Houston Natural Resources rebrands with Cunningham Energy acquisition
(WO) – Houston Natural Resources Corp has completed the acquisition of a 100% interest in Cunningham Energy, LLC.
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 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. The investment focus will be global with sustainability at the core of the strategy.
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 and 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 and 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 U.S. 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.