Despite a modest 0.23% rise during the regular session on Thursday, shares of HNR Acquisition Corp (NYSE:HNRA) have continued their upward trajectory from the beginning of the week. The stock experienced a remarkable after-hours increase of 9.01%, reaching $2.36. This boost followed the announcement of a new production enhancement initiative.
HNR Acquisition completed the Pilot Program for Oil Production
HNR Acquisition Corp has reported a successful uptick in oil production thanks to a chemical stimulation treatment program initiated in late June 2024. This program involves the application of chemical treatments to revitalise wells that have not been maintaining previous production levels. The treatment effectively removes scale build-up, which impedes the flow of oil.
The company launched this program with a pilot phase targeting 24 producing wells. Upon validating the efficacy of this method, HNR Acquisition plans to extend the treatment to approximately 100 additional wells in the initial expansion phase. Subsequent evaluations will address the remaining 342 wells.
Methodology and Results
The chemical stimulation process enhances oil production by facilitating a greater flow of hydrocarbons from the reservoir into the wellbore. Each treatment batch, consisting of 3 to 6 wells, involves an initial injection of a paraffin solvent or dispersant, followed by an acid solution applied two days later.
Early results from the pilot program have been promising, showing an increase of over 80 barrels of oil per day (BOPD). Based on these initial outcomes, the company anticipates that the full chemical treatment program will boost production by 250 BOPD by the end of 2024.
Future Plans of HNRA and their Cost-Effectiveness
HNR Acquisition Corp is set to expand its chemical stimulation program to an additional 100 wells, with plans to apply this treatment to a total of 342 wells. The chemical solutions provided by Jacam Catalyst, tailored specifically for HNR Acquisition’s needs, offer a safer, more efficient, and cost-effective approach to enhancing production.
The cost of the treatments remains relatively low, and the results are expected to last approximately six months before requiring retreatment or alternative stimulation methods.
