Houston-based EON Resources, independent upstream energy company with properties in Permian Basin, said last week that subsidiary EON Energy agreed with WPP NM and Northwest Central to acquire all their interests in South Justis field in Lea County, N.M. EON will exchange one million Class A common shares of the company (without cash consideration or debt) to acquire 94 percent working interest in South Justis.
The field currently is producing 108 barrels of oil per day from 19 actively producing wells (to add $1.2 million in net cash flow annually with minimal impact to costs) in Central Basin of Permian near EON’s Grayburg-Jackson field in Eddy County, N.M. EON is acquiring 5,360 leasehold acres with a total of 208 wells.
Dante Caravaggio, president and CEO, said June 20, “Step one in development of South Justis field is to return idle wells to production to double oil production. Step two is to stimulate existing wellbores using the same techniques the company successfully employs in Grayburg-Jackson.”
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