EON Resources Inc. Announces Results of Engineering and Petrophysics Study in Its South Justis Unit
Anticipated 13 million barrels of oil recoverable at 10,000 BOPD Peak Rate with an average 700 BOPD per well with 21 wells
HOUSTON, July 27, 2026 (Newswire.com) - EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent oil and gas company operating in the prolific Permian Basin, the highest oil and gas producing area in the United States. EON operates two fields with approximately 20,000 leasehold acres producing over 1,100 barrels of oil per day ("BOPD").
The Company today announced the same in-house technical team that identified the San Andres formation potential in our Grayburg-Jackson Field in Eddy County, New Mexico, which resulted in a 92-well, $330 million drilling program to develop a probable recovery of 45 million barrels, has completed technical engineering and petrophysics studies of its three main pay sections in its South Justis Unit in Lea County, New Mexico, all part of the Yeso formation, for horizontal drilling potential.
Background
The South Justis Unit was acquired on June 8, 2025. The unit comprises 5,360 contiguous leasehold acres, 97 producing wells and 85 injection wells for a total of 182 wells. EON estimates that through horizontal drilling it can develop the unit with recoverable reserves in the range of 13 million barrels of oil from the Blinebry Interval, which is within the Yeso formation.
Atlantic Richfield Company ("ARCO") developed the South Justis Unit into a multi zone waterflood with mixed results. The lack of continuity between wells is a key positive contributing factor to why horizontal drilling holds much more promise, as horizontal wells connect the formation across a large area that were previously untapped and disconnected.
EON's South Justis Unit technical study found the Blinebry interval to be significantly better than the prolific San Andres formation from state-of-the-art petrophysical analyses on a per well initial oil production and per well estimated ultimate oil recovery (EUR) basis.
This same analysis technique was recently confirmed with field tests in EON's Grayburg-Jackson field, which has now been given a green light for the horizontal drilling of 92 wells in the San Andres formation.
The Blinebry interval is a major tight-carbonate oil and gas zone located primarily on the northwest shelf of the Permian Basin in Southwest New Mexico, largely in Lea County. This formation is famous for producing "sweet spot" high gravity oil and gas.
"We anticipate 21 high-quality horizontal wells capable of producing 700-1100 BOPD, each at an average estimated cost of $4.7 million per well," said Dante Caravaggio, CEO of EON, "as compared to 92 wells in our current San Andres horizontal well program, which are capable of producing 400-700 BOPD at a cost of $3.5 million per well."
EON plans to next evaluate whether it should "go it alone" or seek a farmout drilling partner for development of the South Justis Unit as it has successfully done previously in the Grayburg-Jackson Field, so development can begin in 2027. The Company estimates ultimate recovery to average 650,000 barrels per well, or 13 million barrels across 21 wells, at peak production of 10,000 BOPD in 2028.
"The South Justis Unit has significant horizontal well potential, which was too small for major players in the horizontal well realm, but not for EON," Mr. Caravaggio added. "We will continue to uncover opportunities like the horizontal drilling potential at our Grayburg-Jackson Field and our South Justis Unit. The Permian Basin, with its stacked pay zones, continues to be the gift that keeps on giving."
Key South Justis Unit Study Conclusions
Large remaining Oil in Place of 200 million barrels:
A multi-zone carbonate with under recovered oil reserves and a failed waterflood by ARCO
Substantial reserves remain best recovered utilizing muti-frac, long lateral, horizontal wells
The rock properties that doomed the waterflood by ARCO
High heterogeneity
Poor lateral connectivity
Are ideal for exploitation by horizontal multi-frac wells
Additionally, the Blinebry interval permeabilities are many orders of magnitude better than most Permian shale developments which will result in:
High Oil IP's (initial production) and
Higher EURs (Expected Ultimate Recovery)
The Blinebry interval being the zone of interest at about 5,100 ft Measured Depth (gross thickness of 400 - 500 ft)
Expected EURs dependent on lateral length and frac density
Minimum EUR per well of 245,000 bbls of oil
Max EUR 1,250,000 barrels of oil
Average EUR per well of 650,000 bbls of oil
About EON Resources Inc.
EON is an independent upstream energy company focused on acquiring and developing stacked pay formations for conventional (e.g., waterflooding) and unconventional (e.g., horizontal drilling) recovery. The Company today produces over 1100 BOPD from two properties in Eddy and Lea Counties, New Mexico.
Class A Common Stock of EON trades on the NYSE American Stock Exchange under the symbol "EONR" and the Company's public warrants trade under the symbol "EONR WS". For more information on the Company, please visit the EON website.
About the Grayburg-Jackson Field Property
Our Grayburg-Jackson Field ("GJF") is located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. The GJF comprises 13,700 contiguous leasehold acres where the leasehold rights include the Seven Rivers, Queen, Grayburg and San Andres intervals, which range from as shallow as 1,500 feet to 4,400 feet in depth. The mapped original-oil-in-place ("OOIP") is approximately 956 million barrels of oil. More information on the property can be located on the Grayburg-Jackson Field page of our website.
About the South Justis Unit Property
The South Justis Unit ("SJU") is a carbonate reservoir in the Permian Oil Field located in Lea County, New Mexico. The SJF comprises 5,360 contiguous acres. The producing intervals include the Glorietta, Blinebry, Tubb, Drinkard and Fusselman intervals, which range from 5,000 feet to 7,000 feet in depth. The original-oil-in-place ("OOIP") is approximately 207 million barrels of oil. More information on the property can be located on the South Justis Field page of our website.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," "may," "might," "plan," "possible," "should" and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (www.edgar-online.com) and with the Securities and Exchange Commission (www.sec.gov).
Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
mike@plrinvest.com
SOURCE: EON Resources Inc.
Source: EON Resources Inc.
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