EON Unlocks Huge Potential in South Justis Unit

EON Resources Inc., an independent oil and gas company operating in the Permian Basin, has announced the results of its engineering and petrophysics study on the South Justis Unit. The unit, acquired by EON last year, comprises 5,360 contiguous leasehold acres and contains 182 wells.

The technical team at EON identified that horizontal drilling could unlock significant reserves in the Blinebry interval within the Yeso formation. This zone is known for producing 'sweet spot' high gravity oil and gas, and petrophysical analysis indicates it has better permeability than most Permian shale developments.

EON estimates that 21 high-quality horizontal wells could be drilled at an average cost of $4.7 million per well, with each capable of producing 700-1100 BOPD. This is compared to the current San Andres horizontal well program, which produces 400-700 BOPD at a cost of $3.5 million per well.

According to CEO Dante Caravaggio, EON plans to evaluate whether to develop the South Justis Unit alone or seek a farmout drilling partner. The Company estimates that ultimate recovery could average 650,000 barrels per well, with peak production reaching 10,000 BOPD in 2028.