HNR Acquisition Corp Announces Cost Reductions and Return of Wells to Production with Flowline Improvements
HNR Acquisition Corp (NYSE American:HNRA), an independent upstream energy company with Permian Basin oil and gas properties, has announced significant infrastructure improvements. The company is upgrading flowlines for producing wells to increase production and water injection systems to reduce monthly costs by $30,000. Key points include:
1. Replacing flowlines for 20 previously non-operational wells, with about half of the upgrades completed and oil production resuming.
2. Upgrading water injection flowlines to eliminate the need for water trucking, cutting field operating costs.
3. Expectations of improved production consistency and over 10 BOPD per well after stimulation or recompletion.
These improvements aim to maximize field production and operational efficiency.
HNR Acquisition Corp (NYSE American:HNRA), una compagnia energetica indipendente attiva nella zona del Permian Basin con proprietà di petrolio e gas, ha annunciato importanti miglioramenti infrastrutturali. L'azienda sta aggiornando le tubazioni per i pozzi produttivi al fine di aumentare la produzione e i sistemi di iniezione dell'acqua per ridurre i costi mensili di 30.000 dollari. I punti chiave includono:
1. Sostituzione delle tubazioni per 20 pozzi precedentemente non operativi, con circa la metà degli aggiornamenti completati e la produzione di petrolio che riprende.
2. Aggiornamento delle tubazioni di iniezione dell'acqua per eliminare la necessità di trasporto di acqua, abbattendo i costi operativi in campo.
3. Aspettative di una maggiore coerenza produttiva e oltre 10 BOPD per pozzo dopo stimolazione o ricompletamento.
Questi miglioramenti mirano a massimizzare la produzione in campo e l'efficienza operativa.
HNR Acquisition Corp (NYSE American:HNRA), una compañía energética independiente con propiedades de petróleo y gas en la cuenca de Permian, ha anunciado mejoras significativas en la infraestructura. La empresa está actualizando las tuberías de los pozos productores para aumentar la producción y los sistemas de inyección de agua para reducir los costos mensuales en $30,000. Los puntos clave incluyen:
1. Reemplazo de tuberías para 20 pozos que anteriormente no estaban operativos, con aproximadamente la mitad de las mejoras completadas y la producción de petróleo reanudándose.
2. Actualización de las tuberías de inyección de agua para eliminar la necesidad de transportar agua, reduciendo los costos operativos en el campo.
3. Expectativas de una mejora en la consistencia de la producción y más de 10 BOPD por pozo después de la estimulación o recompletación.
Estas mejoras tienen como objetivo maximizar la producción en el campo y la eficiencia operativa.
HNR Acquisition Corp (NYSE American:HNRA)는 Permian Basin에서 석유 및 가스 자산을 보유한 독립적인 상류 에너지 회사로, 중요한 인프라 개선을 발표했습니다. 이 회사는 생산성을 높이기 위해 생산 중인 유정의 유선관을 업그레이드하고 월 비용을 30,000달러 줄이기 위해 물 주입 시스템을 개선하고 있습니다. 주요 사항은 다음과 같습니다:
1. 20개의 이전 비가동 유정을 위한 유선관 교체, 약 절반의 업그레이드가 완료되었으며 석유 생산이 재개됩니다.
2. 물 수송의 필요성을 없애기 위해 물 주입 유선관을 업그레이드하여 현장 운영 비용을 절감합니다.
3. 자극이나 재완공 후에 10 BOPD 이상의 생산 일관성이 향상될 것으로 기대합니다.
이러한 개선사항은 필드 생산량과 운영 효율성을 극대화하는 것을 목표로 하고 있습니다.
HNR Acquisition Corp (NYSE American:HNRA), une entreprise énergétique indépendante avec des propriétés pétrolières et gazières dans le bassin du Permien, a annoncé des améliorations significatives de ses infrastructures. L'entreprise met à niveau les pipelines des puits producteurs pour augmenter la production et améliore les systèmes d'injection d'eau afin de réduire les coûts mensuels de 30 000 $. Les points clés incluent :
1. Remplacement des pipelines pour 20 puits précédemment non opérationnels, avec environ la moitié des améliorations terminées et la production pétrolière reprenant.
2. Mise à niveau des pipelines d'injection d'eau pour éliminer la nécessité de transporter de l'eau, ce qui réduit les coûts d'exploitation sur le terrain.
3. Attentes d'une amélioration de la cohérence de la production et de plus de 10 BOPD par puits après stimulation ou recompletion.
Ces améliorations visent à maximiser la production sur le terrain et l'efficacité opérationnelle.
HNR Acquisition Corp (NYSE American:HNRA), ein unabhängiges upstream-Energieunternehmen mit Öl- und Gasvorkommen im Permian Basin, hat bedeutende Infrastrukturverbesserungen angekündigt. Das Unternehmen modernisiert die Förderleitungen für produzierende Brunnen, um die Produktion zu steigern, und die Wasserinjektionssysteme, um die monatlichen Kosten um 30.000 USD zu senken. Die wichtigsten Punkte umfassen:
1. Ersetzung der Förderleitungen für 20 zuvor nicht betriebsbereite Brunnen, wobei etwa die Hälfte der Verbesserungen abgeschlossen ist und die Ölproduktion wieder aufgenommen wird.
2. Aufrüstung der Wasserinjektionsleitungen, um die Notwendigkeit des Wassertransports zu beseitigen, wodurch die Betriebskosten im Feld gesenkt werden.
3. Erwartungen an eine verbesserte Produktionskonstanz von über 10 BOPD pro Brunnen nach Stimulation oder Wiedervervollständigung.
Diese Verbesserungen zielen darauf ab, die Produktionskapazität im Feld und die Betriebseffizienz zu maximieren.
- Infrastructure upgrades expected to increase oil production from previously non-operational wells
- Monthly cost reduction of $30,000 by eliminating water trucking for injection wells
- Improved operational consistency and reliability in the Skelly lease
- Potential for over 10 BOPD per well after stimulation or recompletion
- Significant capital expenditure required for flowline upgrades and replacements
- Current production levels not disclosed, making it difficult to assess the overall impact of improvements
Insights
The announcement of cost reductions and production improvements is moderately positive for HNR Acquisition Corp. The company's efforts to upgrade flowlines for both production wells and water injection systems demonstrate a focus on operational efficiency. The expected
The return of previously idle wells to production could boost revenue, but the statement that they expect "every well... to do well over 10 BOPD" (barrels of oil per day) is somewhat vague and doesn't provide a clear picture of the potential production increase. Investors should monitor future reports for concrete production and revenue figures to assess the full impact of these improvements.
The infrastructure improvements announced by HNR Acquisition Corp are technically sound and strategically important. Upgrading flowlines for producing wells addresses a critical issue that was limiting production from 20 wells. This should lead to increased oil output and improved operational reliability. The water injection system upgrades are equally important for maintaining reservoir pressure in their waterflood operations, which is essential for sustaining long-term production in mature fields.
The company's approach of targeting low-hanging fruit by reactivating idle wells due to surface issues is a cost-effective strategy to boost production quickly. However, the statement about expecting over 10 BOPD per well after stimulation or recompletion is conservative and might indicate potential for further optimization. Overall, these improvements set a solid foundation for future field development and production growth.
HOUSTON, TX / ACCESSWIRE / August 15, 2024 / HNR Acquisition Corp (NYSE American:HNRA) (the "Company" or "HNRA") is an independent upstream energy company with oil and gas properties in the Permian Basin. Today, the Company announces key infrastructure improvements and upgrades to (i) flowlines for producing wells which will increase production, and (ii) flowlines for water injection systems which will reduce monthly costs by
Production well flowlines: At acquisition close, we had 20 wells down due to flowline issues. The flowlines delivering the produced fluids to the satellite test stations from these wells were not in reliable condition. Accordingly, the Company has purchased thousands of feet of upgraded flowline pipe and is in the process of replacing and upgrading the flowline pipe that runs to the satellite test stations. Approximately half of the flowline upgrades have been completed. Oil production is returning for those producing wells.
Water injection flowlines: The Company's oil field maintains three water stations that feed water to injection wells that are used in our water flood operations. The main trunk flowline for the Skelly Water Station was inoperable. To furnish water to the injection wells, water has been trucked to the respective injection wells by the Company at a cost of
"The upgrades and improvements to the flowlines will greatly improve consistency in operations. This will result in improved production from our producing wells on the Skelly lease , with more reliable pressure to each of the injection wells," said Jesse Allen, Vice President of Operations.
"We expect every well, with stimulation or recompletion to untapped producing zones, to do well over 10 BOPD. Returning to production idle wells due to surface flowline or facility issues, is our first step to maximizing production in the field," added Dante Caravaggio, President and CEO.
About the Oil Field Property
In November 2023, the Company acquired LH Operating, LLC ("LHO") including its holdings in New Mexico of oil and gas waterflood production comprising 13,700 contiguous leasehold acres, 342 producing wells and 207 injection wells situated on 20 federal and 3 state leases in the Grayburg-Jackson Oil Field. The Grayburg-Jackson Oil Field is located on the Northwest Shelf of the prolific Permian Basin in Eddy County, New Mexico.
Leasehold rights of LHO, now a wholly owned subsidiary of the Company, include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2023 reserve report from our third-party engineer, William H. Cobb and Associates, Inc. ("Cobb"), reflects LHO to have proven reserves of approximately 15.4 million barrels of oil and 3.5 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") in the LHO leasehold is approximately 876 million barrels of oil in the Grayburg and San Andres intervals and 80 million barrels in the Seven Rivers interval for a total OOIP of approximately 956,000,000 barrels of oil.
Our primary production is currently from the Seven Rivers zone. In addition to proven reserves, the Company believes we may access an additional 34 million barrels of oil by adding perforations in the Grayburg and San Andres formations. With proven oil reserves of over 15 million barrels, combined with the potential 34 million additional barrels from the Grayburg and San Andres zones, LHO should produce oil and a revenue stream for more than two decades with a slow decline rate.
About HNR Acquisition Corp
HNRA is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in the United States. HNRA's long-term goal is to maximize total shareholder value from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development, production enhancement, and other exploitation efforts on its oil and natural gas properties.
HNRA's Class A Common Stock trades on the NYSE American (NYSE American: HNRA) and our public warrants trade on the NYSE American (NYSE American: HNRAW). For more information on HNRA, please visit the Company's website: https://www.hnra-nyse.com/
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," "may," "might," "plan," "possible," "should" and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
mike@plrinvest.com
SOURCE: HNR Acquisition Corp
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FAQ
What infrastructure improvements has HNR Acquisition Corp (HNRA) announced?
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