,000 acre leasehold of up to 500 million plus barrels of
oil ("OOIP") Oil-Initially-In-Place, as well as barrels of
oil equivalent (BOE) from multiple conventional reservoir targets
and total area has been estimated. The median EUR recovery
projected of oil per lateral in the Forillon/Indian Cove formation
on areas the company's farmout leasehold has been estimated at
942,000 bbls. The Forillon/Indian Cove is a naturally
fractured limestone conventional formation of lower Devonian age.
The property has shown documented 51 API gravity light sweet oil
samples produced during core drilling.
Cunningham Oilfield Services (COS), a division of Cunningham
Energy, provides a variety of oilfield services and equipment
within the Appalachian Basin. From drilling and support of
horizontal and vertical wells to general well service, rigs and
equipment. The recent US Government Bipartisan Infrastructure Deal
includes a $16 Billion investment in legacy pollution clean-up,
including $11.3 billion for abandoned mine land and water
reclamation projects and $4.7 billion for orphaned well site
plugging, remediation, and restoration activities.
Cunningham Oilfield Services projects meaningful participation in
the program moving forward which includes recently allocated funds
for West Virginia and Texas.
Cunningham Energy is engaging auditors to complete its last two
years audited statements for a listing onto NASDAQ or NYSE.
HNRC
will also enter into a separate agreement/and or joint ventures
with Viper Capital Partners LLC (www.vipercapitalpartners.com)
on a deal-by-deal basis for further development of acreage,
minerals, and drilling projects in the lower 48 states, including
West Virginia and Texas.
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.
Contact:
Houston Natural Resources Corp.
E-mail: frank@hnrcholdings.com
Houston Texas USA.
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