Houston Natural Resources Corp Portfolio Company Completes Business Combination

Rhea-AI Summary

Houston Natural Resources Corp (OTC: HNRC) has completed the acquisition of Pogo Resources, LLC and its subsidiary, LH Operating, LLC, becoming an independent oil and natural gas company focused on the Permian Basin. The company's assets include the Grayburg-Jackson oil field, with production increasing from 500 BOE per day to 1,388 BOE per day for the nine months ended September 30, 2023. LHO had $20.3 million in revenues, generating positive cash flow and $3.9 million of net income for the same period. The company anticipates declaring a dividend of its HNRA position in 2024, subject to existing lock-up agreements and regulatory reviews being completed.

Positive

• Completion of the acquisition strengthens the company's position as an independent oil and gas powerhouse in the Permian Basin
• Significant increase in production from the Grayburg-Jackson oil field is a positive indicator for future revenue and growth potential
• LHO's positive cash flow and net income show financial stability and profitability

Negative

• None.

 Emerging as an Independent Oil and Gas Powerhouse in Permian Basin

HOUSTON, Dec. 11, 2023 /PRNewswire/ -- Houston Natural Resources Corp (OTC: HNRC) ("the   Company") has announced that its portfolio company HNR Acquisition Corp ("HNRA") has completed a business combination on November 15, 2023 by purchasing all the equity interests in Pogo Resources, LLC and its subsidiary, LH Operating, LLC (collectively "LHO"). HNRA is now an independent oil and natural gas company focused on the acquisition, development, exploration and production of oil and gas properties in the Permian Basin. The Company's assets include its interest in the Grayburg-Jackson oil field in the prolific Permian Basin in New Mexico.

LHO was a privately owned company that operated the Grayburg-Jackson field (the "field") from early 2020 after acquiring the property in late 2019. The 2020 baseline production level was approximately 500 barrels of oil equivalent (BOE) per day. LHO's production has increased from the baseline 500 BOE to an average of 1,388 BOE per day for the nine months ended September 30, 2023. All field production of the Company is being sold under long-term contracts to various customers in the USA.

LHO had $20.3 million in revenues generating positive cash flow and $3.9 million of net income for the nine months ended September 30, 2023. As of September 30, 2023, total assets of LHO were $70.4 million. With the acquisition now completed, HNRA will report its first consolidated financials for the fiscal year ended December 31, 2023. The results from the acquisition will only be included for six (6) weeks of the fourth quarter in the fiscal year ended December 31, 2023.

Following the acquisition, all of the experienced field personnel of LHO who achieved these results have remained with the Company.

HNRC anticipates declaring a dividend of its HNRA position in 2024 subject to existing lock up agreements, final board approval and any regulatory reviews being completed.   

About Houston Natural Resources Corp 

Houston Natural Resources Corp (OTC: HNRC) (https://hnrcholdings.gcs-web.com) stands as a versatile energy enterprise with stakes in both oil and gas. Notably, the company has successfully obtained full ownership, a 100% interest, in Cunningham Energy LLC, boasting appraised reserves totaling $352 million. Additionally, Houston Natural Resources Corp holds minority investments in Rhino Energy Ltd, CE Energy Sponsors, LLC, and HNR Acquisition Corp. Demonstrating a commitment to growth, the company remains proactive in its pursuit of new opportunities within the energy and energy transitions sectors, all with the overarching goal of delivering enhanced value to its shareholders.

About Cunningham Natural Resources Corp

Cunningham Natural Resources Corp (www.cunninghamnaturalresources.com) is dedicated to pursuing both conventional oil and gas prospects and opportunities in energy transition materials. This encompasses mining ventures in copper, lithium, gold, as well as other valuable and rare earth metals. With a global perspective, the investment strategy is underpinned by a commitment to sustainability, making it an integral element of the company's core approach.

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
12 Greenway Plaza, Suite 1100
Houston, Texas 77046
Phone: (713) 425-4901
E-mail:   frank@hnrcholdings.com 
Website: www.hnrcholdings.com
Twitter:   https://twitter.com/CunninghamCorp

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SOURCE Houston Natural Resources Corp

FAQ

What is the company name and ticker symbol of the independent oil and natural gas company focused on the Permian Basin?

The company's name is Houston Natural Resources Corp and its ticker symbol is OTC: HNRC.

What are the company's assets after completing the acquisition?

The company's assets include the Grayburg-Jackson oil field in the Permian Basin.

What was the baseline production level of the Grayburg-Jackson oil field and how much has it increased?

The baseline production level was approximately 500 BOE per day, and it has increased to an average of 1,388 BOE per day for the nine months ended September 30, 2023.

What were the revenues and net income of LHO for the nine months ended September 30, 2023?

LHO had $20.3 million in revenues generating positive cash flow and $3.9 million of net income for the same period.

What is the company's plan regarding declaring a dividend of its HNRA position in 2024?

The company anticipates declaring a dividend of its HNRA position in 2024, subject to existing lock-up agreements and regulatory reviews being completed.