HNRC ACQUIRES 100% INTEREST IN CUNNINGHAM ENERGY
LLC
Increasing HNRC's Net Asset Value $3.35 Per
Share
HOUSTON, Texas -- July 11, 2023 --
InvestorsHub NewsWire -- Houston Natural Resources Corp
(OTC:
HNRC) ("HNRC or the Company") announced today that it has
completed the acquisition of a 100% interest in
Cunningham Energy, LLC ("CE" or "Cunningham Energy"),
increasing HNRC's net asset value (NAV) $3.35 Per Share.
The Company previously announced the completion of the acquisition
of a 9.9% interest in Cunningham Energy, LLC. The acquisition of
the additional 90.1% interest takes the Company's total investment
in Cunningham Energy LLC to a 100% interest. Ryan Cunningham will
continue to manage Cunningham Energy, LLC. The acquisition was
completed through the issuance of common and preferred stock. The
purchase price includes an escrow of preferred shares for certain
liabilities of Cunningham Energy, LLC.
The Company intends to change its name from Houston Natural
Resources Corp to Cunningham Natural Resources Corp ("CNRC") and
CNRC will be focused on traditional oil and gas opportunities
and energy transition materials including mining opportunities in
copper, lithium, gold, as well as other precious and rare earth
metals. The investment focus will be global with sustainability at
the core of the strategy.
Cunningham Energy has engaged auditors to complete its prior two
years of audited statements for a listing on the NASDAQ or NYSE in
2023 with an underwriting commitment of $10 million dollars.
An independent engineering firm completed an updated evaluation of
the oil & gas assets of Cunningham Energy. The updated
independently appraised value of the CE's leasehold position, as of
December 31st, 2022, is $352
million dollars, assuming the current proposed sixty-eight (68)
well drilling program is completed. The acquisition of the 100%
interest of CE, in cash and securities, increases the Company
appraised asset value by $3.35 per share, based on the current
shares outstanding.
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 net acres of leasehold.
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 plans to permit, drill, and complete twenty (20) shallow
horizontal Big Injun, Weir, and Berea sandstone oil wells to
fulfill legacy drilling & lease obligations. Identified
currently are sixty-eight potential development well sites on
existing leases with plans to expand the CE's leasehold footprint
through future acquisitions and leasing.
Cunningham Energy of Canada Inc. 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 invested in
the project to date through collaboration with Marzcorp Inc.
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 will 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, Ohio, Texas,
Louisiana, and Illinois.
About Houston Natural Resources
Corp
Houston Natural Resources Corp. (OTCMKTS:
HNRC) (www.hnrcholdings.com) is a diversified energy company with oil and
gas interests. The Company has recently acquired a 100% interest in
Cunningham Energy LLC, with appraised reserves of $352 million, The
Company also has minority investments in Rhino Energy Ltd, CE
Energy Sponsors, LLC and HNR Acquisition
Corp. The Company will also continue to seek new
energy and energy transitions opportunities as it focuses on
creating more value for shareholders.
About
Cunningham Energy
LLC
Cunningham Energy (www.cunninghamenergy.com) is an independent producer of oil and gas
based in Charleston, West Virginia. CE 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 previous
experience in parallel with the application of modern technologies
to succeed in the ever-changing field of efficient energy
production. Cunningham Energy is uniquely positioned to take
advantage of current and future trends in oil and natural gas
production throughout these basins with a technically driven and
capital disciplined approach.
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.
About Cunningham Natural Resources
Corp
Cunningham Natural Resources Corp (www.cunninghamnaturalresources.com)
will be focused on traditional oil and gas opportunities and energy
transition materials including mining opportunities in copper,
lithium, gold, as well as other precious and rare earth metals. The
investment focus will be global with sustainability at the core of
the strategy.
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
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