HNRC Targets $100 Million Expansion
HOUSTON, June 2, 2021— Houston Natural Resources Corp. (OTC: HNRC) (“HNR or the Company”) confirmed today that it is targeting acquisitions up to $100 million in acquisitions in the oil and gas sector through its subsidiary Houston Natural Resources, Inc (‘HNRI”).
This would add more than $6 per share to HNRI’s independently appraised value of $69,000,000 in proven reserves that are currently valued at $4.47 per share.
Oil prices have been rising driven by expectations that recovering demand with summer travel and reopening economies will easily accommodate the gradual increase in OPEC+ production.
Oil prices rose sharply on Tuesday, with Brent topping $71 per barrel, the highest level in more than two and a half years. “The demand growth is pretty OK, the OPEC+ discipline is very good, inventories are going down,” Fereidun Fesharaki, chairman of consultants FGE, said in a Bloomberg television interview. “If there is no Iranian shadow on the market, prices could hit $75-$80 by the middle of the third quarter.”
HNRI has acquired approximately 2,800 acres of oil and gas leases located in the Halff Oil Field in Crockett County, Texas. HNRI is currently reviewing possible acquisitions of producing oil and gas properties in addition to operating its water treatment facilities operated by its subsidiary HNR Oil Services, LLC.
The Company has previously announced that it intends to focus on realizing the value on the total of $9.67 per share in assets held by its subsidiaries for the benefit of the shareholders. The strategy may include asset sales, a spin off of one or more of its subsidiaries and dividends to shareholders.
The company projects total combined revenues of $23 million and $12 million in earnings for the year ending December 31, 2021. The forward earnings per share are projected to be $0.77c per share. According to industry research, the S&P 500 Integrated Oil & Gas Index, forward earnings, & valuation, as of May 25,2021, is between 8x and 14x forward earnings. This would imply a target value for HNRC of $6.16 per share and $10.78 per share.
HNRC is a diversified holding company that has two subsidiaries, Houston Natural Resources, Inc (“HNRI”) and Worldwide Diversified Holdings, Inc (“WDHI”). HNRI owns oil and gas properties and a waste-water treatment plant. WDHI has business operations that provide products & services in the Information Technology & Healthcare markets. HNRC anticipates up listing onto OTCQX or major exchange. The company is preparing an SEC filing to become an SEC reporting company.
About Houston Natural Resources Corp
Houston Natural Resources Corp (http://www.HoustonNaturalResources.com) (OTC:HNRC). The Company is dedicated to increasing shareholder value through developing natural resources with state-of-the-art innovative technologies in tandem with sustainable environmental services of toxic oil field waste disposal and recycling that are environmentally safe and socially responsible.
About Worldwide Diversified Holdings, Inc.
Worldwide Diversified Holdings, Inc.(www.wdhinc.net). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in information technology and healthcare.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.
Houston Natural Resources Corp.
757-707-4563, E-mail: frank@HoustonNaturalResources.com
Houston Texas USA.