Houston Natural Resources (OTC: HNRC) News Spurs Renewed Interested Stock to Watch
There have been a number of companies that have come into focus among investors for various reasons, and one of the companies that may be worth looking into at this point is Houston Natural Resources (OTC: HNRC). On December 11, the company made an announcement with regards to HNR Acquisition Corp., its portfolio company.
It was revealed that HNR Acquisition Corp. had completed a business combination on November 15 through the purchase of the entire equity interest in POGO Resources LLC and LH Operating LLC, its subsidiary. However, it ought to be noted that HNR Acquisition has become an independent oil and natural gas company in its own right. It would be involved in the development, acquisition, exploration, and production of oil and gas properties situated in the Permian Basin in New Mexico. The assets of HNR Acquisition Corp. currently include its holdings in the Grayburg-Jackson oil field, situated in the historically prolific Permian Basin.
In this context, it ought to be noted that LH Operating LLC has been a privately owned company and has operated the Grayburg-Jackson field since 2020 after having completed the acquisition the previous year. It was noted in the news release that the baseline production level in 2020 was around 500 barrels of oil equivalent per day. Since then, production has increased at an impressive pace.
In the nine-month period from January 2023 through September 2023, the production level had gone up to 1388 barrels of oil equivalent per day. LH Operating also reported revenues to the tune of $20.3 million and $3.9 million in the form of net income for the first nine months of 2023. Additionally, it generated positive cash flow as well. At the end of the period, the total value of the assets with LH Operating stood at $70.4 million.
