The Albany Gazette - EON Resources Inc. Announces Iran Conflict has Accelerated Drilling, Workover and Acquisition Plans

The impact of the Iranian conflict has driven oil prices up over the past month. Global oil prices are expected to remain elevated in the near term. With the increases in oil prices, the Company's realized oil price for both hedged and unhedged (naked) barrels should result in higher revenues and provide EON the opportunity to accelerate drilling, workovers and acquisition activities.

EON expects to bring 500 net barrels of oil per day ("BOPD") on line in the next four months, plus an additional 1,000 net BOPD by the end of 2026. The 500 BOPD is estimated to be the result of pre-funded May 2026 workovers, and the drilling of three San Andres horizontal wells in June 2026 that are without cost to EON under the Farmout Agreement to the Farmee.

The additional 1,000 net BOPD is the anticipated result of 7 to 10 new San Andres horizontal wells scheduled to be drilled in the fourth quarter of 2026 at a total cost of $3.4 million each of which EON will bear its 35 percent share. Each new horizontal well is expected to produce 400 gross BOPD with the 7 to 10 new horizontal wells generating a total of 2,800 to 4,000 gross BOPD. The drilling and completion of 10 new horizontals wells in Q4 will require a capital investment of $14 million attributable to the Company's 35 percent working interest. The Company expects to self-fund the significant portion of EON's cost. The Company plans to consider additional funding options if acceptable terms can be secured.

"The impact of an additional 1,500 BOPD of unhedged net oil production at $75 per barrel is approximately $3 million per month in revenue as we enter 2027 making the payout of our $14 million outlay in drilling and completion costs in less than a year," said Dante Caravaggio, President and CEO of the Company. "We are ahead of schedule to achieve an estimated $40 million EBITDA run rate in 2028, especially when you consider our development plans for the South Justis Field."

"Operational activities are moving ahead at a rapid pace, such that we have high confidence we will complete workovers and planned drilling early. Necessary permits have been submitted, and a drilling rig has been secured by the Farmee under our San Andres Farmout Agreement to commence workovers next month and drilling in June," said Jesse Allen, Vice President of Operations for the Company. "Now that our major water injection pipeline replacement has been completed, our successful Grayburg-Jackson Field Seven Rivers waterflood program is back on track at nearly full capacity, after the affected line having been down for over one year. We have now scheduled acid treatment well stimulations field-wide to boost oil production in the Grayburg-Jackson Field to take advantage of the higher oil prices."

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 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 development and production of the San Andres formation via a Farmout agreement where production will primarily be under a horizontal drilling program under which the Company expects to participate in the drilling of up to 90 new wells over the next several years. More information on this 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 Basin, 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

(T.Martin--TAG)