Potential for Increased Production
EON Resources has plans to drill 90 San Andres horizontal wells with potential production of 400 barrels per day per well, a significant increase from the previously planned 50 wells.
Hedging Strategy Success
70% of oil production is hedged at $70 per barrel, providing stability against volatile market prices.
Cost Reductions Achieved
Leasehold expenses dropped to $683,000 per month from $700,000-$750,000. Interest expenses decreased by $165,000 due to note conversions.
Production Stabilization
Production stabilized in the 925 to 950-barrel oil per day range due to workover rig operations.
Safety Record
No reportable incidents in 2024 and into Q1 2025, indicating effective safety protocols.