HNRA News & Events

EON Resources has entered into an agreement with Pogo Royaltythat would result in a restructure of EON's balance sheet through the retirement of a promissory note to Seller having an original principal amount of $15,000,000, the purchase of a 10% Overriding Royalty Interest in the Company's oil field property from Seller and the repurchase of 100% of preferred units held by Seller in EON's subsidiary which would otherwise convert into the Company's Class A common stock on November 15, 2025 pursuant to a formula. The total consideration payable to Pogo in connection with the restructuring consists of $22,000,000 in cash from EON plus the issuance of 3,000,000 shares of the Company's Class A common stock to the Seller. The agreement is subject to various closing conditions, including, without limitation, that the Company obtain adequate financing to fund the cash consideration portion, and that the agreement shall terminate if the closing does not take place within 120 days. The agreement also contains mutual general releases, which shall be effective upon the closing of the agreement. The effect on the Company's balance sheet and financial position exclusive of the final financing arrangements the secure the $22 million in cash consideration is anticipated to include the following: A reduction of liabilities comprised of principal and accrued interest debt owing to Seller of approximately $18,000,000 Reduction of $24,000,000 of redemption value of the currently outstanding preferred units held by Seller. The ORRI which is valued at $14 million and is presently generating approximately $200,000 per month in proceeds. The elimination of outstanding shares of the Company's Class B common stock.

HNR Acquisition Board of Directors has approved changing the Company's corporate name to EON Resources. HNRA will continue as EON as an independent energy company focused on Energy, Oil, Natural Resources, and other aspects of the Energy Industry. Our current focus is as an upstream energy company with producing oil and gas properties in the Permian Basin. Our plans are to grow through acquisition and through the development and enhancement of onshore oil and natural gas properties in the United States. The effective date of the name change to EON will be September 18, 2024. The Company has reserved with the NYSE American Exchange the ticker symbol EONR for its Class A Common Stock and EONR WS for its publicly traded warrants. The CUSIP numbers for each will remain unchanged. The Class A Common Stock and warrants are expected to begin trading on the NYSE American Exchange under the Company's new name and trading symbols effective as of market open on September 18, 2024. No action is required by existing stockholders with respect to the name and ticker symbol changes. The Company's new website URL address effective when the Company starts to trade under the new name and ticker symbols will be www.EON-R.com.

HNR Acquisition announces oil production increases from a chemical stimulation treatment program started in late June 2024. What is the program: A chemical stimulation treatment restimulates producing wells that had not maintained previously achieved productions levels by removing scale build-up that restricts the flow of oil. The Company started the program in late June 2024 with a pilot program of chemically treating 24 producing wells. Upon confirming the viability of this proven methodology, the Company will expand and commence chemically treating approximately 100 less than optimal producing wells as a first phase. Then the Company will assess the balance of the 342 wells. What is the chemical treatment: Chemical stimulation is a process that increases oil production by increasing hydrocarbon flow from the reservoir into the well bore. The process for each batch of 3 to 6 wells first injects the wells with a paraffin solvent / dispersant, and then the two days later treats the well with an acid solution. The chemical stimulation being used is an innovative process introduced to the Company by our chemical supplier, Jacam Catalyst. The treatment is with a chemical blend with nano sized molecules that mobilizes hydrocarbons to increase the efficiencies of dissolving HCL soluble scales. The acid portion of this blend contains corrosion inhibitors, and increased iron control capabilities to mitigate re-clogging of the oil well during the natural course of production. The chemical treatment also removes fine silts and scales, inhibits them from reappearing and increases the flow of oil. What are the results to date: The initial results of the pilot program have been successful and very encouraging with an additional production of 80-plus BOPD. The Company is starting the first phase of the program for 100 producing wells. Based on the initial response of the 24 wells in the pilot program, we estimate the chemical treatment program to increase oil production by 250 BOPD from the chemical stimulation treatment program by the end of 2024.