Houston Natural Resources has signed a Letter of Intent for a transaction with Cunningham Energy.
HNRC in a press releasse said it will form a SPAC with cash and securities for the acquisition of interests in Cunningham Energy with the purpose of acquiring, exploring, and producing oil and gas in the United States and Canada. The proposed investment is for up to $100 million in cash and securities and subject to the completion of due diligence and financing. The parties are committed to closing the transaction by June 30.
Under the Letter of Intent additional future development funding for up to $600 million from SPAC and PIPE follow-on transactions are also planned.
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 plus net acres of leases. Cunningham Energy was formed in 2008 and was a pioneer of shallow horizontal oil drilling in West Virginia starting in 2014.
Houston Natural Resources is also the sponsor of HNR Acquisition, which raised $86.25 million last month in an IPO. The SPAC’s focus remains on the North American energy industry.
The SPAC’s CEO, Director and Chairman Donald H. Goree founded Houston Natural Resources. Read more.
