(Source: Shutterstock.com)
Permian Basin producer EON Resources Inc. has signed a $22.5 million letter of intent with Enstream Capital Management for well completion funding, the E&P said Dec. 2. The LOI is non-binding.
EON Resources, formerly known as HNR Acquisition Corp., plans to allocate the funds toward developing 45 wells, using low-cost workovers, on its 13,700 leasehold acres in Eddy County, New Mexico.
The funds will also be used for the acquisition of an overriding royalty interest in the leasehold, the company said. Financial details of the acquisition were not disclosed.
EON said the agreement will convert oil and gas "behind pipe" and lower-risk, proved undeveloped reserves into production.
Over the next 12 months, EON expects improved recoverable reserves with a goal of increasing gross oil production by 1,000 bbl/d to 2,000 bbl/d.
The company intends to use the financing to increase “producing reserves, business profitability, bank collateral and value, and balance sheet strength without diluting Company equity,” EON said.
Production is set to begin in first-quarter 2025.
Recommended Reading
North Hudson Fuels Non-Op Strategy with TXO Deal, $344MM PE Raise
2025-05-20 - Houston-based private equity firm North Hudson eyes non-op deals with new fund as portfolio company LOGOS Resources ramps up San Juan gas drilling.
Former 89 Energy Team Reloads with Pearl Backing for Midcon M&A
2025-07-17 - Startup E&P Blackjack Natural Resources is launching with backing from Pearl Energy Investments to target M&A in the Midcontinent.
Terrific Turner: Oxy's 'Exceptional' Results from Powder River's Turner Sands
2025-05-29 - IP rates from Occidental’s wells completed in the Turner bench of the Powder River Basin last year averaged 1,573 boe/d. Oxy also plans to test the Mowry, Parkman and Teapot zones in the Powder.
International, Domestic Buyers Clamor for US Shale Gas M&A
2025-07-02 - Marketing is heating up for gassy assets in the Haynesville, Appalachia and Midcontinent, a sign that natural gas remains one of the bright spots in upstream portfolios, M&A experts tell Hart Energy.
Post Oak’s Permian Roots Grow Deeper with $480MM in ’24 Minerals M&A
2025-05-07 - Post Oak Energy Capital was early to invest in M&R as a standalone asset class. Today, it manages 85,000 net royalty acres.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.