EON Resources Allocates $25M Drilling, $35M Acquisitions to Add 1,000 BOPD Annually
EONR•EON Resources will allocate $25M/year to drilling 20 new horizontal wells and $35M/year to acquisitions through 2030, adding 1,000 barrels of oil per day annually and targeting 10,000 BOPD by end-2030. It also budgets $10M/year for workovers and waterflood expansions and $5M/year for other capex.
1. Growth Strategy Overview
EON Resources has unveiled a 2026–2030 plan to boost production from 1,000 BOPD to 10,000 BOPD by year-end 2030. The strategy includes annual allocations of $25 million for drilling and $35 million for targeted acquisitions, driving a net 2,000 BOPD increase each year.
2. Drilling and Completions Plan
The company will drill and complete up to 20 horizontal wells annually in the Grayburg-Jackson Field, adding 1,000 BOPD per year. An initial three-well carried interest under the San Andres farmout eliminates drilling costs on those wells, with subsequent Q4 2026 drilling to be debt financed.
3. Acquisition Funding Approach
EON seeks Permian Basin producing properties that mirror its existing leases, using $35 million per year for accretive purchases. It plans to leverage plugging and abandonment credits, reserve-based lending, asset-based lending or overriding royalty interest financing to optimize deal economics.
4. Workovers, Waterflood and Other Capex
The company has earmarked $10 million annually for workovers and expansion of waterflood patterns via term overriding royalty interests offering investors a 50% return. Additional capital needs of $5 million per year cover equipment improvements, pattern expansions and rig and crew integration.
