HOUSTON, Aug. 9, 2023 /PRNewswire/ -- Houston Natural Resources Corp (OTC: HNRC) ("HNRC or the Company") announced today that it has filed with FINRA for a name change to Cunningham Natural Resources Corp ("CNRC") having recently 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 a 100% interest in Cunningham Energy, LLC. 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.
Cunningham Natural Resources Corp 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 completed the 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.
The company has completed the spin-off of its non-energy assets to Worldwide Diversified Holdings, Inc and filed for registration and expect to be trading in 2023. The company will keep the shareholders updated with any changes in the process.
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