The oil and gas sector is almost always on the radars of investors due to the sort of returns it can often generate. One of the companies that could well be looked into at this point is Houston Natural Resources Corp. (OTC:HNRC), now known as Cunningham Natural Resources Corp. On September 21, the company announced that it had completed the sale of its subsidiary assets, which had an enterprise value to the tune of $18 million.
The stock ended higher by 4.84% to $0.0650 in Thursday’s trading session with more than 664K shares traded, above its average volume of 393K shares.
Owing to the sale, the company managed to earn $0.15 per share. The company revealed that it had resulted in strong gains as well as advances. The company went into an agreement to exchange its convertible preferred stock for assets in Houston Natural Resources Inc. The preferred stock had a market value of $18 million. It was further revealed that it had been successful in exchanging the reserves of Houston Natural Resources Inc. for $352 million worth of Cunningham Energy LLC assets without any further dilution.
Last week, the company entered the news cycle after it emerged on September 18 that Houston Natural Resources Corp. had completed the acquisition of a gold mining asset. The company announced that it had acquired Cunningham Mining Ltd. (CML), and there was the possibility of raising the ownership stake over time.
In the same news release, it was also announced that CML had acquired the placer claims located in the British Columbia Mineral Title Registry in an area spanning as much as 573.3 acres, as well as the associated authorizations and permits in the Skeena Mining Division in the area called the Golden Triangle. The company also revealed that the Nugget Trap Placer had been tested in the 1930s, but it had not been mined commercially for silver and gold owing to commodity prices and its faraway location.