HNR Acquisition Corp. announced 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 $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.