HNRC TO ACQUIRE CUNNINGHAM ENERGY INTERESTS OF UP TO $100 MILLION
Houston Natural Resources Corp (OTC: HNRC) announced a Letter of Intent to form a Special Purpose Acquisition Corporation for acquiring interests in Cunningham Energy LLC. The planned transaction involves up to $100 million in cash and securities, aimed at oil and gas exploration in the U.S. and Canada. Additional funding of $600 million is also planned. Cunningham Energy operates in the Appalachian Basin and has significant reserves, targeting further development. This strategic move is expected to enhance HNRC's market position and shareholder value.
- Formation of a SPAC for acquiring interests in Cunningham Energy, potentially enhancing HNRC's market presence.
- Aiming for up to $600 million in future development funding, indicating strong growth potential.
- Cunningham Energy's existing operations in the Appalachian Basin with significant development opportunities.
- The success of the acquisition is contingent upon completing due diligence and securing financing.
- Future growth and profitability depend on the successful execution of the planned drilling programs and market conditions.
HOUSTON, March 23, 2022 /PRNewswire/ -- Houston Natural Resources Corp (OTC: HNRC) ("HNRC or the Company") announced today that it has signed a Letter of Intent for a transaction with Cunningham Energy LLC ("Cunningham Energy").
HNRC will form a Special Purpose Acquisition Corporation with cash and securities for the acquisition of interests 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
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 leases. 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 15 Shallow horizontal Big Injun, Weir, and Berea Sandstone Oil wells to fulfil legacy drilling & lease obligations. Identified currently are 75 to 100 potential development well sites on existing leases with plans to expand the company's leasehold footprint through future acquisitions and leasing.
Cunningham Energy has a vertically integrated business model with multiple acquisition targets identified. Since its inception they 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 future.
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
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
Cunningham Energy is engaging auditors to complete its last two years audited statements for a listing onto NASDAQ or NYSE.
Cunningham Energy has entered into a separate agreement to provide advisory services to HNRC that would include the development of the Company's existing 83 wells in the Halff Oil Field in Crockett County, Texas and additional investment opportunities in the energy industry. The fields have independent valuation of
HNRC will also enter into a separate agreement/and or joint ventures with Viper Capital Partners LLC 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 (www.hnrcholdings.com) (OTC: HNRC). The Company is dedicated to increasing shareholder value through developing natural resources with state-of-the-art innovative technologies in tandem with sustainable environmental services of toxic oil field waste disposal and recycling that are environmentally safe and socially responsible. 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.
About Viper Capital Partners LLC
Viper Capital Partners LLC (www.vipercapitalpartners.com) was formed to facilitate capital formation for the oil and gas industry in the areas of Drilling & Production, Leasing, as well as mineral acquisition. The company is based in Houston, TX.
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
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