Eon NRG Ltd (ASX:E2E) continues to expand its production, oil and gas reserves, cash flow and improve its profitability by focusing on oil and gas exploration and development activities.
The acquisition of 15,000 acres of leases in the Powder River Basin in Wyoming in September 2018 provided an opportunity to discover new development opportunities that will enable these goals to be achieved.
Eon is in the process of drilling its first well in the PRB known as the Govt Kaehne #9-29 well, a major milestone for the company.
Notably, exploration activities are supported by cash flow generated by the company’s owned and operated producing fields in Wyoming and California.
Net production from these assets during the latest June quarter was 385 barrels of oil equivalent per day, which generated net sales revenue of US$976,063.
Govt Kaehne #9-29 well
The #9-29 well will be drilled to a depth of around 6,300 feet which is expected to take 12 days to reach total depth.
This well is considered to be a low-risk conventional well targeting the production of light sweet crude oil from the Sandstone reservoirs of the Dakota Formation at around 6,200 feet depth.
The #9-29 well is expected to spud in November with first oil sales expected by the end of calendar 2019.
Eon holds 100% ownership in all the PRB leases with an 87.5% net revenue interest.
The well location has good access for transportation and is near the town of Gillette, a major oil service centre for the PRB.
A successful outcome at the #9-29 well will lay the foundations for replication of the exploration strategy across the 15,000 acres of leases in the PRB.
Other companies presenting at the Sydney and Melbourne events are Minotaur Exploration Ltd (ASX:MEP), Brookside Energy Ltd (ASX:BRK), Kingston Resources Ltd (ASX:KSN) and Shekel Brainweigh Ltd (ASX:SBW).