HNR Acquisition Corp (HNRA), a Delaware corporation, successfully completed the acquisition of Pogo Resources, LLC, a company specializing in exploration and production in the Permian Basin, on November 15, 2023. The transaction involved a purchase of membership interests and was settled through a mix of cash, Class A and Class B Common Stock shares, promissory notes, and other considerations. To facilitate the acquisition, HNRA amended its Certificate of Incorporation to increase its authorized shares and reclassify its common stock. The funding for the acquisition came from HNRA's trust account cash, a senior secured term loan, and other financing agreements. HNRA also entered into several related agreements, such as a registration rights agreement, an option agreement, and a backstop agreement. The acquisition...Show More

HNR Acquisition Corp (HNRA), a Delaware corporation, successfully completed the acquisition of Pogo Resources, LLC, a company specializing in exploration and production in the Permian Basin, on November 15, 2023. The transaction involved a purchase of membership interests and was settled through a mix of cash, Class A and Class B Common Stock shares, promissory notes, and other considerations. To facilitate the acquisition, HNRA amended its Certificate of Incorporation to increase its authorized shares and reclassify its common stock. The funding for the acquisition came from HNRA's trust account cash, a senior secured term loan, and other financing agreements. HNRA also entered into several related agreements, such as a registration rights agreement, an option agreement, and a backstop agreement. The acquisition includes around 13,700 gross acres in the Permian Basin, with Pogo holding a 100% working interest. This strategic move is anticipated to boost HNRA's production and cash flow by developing proven reserves. HNRA, classified as an 'emerging growth company,' is subject to various regulations and has provided pro forma financial information to reflect the acquisition's impact. The company's future growth is expected to hinge on production success, commodity prices, operating costs, and the acquisition of additional quality acreage.