EON Resources Inc. Announces Completion of Preliminary Assessment Which Could Potentially Yield Up to 20 Million Untapped Barrels of Oil via Horizonal Drilling in the Lower Intervals of the San Andres Formation
EON Resources Inc. (NYSE:EONR) has completed a preliminary assessment of horizontal drilling potential in the lower San Andres reservoirs at its Grayburg-Jackson Field in Eddy County, New Mexico. The assessment reveals potential recovery of 20 million barrels of oil and 16 billion cubic feet of natural gas, supplementing current waterflood program reserves of 15 million barrels of oil.
The study, covering approximately 13,700 acres, suggests optimal exploitation through 5,000-foot horizontal wells. Based on analog field data, each well could yield an average initial production of 436 BOPD and estimated ultimate recovery of 397,000 barrels per well. With a typical well cost of $3.75 million, breakeven requires 156,000 barrels.
The company has identified 50 well locations with projected metrics including: ROI of 3.3x, IRR of 120.1%, and discounted cash flow at 10% of $6.60MM. EON plans to permit 12 San Andres horizontal drilling locations in late 2025 or early 2026.
EON Resources Inc. (NYSE:EONR) ha completato una valutazione preliminare del potenziale di perforazione orizzontale nei serbatoi inferiori di San Andres nel suo campo Grayburg-Jackson nella contea di Eddy, Nuovo Messico. La valutazione rivela un potenziale recupero di 20 milioni di barili di petrolio e 16 miliardi di piedi cubi di gas naturale, integrando le riserve attuali del programma di iniezione d'acqua di 15 milioni di barili di petrolio.
Lo studio, che copre circa 13.700 acri, suggerisce un sfruttamento ottimale attraverso pozzi orizzontali di 5.000 piedi. Basandosi su dati di campi analoghi, ogni pozzo potrebbe generare una produzione iniziale media di 436 BOPD e un recupero finale stimato di 397.000 barili per pozzo. Con un costo tipico di pozzo di 3,75 milioni di dollari, il punto di pareggio richiede 156.000 barili.
L'azienda ha identificato 50 posizioni per pozzi con metriche previste che includono: ROI di 3,3x, IRR del 120,1% e flusso di cassa scontato al 10% di 6,60 milioni di dollari. EON prevede di autorizzare 12 posizioni di perforazione orizzontale di San Andres entro la fine del 2025 o all'inizio del 2026.
EON Resources Inc. (NYSE:EONR) ha completado una evaluación preliminar del potencial de perforación horizontal en los reservorios inferiores de San Andrés en su campo Grayburg-Jackson en el condado de Eddy, Nuevo México. La evaluación revela un potencial de recuperación de 20 millones de barriles de petróleo y 16 mil millones de pies cúbicos de gas natural, complementando las reservas actuales del programa de inyección de agua de 15 millones de barriles de petróleo.
El estudio, que abarca aproximadamente 13,700 acres, sugiere una explotación óptima a través de pozos horizontales de 5,000 pies. Basado en datos de campos análogos, cada pozo podría generar una producción inicial promedio de 436 BOPD y una recuperación final estimada de 397,000 barriles por pozo. Con un costo típico de pozo de $3.75 millones, el punto de equilibrio requiere 156,000 barriles.
La empresa ha identificado 50 ubicaciones para pozos con métricas proyectadas que incluyen: ROI de 3.3x, IRR de 120.1% y flujo de caja descontado al 10% de $6.60MM. EON planea permitir 12 ubicaciones de perforación horizontal de San Andrés a finales de 2025 o principios de 2026.
EON Resources Inc. (NYSE:EONR)는 뉴 멕시코 에디 카운티의 그레이버그-잭슨 필드에서 산 안드레스 저수지의 수평 시추 가능성에 대한 초기 평가를 완료했습니다. 평가 결과 2천만 배럴의 원유와 160억 입방 피트의 천연가스의 잠재적 회수가 드러났으며, 이는 현재의 1천5백만 배럴의 원유를 포함하는 물 주입 프로그램의 저장량을 보완합니다.
이 연구는 약 13,700 에이커를 포함하며, 5,000피트 수평 우물을 통한 최적의 개발을 제안합니다. 유사한 필드 데이터를 기반으로, 각 우물은 평균 초기 생산량 436 BOPD와 우물당 397,000배럴의 최종 회수량을 예상할 수 있습니다. 일반적인 우물 비용이 375만 달러인 경우, 손익 분기점은 156,000배럴이 필요합니다.
회사는 ROI 3.3배, IRR 120.1%, 10% 할인된 현금 흐름 $6.60MM을 포함한 예상 지표로 50개의 우물 위치를 확인했습니다. EON은 2025년 말 또는 2026년 초에 12개의 산 안드레스 수평 시추 위치를 허가할 계획입니다.
EON Resources Inc. (NYSE:EONR) a terminé une évaluation préliminaire du potentiel de forage horizontal dans les réservoirs inférieurs de San Andres dans son champ Grayburg-Jackson dans le comté d'Eddy, au Nouveau-Mexique. L'évaluation révèle un potentiel de récupération de 20 millions de barils de pétrole et 16 milliards de pieds cubes de gaz naturel, complétant les réserves actuelles du programme d'injection d'eau de 15 millions de barils de pétrole.
L'étude, couvrant environ 13 700 acres, suggère une exploitation optimale grâce à des puits horizontaux de 5 000 pieds. Sur la base de données de champs analogues, chaque puits pourrait produire en moyenne une production initiale de 436 BOPD et une récupération finale estimée de 397 000 barils par puits. Avec un coût typique de puits de 3,75 millions de dollars, le seuil de rentabilité nécessite 156 000 barils.
L'entreprise a identifié 50 emplacements de puits avec des indicateurs projetés incluant : ROI de 3,3x, IRR de 120,1% et flux de trésorerie actualisé à 10% de 6,60 millions de dollars. EON prévoit d'autoriser 12 emplacements de forage horizontal à San Andres d'ici fin 2025 ou début 2026.
EON Resources Inc. (NYSE:EONR) hat eine vorläufige Bewertung des Potenzials für horizontale Bohrungen in den unteren San-Andres-Reservoirs in seinem Grayburg-Jackson-Feld im Eddy County, New Mexico, abgeschlossen. Die Bewertung zeigt ein potenzielles Fördervolumen von 20 Millionen Barrel Öl und 16 Milliarden Kubikfuß Erdgas, das die aktuellen Reserven des Wasserflutprogramms von 15 Millionen Barrel Öl ergänzt.
Die Studie, die etwa 13.700 Acres umfasst, schlägt eine optimale Ausbeutung durch 5.000 Fuß lange horizontale Bohrungen vor. Basierend auf Daten ähnlicher Felder könnte jedes Bohrloch eine durchschnittliche Anfangsproduktion von 436 BOPD und eine geschätzte endgültige Förderung von 397.000 Barrel pro Bohrloch liefern. Bei typischen Bohrkosten von 3,75 Millionen Dollar erfordert der Break-even-Punkt 156.000 Barrel.
Das Unternehmen hat 50 Bohrstandorte identifiziert, deren projizierte Kennzahlen Folgendes umfassen: ROI von 3,3x, IRR von 120,1% und diskontierter Cashflow bei 10% von 6,60 Millionen Dollar. EON plant, bis Ende 2025 oder Anfang 2026 12 Standorte für horizontale Bohrungen in San Andres zu genehmigen.
- Potential recovery of 20M oil barrels and 16B cubic feet of gas
- High IRR of 120.1% on horizontal drilling program
- Strong ROI of 3.3x per well
- Initial production rate of 436 BOPD per well
- 50 identified well locations with above-breakeven recovery potential
- Superior reservoir quality compared to analog fields
- High well cost of $3.75M each
- 156,000 barrels needed for breakeven per well
- Current production less than 5% of original oil in place
- Drilling program pending regulatory permits
- Assessment is preliminary and final results may vary
Insights
EON Resources has completed a preliminary assessment suggesting significant untapped potential in the lower San Andres formation of their Grayburg-Jackson Field. The company estimates
The assessment is based on comparative analysis with analog fields, suggesting each proposed 5,000-foot horizontal well could potentially yield approximately
While EON has identified 50 potential drilling locations, several critical factors require investor attention:
- This represents a preliminary assessment - not proven reserves or even contingent resources
- The recovery estimates are based on analog fields, not confirmed through actual drilling on EON's acreage
- Actual development appears at least 9-12 months away, dependent on permitting
- The capital requirements for 50 wells (
$187.5 million ) vastly exceed EON's current market capitalization ($7.5 million )
EON's immediate focus remains on expanding their Seven Rivers waterflood program while preparing to permit 12 initial horizontal wells. The significant capital requirements relative to the company's size suggest potential substantial dilution or partnership arrangements would likely be necessary to fully develop this opportunity.
HOUSTON, TX / ACCESS Newswire / February 26, 2025 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company"), an independent upstream energy company with oil and gas properties in the Permian Basin, announced today that it has completed a "preliminary assessment" of the horizontal potential of the lower San Andres (Jackson and Slaughter) reservoirs in the Grayburg-Jackson Field that it operates in Eddy County, New Mexico.
This preliminary assessment reveals possible recovery of an additional 20 million barrels of oil and 16 billion cubic feet of natural gas in the lower intervals of the San Andres. The Company's current, on-going waterflood program has proven reserves of 15 million barrels of oil and 3 billion cubic feet of natural gas.
This preliminary assessment is the first step in an ongoing, comprehensive, multi-disciplinary analysis of the field incorporating petrophysics, geology and engineering data. The preliminary assessment uses modern geoscience software and workflows, which will ultimately lead to a 3D geologic model incorporating extensive well control. The ongoing multi-disciplinary work indicates the presence of previously unrecognized intervals and is expected to identify new drilling locations.
The preliminary assessment indicates that the significant volumes of stranded oil present in the lower San Andres beneath the Company's approximately 13,700-acre position is best exploited by drilling 5,000 foot horizontal wells.
Highlights of the work to date in the Grayburg-Jackson Field include:
Total cumulative production of the San Andres reservoirs in the Grayburg-Jackson Field is less than 5 percent of the estimated original oil in place ("OOIP").
The review of horizontal drilling of the largest analog field in the San Andres trend was based on only a few open hole logs, which indicated unreliable porosity and water saturation data. Further work has shown that the reservoir in the analog field is highly heterogenous.
In contrast, the ongoing EON integrated reservoir characterization study of our Grayburg-Jackson field is based on over 250 wells in our field area, and identified the optimal and low risk locations to drill horizonal wells first.
The wells in the largest analog field in the San Andres trend had an average initial production ("IP") of 436 barrels of oil per day ("BOPD") and an average estimated ultimate recovery ("EUR") of 79.4 barrels of oil per foot. Using the same parameters, a 5,000-foot horizonal or lateral well in the Grayburg-Jackson field would have an average EUR of 397,000 barrels of oil per well. We believe our recoveries to be higher, given the superior reservoir quality beneath our acreage, but we cannot guarantee that such recoveries would not be higher or at the same levels.
Assuming a typical well cost of
$3.75 million , we believe it would take approximately 156 thousand barrels of oil to achieve breakeven.While the evaluation continues, the first 50 identified well locations are expected to have recoveries well above the breakeven calculation.
Size of the Prize:
Assuming an OOIP similar to the analog field mentioned above, the 50 well locations currently identified would have a total expected recovery of approximately 20 million barrels of oil and 16.4 billion cubic feet of natural gas. Considering the higher quality reservoir within our acreage, we would expect higher recoveries.
With cost of
$3.75 million per average San Andres horizontal well in the Grayburg-Jackson field and an average EUR of 397,000 barrels of oil, the current metrics are: ROI = 3.3; IRR = 120.1 percent; total undiscounted cash flow =$12.42 million ; and a discounted cash flow at 10 percent =$6.60 M M. Given our reservoir rock, we believe we would have superior metrics.The current analysis assumes no contribution to production from past waterflood pressure support in the Jackson and Slaughter reservoirs.
"We are focused on expanding our successful Seven Rivers waterflood as a priority this year, while setting the stage for a new phase of growth by permitting 12 San Andres horizontal drilling locations in late 2025 or early 2026," said Jesse Allen, VP of Operations. "This is based on current Bureau of Land Management permitting, which we believe will increase under the Trump administration."
The descriptions set forth above are qualified in their entirety by the current assessment, which is downloadable from our website under the Grayburg-Jackson Oil Field section at: Assessment Study - Horizonal Drilling
About the Oil Field Property
In November 2023, the Company acquired LH Operating, LLC ("LHO") including its holdings in New Mexico of oil and gas waterflood production comprising 13,700 contiguous leasehold acres, 342 producing wells and 207 injection wells situated on 20 federal and 3 state leases in the Grayburg-Jackson Oil Field. The Grayburg-Jackson Oil Field is located on the Northwest Shelf of the prolific Permian Basin in Eddy County, New Mexico.
Leasehold rights of LHO, now a wholly owned subsidiary of the Company, include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2023 reserve report from our third-party engineer, William H. Cobb and Associates, Inc. ("Cobb"), reflects LHO to have proven reserves of approximately 15.4 million barrels of oil and 3.5 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") in the LHO leasehold is approximately 876 million barrels of oil in the Grayburg and San Andres intervals and 80 million barrels in the Seven Rivers interval for a total OOIP of approximately 956,000,000 barrels of oil.
Our primary production is currently from the Seven Rivers zone. In addition to proven reserves, the Company believes it may access an additional 34 million barrels of oil by adding perforations in the Grayburg and San Andres formations. With proven oil reserves of over 15 million barrels, combined with the potential 34 million additional barrels from the Grayburg and San Andres zones, LHO should produce oil and a revenue stream for more than two decades with a low decline rate.
About EON Resources Inc.
EON is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in the United States. EON's long-term goal is to maximize total shareholder value from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development, production enhancement, and other exploitation efforts on its oil and natural gas properties.
EON's Class A Common Stock trades on the NYSE American Stock Exchange (NYSE American: EONR) and the Company's public warrants trade on the NYSE American Stock Exchange (NYSE American: EONR WS). For more information on EON, please visit the Company's website: https://eon-r.com/
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," "may," "might," "plan," "possible," "should" and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Contact Information
Michael J. Porter
Investor Relations - President, PORTER, LEVAY & ROSE, INC.
mike@plrinvest.com
SOURCE: EON Resources Inc.
View the original press release on ACCESS Newswire
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