The Albany Gazette - EON Resources Inc. Announces Its 2026 Drilling Program Commencing with Recompletion of 5 Wells in the San Andres, and 3 of 92 New San Andres Horizontal Wells

The company has selected 5 existing vertical wells to recomplete into the San Andres formation to test various completion methods ahead of the planned drilling of 92 new horizontal wells. These well recompletions will be reported in the second quarter at a total estimated cost of $2 million to perforate and frac the 5 wells.

"In advance of spending $3.5 million per well to drill and complete the horizontal wells in the San Andres, the results from the 5 vertical wells will help guide us as to best completion practices for the horizontal wells. This information will be valuable to our partner, Virtus, as they prepare to begin drilling the new horizontal wells in the second quarter of this year," said Dante Caravaggio, President and CEO of the Company.

Farmout Agreement with Virtus Energy Partners, LLC ("Virtus")

EON's Farmout agreement to drill 92 wells with Virtus, has commenced. Funding is in place. The first 10 drill sites have been selected. The initial 3 permits are prepared and submitted to the BLM and the State of New Mexico. The Company expects approval within 90 days. Preparations are underway to commence drilling in Q2 of 2026.

"Our plan is to drill 10 new horizontal wells in 2026. We will drill the first three wells in Q2 and report results in Q3. Our plan is to drill 10 to 20 wells per year depending on results and oil prices," said Jesse Allen, Vice President of Operations for the Company. "Our technical team estimates a 400 BOPD average for each well. EON's 35% working interest is pre-funded partially within our farmout agreement. EON expects net oil production to be 500 BOPD from the 5 vertical well recompletions and first three horizontal wells, and will be at no cost to the Company."

"At today's oil price of $90, this level of production could contribute an additional $1.3 million per month, essentially doubling our net revenues. While we do not expect oil prices to hold above $90 per barrel, we still see elevated oil prices for the balance of 2026. The new oil production coming on line in Q3 will be a major part of our earnings growth in 2026, along with our program to enhance and stimulate over 100 wells at our South Justis Field, plus our plans to expand our Grayburg-Jackson Seven Rivers waterflood patterns," said Dante Caravaggio, President and CEO of the Company. "As our capital requirements elevate in 2026 and 2027, our plans to fuel this growth plan is expected to come from a balanced approach to debt and equity raises."

"I am excited about the future of our company, especially with our team working so hard to dramatically increase our hydrocarbon production and the resulting value to our shareholders," concluded Mr. Caravaggio. "We are in the midst of significant turmoil in the Middle East and Europe, and believe our USA, home grown, Permian assets are poised to make a meaningful long-term contribution to our country and stakeholders."

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 a diversified portfolio of long-life producing oil and natural gas properties and other energy holdings. EON's approach is to build an energy company through acquisition and through selective development of its properties. Class A Common Stock of EON trades on the NYSE American Stock Exchange under the symbol of "EONR" and the Company's public warrants trade under the symbol of "EONRWS". For more information on the Company, please visit the EON website.

About the Grayburg-Jackson Field Property

Our Grayburg-Jackson Field ("GJF") is located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. The GJF comprises of 13,700 contiguous leasehold acres where the leasehold rights 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 2024 reserve report from our third-party engineer, Haas and Cobb Petroleum Consultants, LLC, estimates proven reserves of approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") is approximately 956 million barrels of oil. The Company has two production programs. The first is the existing waterflood recovery primarily in the Seven Rivers formation via the 550 wells already in place. The second is via a Farmout agreement in the San Andres formation where the recovery will primarily be under the horizontal drilling program that the Company expects to drill up to 90 new wells over the next several years. More information on the property can be located on the Grayburg-Jackson Field page of our website.

About the South Justis Field Property

The South Justis Field ("SJF") is a carbonate reservoir similar to the rest of the Permian, and is located in Lea County, New Mexico approximately 100 miles from the GJF. The SJF is comprised of 5,360 contiguous acres containing 208 total producing and injection wells with well spacing of 50 acres. The producing formations include the Glorietta, Blinebry, Tubb, Drinkard and Fusselman intervals that range from 5,000 feet to 7,000 feet in depth. The original-oil-in-place ("OOIP") is approximately 207 million barrels of oil. More information on the property can be located on the South Justis Field page of our website.

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.

Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
[email protected]

SOURCE: EON Resources Inc.

View the original press release on ACCESS Newswire

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