HOUSTON, TX / ACCESSWIRE / October 10, 2023 / HNR Acquisition Corp (NYSE American:HNRA) (the "Company" or "HNRA") announces that the company has entered into a binding commitment for a $28 million senior secured term loan with First International Bank & Trust (FIBT) headquartered in Watford City, North Dakota.
The Senior Secured Term Loan
The $28 million secured credit facility will be used to fund a portion of the $90 million purchase price for the acquisition of Pogo Resources, LLC and its wholly owned subsidiary LH Operating, LLC, owner of the Grayburg-Jackson oil field. The Grayburg-Jackson field is located in the Permian Basin Eddy County, New Mexico. The Grayburg-Jackson oil field has 95 active waterflood patterns with an additional 158 patterns identified. HNRA management expects to increase the production rate by 2½ times the current production rate of 1400 barrels of oil equivalent (BOE) per day. The three (3) year development and production plan of the Company for the field is to increase the level of production in the Grayburg-Jackson oil field to a minimum level that would exceed 4,000 BOE per day.
"We are extremely fortunate to be involved with FIBT and its experienced management team. Their understanding of our business model and their first-hand knowledge of the petroleum business means a great deal to HNRA. Their acknowledgement of our business plan and models will help us create the foundation for building a growing oil and gas business", said Diego "Dean" Rojas, an Independent Director of the Company with substantial industry experience.
"We take pride in our relationship-based business model and the way we build long-term trust with companies like HNRA. They are a company we expect to have a long and rewarding relationship with. We remain well capitalized and positioned to serve our customers and communities for generations to come", said Steve Stenehjem, CEO/Chairman of First International Bank and Trust. "Over our 113-year history we've built the bank on relationships between our employees and our customers", he continued.
About First International Bank and Trust
FIBT is headquartered in Watford City, North Dakota with offices in North Dakota, South Dakota, Minnesota and Arizona. FIBT specializes in assisting businesses and professional owners with complex oil and gas related issues and transactions. Their Mineral and Land Services Division team of experts includes petroleum engineers, land managers, and oil and gas attorneys with extensive industry experience. They have a strong pulse on the market and are well connected in the industry.
FIBT is supporting HNRA with their Reserves Based Lending program giving the Company the ability to use future production as collateral to fund today's needs. FIBT supports companies in the industry through the different phases within the lifetime of an oil and gas project including exploration, development, production, plateau, decline, and decommissioning, all of which require flexibility in terms of funding.
About HNR Acquisition Corp
HNRA is a blank check company (otherwise known as a special purpose acquisition company or SPAC) formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.
For more information on HNRA, the acquisition and the transaction, please visit the Company website: https://www.hnra-nyse.com/
Forward-Looking Statements
This press release includes "forward-looking statements" that involve risks and uncertainties that could cause actual results to differ materially from what is expected, including the funding of the Trust Account to further extend the period for the Company to consummate an initial business combination, if needed. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," "may," "might," "plan," "possible," "should" and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. In addition, please refer to the Risk Factors section of the Company's Form 10-K as filed with the SEC on March 31, 2023 for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
[email protected]
SOURCE: HNR Acquisition Corp