Financial Performance - Record net income of $5.6 million for the third quarter of 2025, a significant turnaround from previous losses [1] - Total revenue for Q3 2025 was $4.36 million, showing consistency with prior quarters despite minor fluctuations [11] - Operations expenses increased to $3.54 million in Q3 2025, up from $2.85 million in Q2 2025 [11] - Shareholder equity increased by $22.7 million, driven by the retirement of preferred shares and gains from funding transactions [1][17] Debt and Equity Management - The company retired all $41 million of senior and seller debt, significantly improving its balance sheet [1][17] - A one-time gain of $13.4 million was recorded from asset sales as part of the funding and farmout agreements [16] Drilling and Production Plans - The company expects to drill up to 90 horizontal wells at a cost of $3.5 million to $4.0 million per well, with initial production rates projected at 300 to 500 barrels of oil per day [7] - Cumulative capital investment by Virtus and LHO is expected to exceed $300 million over the life of the horizontal drilling project [7] - The company anticipates gross oil production to exceed 20,000 barrels of oil per day from the horizontal drilling program [7] Reserves Information - The Grayburg-Jackson Field has proven reserves estimated at approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas [18]
HNR Acquisition p(HNRA) - 2025 Q3 - Quarterly Results