HNRC SPONSORED SPAC FILES FOR $120 MILLION BUSINESS COMBINATION

Rhea-AI Summary

Houston Natural Resources Corp. (OTC: HNRC) announced that its subsidiary HNR Acquisition Corp. (HNRA) has entered into a $120 million membership purchase agreement with Pogo Resources. The deal is expected to yield $100 million in cash proceeds to Pogo, alongside 2,000,000 common shares of HNRA. HNRA currently holds around $86 million in trust funds. Additionally, HNRC plans to provide an additional dividend to shareholders after the lock-up period, with a net asset value (NAV) of $1.15 per share in energy assets.

Positive

• HNRA enters a $120 million purchase agreement with Pogo Resources.
• HNRA expected to provide $100 million in cash proceeds to Pogo.
• HNRA holds approximately $86 million in trust, enhancing liquidity.
• HNRC plans an additional dividend to shareholders in 2023.
• Net asset value of $1.15 per share in energy assets supports financial stability.

Negative

• None.

HOUSTON, Jan. 5, 2023 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNRC or the Company") has previously announced that its subsidiary Houston Natural Resources, Inc, through its majority owned HNRAC Sponsors, LLC, sponsored a Special Purpose Acquisition Corp ("SPAC"), HNR Acquisition Corp ("HNRA"). HNRA has entered into a membership purchase agreement with Pogo Resources and two affiliates ("Pogo") for a purchase price of $120 million dollars. Dallas-based Pogo acquires, develops, and exploits oil and gas assets in Texas' Permian Basin.

HNRA has an estimated $86 million in its current trust and the transaction is expected to provide $100 million in cash proceeds to Pogo, including a $15 million promissory note. The sellers are also to receive 2,000,000 common HNRA shares, and 500,000 shares are to be placed in escrow for HNRA's benefit. Aside from these shares, HNRA is to receive a 100% interest in Pogo Resources on the first day of the calendar month that is four months prior to the deal's close.

In October, HNRA entered into a common stock purchase agreement with White Lion Capital, under which White Lion Capital could be directed to purchase up to $150 million in newly issued shares of the combined company between close and December 31, 2025.

The 15 oil and gas companies that have completed SPAC deals dating back to 2011 are also trading at a median share price of $7.70 with four of these last closing above $22 (Spacinsider).

Houston Natural Resources Corp. (OTC: HNRC) has previously announced that its strategy will result in an additional dividend to its shareholders, after the lock up period has expired, on its SPAC investments. This would provide a potential additional dividend for Houston Natural Resources Corp.'s (OTC: HNRC) shareholders in 2023. Houston Natural Resources Corp. (OTC: HNRC) intends to continue to pursue its long-term strategy of acquiring energy assets and providing additional dividends to shareholders in 2023 and currently has a net asset value (NAV) $1.15 per share in appraised energy assets.

About Houston Natural Resources Corp

Houston Natural Resources Corp (www.hnrcholdings.com) (OTC: HNRC). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in energy, information technology and healthcare.

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

FAQ

What is the recent SPAC deal involving HNRC and HNRA?

HNRC's subsidiary HNR Acquisition Corp. (HNRA) has signed a $120 million purchase agreement with Pogo Resources.

What are the expected cash proceeds from the HNRA and Pogo deal?

The deal is expected to generate $100 million in cash proceeds for Pogo Resources.

What is the current trust fund value for HNR Acquisition Corp.?

HNRA currently has an estimated $86 million in its trust fund.

What is Houston Natural Resources Corp.'s plan regarding dividends in 2023?

HNRC plans to provide an additional dividend to its shareholders after the lock-up period expires in 2023.

What is the net asset value (NAV) per share for HNRC?

HNRC currently has a net asset value of $1.15 per share in energy assets.