HNRC Update December 11, 2023
Emerging Independent Oil & 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
