EON Resources completes preliminary assessment of San Andres reservoirs

EON Resources (EONR) has completed a “preliminary assessment” of the horizontal potential of the lower San Andres reservoirs in the Grayburg-Jackson Field that it operates in Eddy County, New Mexico. This preliminary assessment reveals possible recovery of an additional 20 million barrels of oil and 16 billion cubic feet of natural gas in the lower intervals of the San Andres. The Company’s current, on-going waterflood program has proven reserves of 15 million barrels of oil and 3 billion cubic feet of natural gas. This preliminary assessment is the first step in an ongoing, comprehensive, multi-disciplinary analysis of the field incorporating petrophysics, geology and engineering data. The preliminary assessment uses modern geoscience software and workflows, which will ultimately lead to a 3D geologic model incorporating extensive well control. The ongoing multi-disciplinary work indicates the presence of previously unrecognized intervals and is expected to identify new drilling locations. The preliminary assessment indicates that the significant volumes of stranded oil present in the lower San Andres beneath the Company’s approximately 13,700-acre position is best exploited by drilling 5,000 foot horizontal wells.