EONR News & Events

EON Resources announced its drilling and production plan for 2026. 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. 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.

EON Resources announced it has received multiple non-binding offers to fund the $41M to $53M needed for the previously announced purchase, sale, termination and exchange agreement with the seller that will result in the restructure of the company's balance sheet by eliminating all current and future obligations to the seller in a discounted manner, and re-purchase of an overriding royalty interest equal to 10% in the Grayburg-Jackson Field and a farmout to a team for the previously announced San Andres horizontal drilling program in the Grayburg-Jackson Field. Subject to execution of definitive documents, the company expects to fund the $41M to $53M using volumetric funding via the sale of one or more ORRI packages. The schedule is to close and fund in approximately four weeks. The funding is to discharge its $20.5M settlement with seller and to retire the company's senior debt for $18.5M.