EON Resources prioritizes San Andres horizontal drilling in development strategy
EONR•EON Resources plans to prioritize horizontal drilling at Grayburg-Jackson Field, with an estimated $15 million to $25 million for its share of the initial phase. Successful development could generate about $95 million in future proved developed producing PV-10 value, which is not currently established SEC-qualified reserves.
1. Drilling and funding plans
EON Resources said it will prioritize horizontal drilling in the San Andres formation at Grayburg-Jackson Field, targeting producing reserves and cash flow. The initial phase requires an estimated $15 million to $25 million for the company’s proportionate share; successful development could generate about $95 million in future proved developed producing PV-10 value, which is not currently established SEC-qualified reserves.
2. Equity registration
A registration statement covers 20 million common shares under the company’s $150 million White Lion equity line, with $138.87 million remaining. EON Resources’ capital allocation benchmark targets at least $2 in additional PDP PV-10 reserve value per new common share issued, without guaranteeing that dilution will be offset.
