EON Resources Aims for 10 More San Andres Horizontal Wells by Year-End

EON Resources (NYSE American: EONR) says it expects an additional 10 horizontal wells in the San Andres zone of its Grayburg-Jackson Field in Eddy County, New Mexico, by the end of 2026. The company expects them to add 1,000 net barrels of oil per day (BOPD) by then. The window for this runs from October 1 to December 31, 2026.

Why it matters

EON is a small, Permian Basin-only producer with about 20,000 acres across two fields, Grayburg-Jackson and South Justis. It currently produces a little over 1,000 BOPD. The 10 wells follow a first group of three horizontal wells, which the company said in April it expected to complete in June to July and which it expected to add 500 net BOPD. If both groups deliver, the additions would total 1,500 net BOPD. That would exceed today's output, though the figures are on different bases (net versus gross).

The wells fall under a farmout agreement with Virtus, signed September 9, 2025. The company expects 92 horizontal San Andres wells in total, which it says would add $95 million of probable reserves.

What the company holds

• Grayburg-Jackson Field: 14 million barrels of oil reserves (P50, January 2026). The company's interest is not disclosed.
• San Andres horizontal program: 40 million barrels of prospective oil (P50, September 2025), with a 35% company interest. The company separately cites about 11.0 million net barrels of probable reserves under the program.
• Seven Rivers waterflood: 20 million barrels of prospective oil (P50, November 2024). The company's interest is not disclosed.
• South Justis Field: 0.15 million barrels of reserves (P50, August 2025), with a 94% interest.

The company says new production will be unhedged, while current production is hedged at 75% through 2027.

What is uncertain

The schedule is a target, not a result. The April timetable put the first three horizontal wells in June to July, and the company has not stated whether that held. Prospective volumes are not reserves, and the company says 2025 oil prices reduced its reserve values.

EON has also had reporting problems. It missed its 10-K deadline for fiscal 2025, drawing a second NYSE American noncompliance notice with a cure period running to October 2026. It also notified the SEC in May that a quarterly report would be late. In February it restated 2023 and 2024 results to reallocate losses to noncontrolling interest holders, a non-cash correction. The company has not stated whether the notice has been resolved.

For 2025, unaudited revenue was $17 million against $19 million in 2024, on net production of 250,000 barrels in both years.