HNR Acquisition Corp, an independent oil and gas company operating in the Permian Basin, made headlines with the revelation of potential untapped oil reserves in the prolific Grayburg and San Andres oil zones. The announcement triggered a notable dip in the company’s stock, which commenced trading at $3.91 on Wednesday morning, down from a previous closing of $4.47.
At the time of this publication, HNR Acquisition Corp stock (HNRA) has witnessed a decline.
HNR Acquisition Corp
Current Price: $2.83
Change : -1.64
Change (%): (-36.73%)
Volume: 633.2K
Source: Tomorrow Events Market Data
The company’s management recently conducted a series of meetings with independent petroleum consultants to review well log data and historical completion data. As a result, it was revealed that there may be 34 million barrels of oil accessible in the Grayburg and San Andres zones by simply adding perforations to existing wells on the company’s leasehold. This revelation comes in addition to the proven reserves previously announced.
The Grayburg-Jackson field, where the potential reserves are located, is currently producing crude oil and natural gas primarily from waterflood operations in the Seven Rivers zone. Cobb and Associates, third-party engineers, have updated the reserve report for the end of 2023, confirming proven reserves of approximately 15.4 million barrels of oil and 3.5 billion cubic feet of natural gas.
Commenting on the announcement, Dante Caravaggio, President and CEO of HNR Acquisition Corp, expressed optimism about the potential for additional oil recovery. He highlighted estimates of approximately 956 million barrels of original-oil-in-place in the Grayburg and San Andres intervals.
Jesse Allen, Vice President of Operations at HNR Acquisition Corp, emphasized the strategic importance of optimizing production through continued waterflood optimization and increased drilling in the Grayburg-San Andres sands. Allen believes these efforts could lead to a significant increase in daily production and revenue for the company.
Joseph V. Salvucci Sr., Chairman of the Board, reflected on the strategic acquisition of the Grayburg-Jackson field and expressed excitement about the additional potential oil recovery. He emphasized the game-changing nature of the discovery, highlighting its significance in increasing shareholder value and driving revenue and earnings growth for years to come.
HNR Acquisition Corp’s unveiling of potential untapped oil reserves underscores the company’s strategic vision and commitment to maximizing value from its oil and gas assets.
