HNRC
TO ACQUIRE CUNNINGHAM ENERGY INTERESTS OF UP TO $100
MILLION
Letter of Intent
signed for up to $100 million in cash and securities with
additional total development amounts up to $600 million including
future SPAC and PIPE funds
HOUSTON, TX -- March 28, 2022 --
InvestorsHub NewsWire -- 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 $100,000,000 in cash and securities and subject to
the competition of due diligence and financing. The parties are
committed to closing the transaction on or before June 30,
2022. Under the Letter of Intent
additional future development funding for up to $600,000,000 from
SPAC and PIPE follow on transactions are also planned.
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 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.
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 $69 million based on initial valuations of $50 per
barrel of oil and $3 per MMBtu of natural gas.
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.
Contact:
Houston Natural Resources Corp.
E-mail: frank@hnrcholdings.com
Houston Texas USA.
Follow
Us
