HNRC PROVIDES UPDATE ON CUNNINGHAM ENERGY ACQUISITION
HOUSTON, May 6, 2022
/PRNewswire/ -- Houston Natural Resources Corp (OTC: HNRC)
("HNRC or the Company") provided an update today on its
acquisition of Cunningham Energy LLC ("Cunningham
Energy").
HNRC is currently doing due diligence for the proposed
transaction. The company is engaging investment banks and
accounting firms to assist with the due diligence and financing.
The proposed investment is for up to USD $100,000,000 in cash and securities and the
parties are committed to closing the transaction on or before
June 30, 2022.
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 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.
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
+1 757-707-4563
Houston Texas USA.
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SOURCE Houston Natural Resources Corp.
