HNRC PROVIDES UPDATE ON
CUNNINGHAM ENERGY ACQUISITION
Houston, Texas -- May 6, 2022 -- InvestorsHub NewsWire
-- 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.
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.
Houston Natural Resources Corp.
Houston Texas USA.