HNRC ACQUIRES 100% INTEREST IN CUNNINGHAM ENERGY LLC HOUSTON, July 11, 2023 /PRNewswire/ -- 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.
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