Published: December 14, 2023 |

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Houston Natural Resources said its portfolio company HNR Acquisition Corp. (HNRA) has completed a business combination by purchasing all the equity interests in Pogo Resources and its subsidiary, LH Operating (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 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 U.S.

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.

Following the acquisition, all of the experienced field personnel of LHO who achieved these results have remained with the company.

HNRC anticipates declaring a dividend of its HNRA position in 2024 subject to existing lock up agreements, final board approval, and any regulatory reviews being completed. 

Houston Natural Resources stands as a versatile energy enterprise with stakes in both oil and gas. Notably, the company has successfully obtained full ownership, a 100 percent interest, in Cunningham Energy boasting appraised reserves totaling $352 million. Additionally, Houston Natural Resources holds minority investments in Rhino Energy, CE Energy Sponsors, and HNR Acquisition Corp. Demonstrating a commitment to growth, the company remains proactive in its pursuit of new opportunities within the energy and energy transitions sectors, all with the overarching goal of delivering enhanced value to its shareholders.

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