EON Resources Inc.- Oil Production Increases
EON Resources Inc. (NYSE American:EONR) announced successful infrastructure improvements and upgrades, increasing daily oil production to over 1,000 gross barrels of oil per day (BOPD) from a baseline of 925 BOPD. The company also increased water injection by 50%, which is expected to improve oil production in the coming months. Key highlights include:
- A chemical/acidizing treatment program on 24 wells, resulting in an 80 BOPD increase at a cost of $5,500 per well and a payback period of less than 2 months
- Plans to expand the chemical treatment program to 50-75 more wells and recomplete 20 wells starting October 1st
- Innovative use of fly ash instead of sand for fracture stimulation, expected to enhance well productivity and reduce costs
- Future plans to stimulate unperforated intervals in San Andres and consider infield drilling to reduce pattern spacing
EON expects these improvements to increase production and revenue in the near future.
EON Resources Inc. (NYSE American:EONR) ha annunciato miglioramenti e aggiornamenti infrastrutturali di successo, aumentando la produzione giornaliera di petrolio a oltre 1.000 barili di petrolio lordi al giorno (BOPD) rispetto a un livello di partenza di 925 BOPD. L'azienda ha anche incrementato l'iniezione d'acqua del 50%, il che ci si aspetta migliori risultati nella produzione di petrolio nei prossimi mesi. I punti salienti includono:
- Un programma di trattamento chimico/acido su 24 pozzi, che ha portato a un aumento di 80 BOPD con un costo di $5.500 per pozzo e un periodo di ammortamento di meno di 2 mesi
- Piani per espandere il programma di trattamento chimico a ulteriori 50-75 pozzi e riconsiderare 20 pozzi a partire dal 1° ottobre
- Uso innovativo della cenere volante invece della sabbia per la stimolazione delle fratture, previsto per migliorare la produttività dei pozzi e ridurre i costi
- Piani futuri per stimolare intervalli non perforati a San Andres e considerare perforazioni interne per ridurre la distanza dei modelli
EON si aspetta che questi miglioramenti aumentino la produzione e i ricavi nel prossimo futuro.
EON Resources Inc. (NYSE American:EONR) anunció mejoras y actualizaciones de infraestructura exitosas, aumentando la producción diaria de petróleo a más de 1,000 barriles brutos de petróleo por día (BOPD) desde una base de 925 BOPD. La compañía también aumentó la inyección de agua en un 50%, lo que se espera mejore la producción de petróleo en los próximos meses. Los puntos destacados incluyen:
- Un programa de tratamiento químico/acídico en 24 pozos, resultando en un aumento de 80 BOPD a un costo de $5,500 por pozo y un período de recuperación de menos de 2 meses
- Planes para expandir el programa de tratamiento químico a 50-75 pozos más y volver a completar 20 pozos comenzando el 1 de octubre
- Uso innovador de cenizas volantes en lugar de arena para la estimulación de fracturas, se espera que mejore la productividad de los pozos y reduzca costos
- Planes futuros para estimular intervalos no perforados en San Andres y considerar perforaciones internas para reducir la separación de patrones
EON espera que estas mejoras aumenten la producción y los ingresos en el futuro cercano.
EON 리소스 Inc.(NYSE American:EONR)가 성공적인 인프라 개선 및 업그레이드를 발표하며, 하루 1,000배럴 이상의 원유 생산량을 925 BOPD에서 증가시켰습니다. 또한 물 주입량을 50% 증가시켰으며, 이는 향후 몇 달 간 원유 생산 향상에 기여할 것으로 기대됩니다. 주요 하이라이트는 다음과 같습니다:
- 24개 우물에 대한 화학/산 처리 프로그램을 통해 우물당 $5,500의 비용으로 80 BOPD 증가하였고 2개월 이내에 회수될 것으로 예상됩니다.
- 10월 1일부터 추가로 50-75개 우물에 대한 화학 처리 프로그램을 확장하고 20개 우물을 재완공할 계획입니다.
- 사막 자극을 위한 모래 대신 비행재를 혁신적으로 사용하여 우물 생산성을 향상시키고 비용을 절감할 것입니다.
- 산 안드레스에서 비천공 간격에 대한 자극을 계획하고 패턴 간격을 줄이기 위해 현장 굴착을 고려할 것입니다.
EON은 이러한 개선이 가까운 미래에 생산과 수익을 증가할 것으로 기대하고 있습니다.
EON Resources Inc. (NYSE American:EONR) a annoncé des améliorations et des mises à niveau des infrastructures réussies, augmentant la production quotidienne de pétrole à plus de 1.000 barils bruts de pétrole par jour (BOPD) par rapport à une base de 925 BOPD. L'entreprise a également augmenté l'injection d'eau de 50 %, ce qui devrait améliorer la production de pétrole dans les mois à venir. Les points clés incluent:
- Un programme de traitement chimique/acide sur 24 puits, entraînant une augmentation de 80 BOPD à un coût de 5.500 $ par puits et un délai de retour sur investissement de moins de 2 mois
- Des plans pour étendre le programme de traitement chimique à 50 à 75 autres puits et compléter 20 puits à partir du 1er octobre
- Utilisation innovante de cendres volantes au lieu de sable pour la stimulation des fractures, prévue pour améliorer la productivité des puits et réduire les coûts
- Plans futurs pour stimuler les intervalles non perforés dans San Andres et envisager le forage interne pour réduire l'espacement des motifs
EON s'attend à ce que ces améliorations augmentent la production et les revenus dans un avenir proche.
EON Resources Inc. (NYSE American:EONR) gab erfolgreiche Infrastrukturverbesserungen und -aufrüstungen bekannt, die die tägliche Ölproduktion auf über 1.000 Brutto-Barrel Öl pro Tag (BOPD) von einer Basis von 925 BOPD erhöht haben. Das Unternehmen hat auch die Wasserinjektion um 50% erhöht, was voraussichtlich die Ölproduktion in den kommenden Monaten verbessern wird. Wichtige Höhepunkte sind:
- Ein chemisches/äurehaltiges Behandlungsprogramm für 24 Brunnen, das zu einer Erhöhung von 80 BOPD zu einem Kostenpunkt von 5.500 $ pro Brunnen und einer Amortisationszeit von weniger als 2 Monaten führte
- Pläne zur Erweiterung des chemischen Behandlungsprogramms auf 50-75 weitere Brunnen und zur Wiedervervollständigung von 20 Brunnen ab dem 1. Oktober
- Innovative Nutzung von Flugasche anstelle von Sand für die Frakturstimulation, die voraussichtlich die Produktivität der Brunnen steigern und Kosten senken wird
- Zukünftige Pläne zur Stimulation von nicht-perforierten Intervallen in San Andres und Überlegungen zur Infield-Bohrung zur Verringerung des Musterabstands
EON erwartet, dass diese Verbesserungen in naher Zukunft die Produktion und den Umsatz steigern werden.
- Daily oil production increased to over 1,000 BOPD from 925 BOPD baseline
- Water injection increased by 50% from previous levels
- Chemical/acidizing treatment program resulted in 80 BOPD increase at $5,500 per well
- Payback period for chemical treatment program less than 2 months
- Chevron, EON's largest customer, willing to take all production increases
- Plans to expand chemical treatment program to 50-75 more wells
- Innovative use of fly ash for fracture stimulation expected to enhance productivity and reduce costs
- Expected payback period of 3-4 months for recompletion of 20 wells in Seven Rivers intervals
- Company not yet at breakeven, though expecting to approach it in Q4
Insights
The successful infrastructure improvements and upgrades at EON Resources Inc. are showing promising results. The increase in daily oil production to over 1,000 gross barrels of oil per day (BOPD) from 925 BOPD is significant. The 50% increase in water injection is particularly noteworthy, as this typically leads to improved oil recovery over time.
The chemical/acidizing treatment program on 24 wells yielding an 80 BOPD increase at a cost of only
The planned use of fly ash instead of sand for fracture stimulation is an innovative approach that could potentially reduce costs and increase production efficiency. The company's strategy to recomplete wells in the Seven Rivers intervals and stimulate unperforated San Andres intervals shows a comprehensive approach to maximizing reservoir potential.
Overall, these operational improvements and future plans indicate a positive trajectory for EON's production and financial performance in the coming quarters.
EON Resources Inc.'s operational updates present a positive outlook for the company's financial performance. The increase in oil production without a corresponding rise in operating costs suggests improved profit margins. With Chevron's commitment to purchase all of EON's production, the company has a secure revenue stream.
The cost-effective well treatment program, yielding an 80 BOPD increase at just
The company's approach to cost reduction, such as using fly ash for fracture stimulation, could further enhance profitability. While specific financial figures are not provided, the expected increase in production, coupled with cost-saving measures, suggests potential for improved revenue and earnings in the upcoming quarters.
Investors should monitor Q4 results closely, as the company approaches breakeven and implements additional production enhancement measures.
Successful Infrastructure Improvements and Upgrades Positively Impact Oil Production
HOUSTON, TX / ACCESSWIRE / October 3, 2024 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with oil and gas properties in the Permian Basin. Today, the Company announced the successful completion of infrastructure improvements and upgrades increasing daily oil production to over 1,000 gross barrels of oil per day ("BOPD") range from the inherited baseline of 925 BOPD.
In addition to the oil production starting to increase, infrastructure improvements have increased water injection by
The completion of these projects will enhance production for the next three-to-five years. Along with the aforementioned improvements, the company instituted a chemical /acidizing treatment program on 24 wells which resulted in an increase of 80 BOPD; the cost of this project was only
"Chevron, our largest customer, has notified us they will gladly take all our production, as well as any increases we produce," said Dante Caravaggio, President and CEO of EON. "We expect production in the 4th quarter to increase as we approach breakeven. When you combine the upgrades and improvements we completed, plus our chemical / acidizing treatment program, it's obvious production will increase."
"Beginning October 1st, we will increase our chemical treatment program activity with another 50-75 wells, as well as recompletion of another 20 wells," said Jesse Allen, Vice President of Operations of EON. "These activities will enhance production significantly in the 4th quarter and throughout 2025. Our engineers and management team have decades of experience in stimulating oil and gas wells as well as fracture stimulation. We are taking an innovative and scientific approach to fracture stimulation that can have a material effect on production and reducing downtime."
"Fracture stimulation uses sand to enhance production, but EON will use fly ash, which greatly enhances well productivity," Mr. Allen continued. "It is less expensive than sand that will enable us to increase production and reduce costs. We expect to recomplete 20 wells in the Seven Rivers intervals over the next several months, with an expected payback period of approximately 3 to 4 months."
"In the future we will be stimulating the unperforated intervals in the San Andres intervals to produce new oil," Mr. Allen concluded. "Lastly, we are considering the use of infield drilling to reduce our patterns from 40-acre spacing to either 20-acre or 10-acre spacing. The future of EON is bright, and continuing to build production makes us extremely confident we will see an increase in revenue and earnings in the near future."
EON Resources, Inc. published a letter to shareholders on September 23, 2024.
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, 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 we 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 slow 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 (NYSE American: EONR) and our public warrants trade on the NYSE American (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 accesswire.com
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