HNR Acquisition Corp. (HNRA) Completes Pogo Resources Deal

HNR Acquisition Corp. (NYSE:HNRA) announced this afternoon that it has completed its business combination with oil developer Pogo Resources.

The deal was originally approved by shareholders at a meeting held on November 13 and stockholders holding 4,063,777 shares out of a possible 4,509,403 shares of HNRA’s common stock exercised their right to redeem their shares.

While the final amount of the funds to be removed from the account has not yet been disclosed, the preliminary calculations are that approximately $44.1 million, or $10.86 per share, will be removed to pay such holders.

Pogo Resources expects to use its free cash flow and growth to pay down debt and build a strong balance sheet. Additionally, the combined company intends to institute a hedging program to protect its profits while it grows and develops oil fields.

Following shareholder approval, the SPAC entered into further agreements with Meteora earlier this week, including a non-redemption agreement to reverse the redemption of up to the lesser of 600,000 shares and an exchange agreement with certain holders of promissory notes which accrued interest at a rate of 15% per annum.

The common stock of the combined company will begin trading on the NYSE American under the current symbol “HNRA”.

HNR inked its membership purchase agreement with Pogo Resources back in January. In August, the SPAC reworked the combination to purchase all of the equity interests of Pogo Resources, revising the purchase price to an aggregate amount of $63 million in cash plus two million shares of a new class of Class B Common Stock and two million units in the company’s newly-formed subsidiary.

Pogo Resources’ fields comprise 13,700 leasehold acres, 343 producing wells and 207 injection wells for a total of 550 wells on the properties. Management expects to increase daily production to nearly 4,000 barrels of oil and oil equivalent in the next three years. The company generated $35 million in revenues with solid cash flow and earnings in 2022.