HOUSTON, TX / ACCESSWIRE / September 12, 2024 / HNR Acquisition Corp (NYSE American:HNRA) (the "Company" or "HNRA") is an independent upstream energy company with oil and gas properties in the Permian Basin. Today, the Company announces that the field is rolling out improved automation techniques that will lead to operational efficiencies and enhanced oil production.
The Company has contracted with a software provider to pilot test a state-of-the-art software application ("app") that will allow the field lease operator to use a single App versus multiple apps, which will lead to enhanced operations. The pilot test will be with two of our field operators, and then roll-out to all our field operators.
Key attributes of the automation include:
Consolidating into a single application for the tool to be used by the operators
Single entry input
ProdView production inputs
Sensor data (TP & CP)
XSPOC data from pumping wells
Import pressure, rate and volume data from each Water Station
Import tank gauge data from TankLogix
Gas meter readings
Replace Microsoft Teams as our daily field communicator to tie communications to locations, tasks, actions, and outcomes
Optimize field team routes to our wells and tank batteries to reduce miles driven and fuel consumption
Operate by exception by identifying wells that are not operating normally to accelerate remediation and maintain or increase production
Provide a single source to order parts for maintenance to optimize supply chain spend
Identify opportunities for full automation based on existing infrastructure and telemetry
Key cost savings include:
Improved safety with real time monitoring and alarms of critical systems
Improved uptime by having all producing wells alarmed so an operator does not lose time to address and correct a problem
Improved environmental compliance with a greatly reduced risk of mishaps by having all critical tank batteries and satellites monitored and alarmed
Less driving time to "check up on things" when you have a dashboard and cameras to monitor field operations
Efficiencies that will allow the field crews to bring new wells into production without additional costs
"This will greatly enhance the field operations. The field team will be able to identify problems sooner and initiate corrective actions quicker. These efficiencies and the field route optimization will allow us to deploy the field crews to perform other efforts as we increase our field development and bring new wells into production," said Jesse Allen, the Vice President of Operations.
The implementation of AI automation improvements in the field follows a number of initiatives undertaken by HNRA to reduce OPEX, improve efficiencies and increase production.
On August 21, 2024, HNRA announced it has commenced a chemical treatment program where the initial results of the pilot program have been successful and very encouraging with an additional production of 80-plus BOPD.
On August 15, 2024, the Company announced: it has upgraded satellite test stations for improving overall reliability; has improved and increased electrical capacity and reliability with the completion of a number of electrical upgrades; and infrastructure improvements and upgrades with flow line improvements which will improve consistency in operations and will result in improved production from our producing wells.
About the Oil Field Property
In November 2023, the Company acquired LH Operating, LLC ("LHO") including its holdings in New Mexico of oil and gas waterflood production comprising 13,700 contiguous leasehold acres, 342 producing wells and 207 injection wells situated on 20 federal and 3 state leases in the Grayburg-Jackson Oil Field. The Grayburg-Jackson Oil Field is located on the Northwest Shelf of the prolific Permian Basin in Eddy County, New Mexico.
Leasehold rights of LHO, now a wholly owned subsidiary of the Company, include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2023 reserve report from our third-party engineer, William H. Cobb and Associates, Inc. ("Cobb"), reflects LHO to have proven reserves of approximately 15.4 million barrels of oil and 3.5 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") in the LHO leasehold is approximately 876 million barrels of oil in the Grayburg and San Andres intervals and 80 million barrels in the Seven Rivers interval for a total OOIP of approximately 956,000,000 barrels of oil.
Our primary production is currently from the Seven Rivers zone. In addition to proven reserves, the Company believes we may access an additional 34 million barrels of oil by adding perforations in the Grayburg and San Andres formations. With proven oil reserves of over 15 million barrels, combined with the potential 34 million additional barrels from the Grayburg and San Andres zones, LHO should produce oil and a revenue stream for more than two decades with a slow decline rate.
About HNR Acquisition Corp
HNRA is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in the United States. HNRA's long-term goal is to maximize total shareholder value from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development, production enhancement, and other exploitation efforts on its oil and natural gas properties.
HNRA's Class A Common Stock trades on the NYSE American (NYSE American: HNRA) and our public warrants trade on the NYSE American (NYSE American: HNRAW). For more information on HNRA, please visit the Company's website: https://www.hnra-nyse.com/
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. 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. 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