Wednesday, 26 August 2026 06:30 AM
Company Update
HOUSTON, TX / ACCESS Newswire / August 26, 2026 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with 20,000 leasehold acres in the Permian Basin with approximately 1.2 billion barrels of original oil in place. Today, the Company announced that spudding of the first of a projected 92 horizontal well drilling program commenced in the Grayburg-Jackson Field (‘GJF") located in Eddy County, New Mexico.
Dante Caravaggio, EON's CEO, stated that "The first 3 of 92 horizontal wells now being drilled makes all the difference in the world to us. These 3 wells will make our operations profitable, completely changing our financials - and it's happening right now. Our confidence is high because of the successful vertical well recompletions and tests just completed in June and July which created our best wells in the Grayburg-Jackson Field - and we plan to drill 89 more wells."
Horizontal well drilling program overview: On September 9, 2025, the Company's subsidiary, LH Operating, LLC ("LHO"), entered into a Joint Development Agreement (the "Farmout") to develop the San Andres interval in GJF through new horizontal wells to be drilled and completed. More information about the Farmout can be found in our press release announcing the Farmout. More information about the horizontal drilling program can be found in the horizontal program deck on our Grayburg-Jackson Field webpage. Current status and highlights of the development program include:
Recompletions of three vertical wells in the San Andres interval ("Recompleted Wells") were performed in May to July which were used to test and refine horizontal well drilling intervals. The results were far better than expected with initial production of 140 BOPD from the Recompleted Wells.
LHO is being carried (i.e., without cost to LHO) under the Farmout for the drilling of the first three horizontal wells ("Carried Wells"). No bank loan, no bank financing fees, no stock sales, no incremental G&A's have been incurred for Carried Wells. A modest operating cost is expected to pump the Carried Wells.
The spudding (the official start of the drilling process) of the first Carried Well started August 24, 2026. Drilling of each horizontal well will take approximately 10 days to reach the objective depth.
Once spudding occurs, a horizontal well requires approximately 60 days to complete including drilling, the fracing process, installation of surface facilities, and testing. Proceeds from oil sales from these horizontal wells are expected to start being received beginning in October.
The drilling of an additional 12 horizontal wells is expected to start in December of 2026. An additional 10 to 20 wells are expected to be drilled in 2027 and each year thereafter until the development program is completed. The Farmout provides that horizontal wells drilled after the Carried Wells provides for EON to pay its 35% Working Interest share estimated to be $1.2 million per well to participate as a consenting party. The Company plans to primarily debt finance these development costs of its subsidiary.
Under the Farmout, LHO retains a 35% non-operated working interest in horizontal wells in the development program as to the San Andres interval. LHO remains the Operator. LHO retained its 100% working interest in the remaining formations throughout the GJF which includes its waterflood operations principally in the Seven Rivers formation ("Waterflood Production").
Gross oil production is expected to reach and exceed 20,000 BOPD during the development program with 35%, or 7,000 BOPD, attributable to LHO's working interest. The net BOPD contribution to the Company by LHO from the Carried Wells is expected to be 500 BOPD which equates to $1 million in net free cash flow per month. Due to the two months required to drill, complete and bring these wells on line, oil production and revenues from sales will not materialize until October or November.
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 through acquisitions 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 "EONR WS". For more information on the Company, please visit the EON website.
Asset portfolio
Grayburg-Jackson Field ("GJF"): The 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 stacked pay zones named the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. Almost 1 billion barrels in place has been estimated as the original oil in place with less than 7% having been produced to date. The field primarily produces oil from the Seven Rivers formation by reinjecting produced water. The Company's subsidiary, LH Operating, LLC has a Farmout agreement for the San Andres formation to accelerate development starting in August 2026 by the drilling 92 new horizontal wells over the next 4 to 5 years. More information on the property can be located on the Grayburg-Jackson Field page of our website.
South Justis Unit ("SJU"): The SJU is a carbonate reservoir, also in the prolific Permian Basin, and is located in Lea County, New Mexico approximately 100 miles from the GJF. The SJU 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. Like the GJF, the SJU is also employing a waterflood by recycling produced water. 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.