Houston-based EON Resources said last week it will recomplete five existing wells in the San Andres formation of Permian Basin in its 2026 drilling and production program. It will test several completion methods in preparation for drilling 92 new horizontal wells. EON said cost to perforate and refrac the five wells is expected to be $2 million.
Dante Caravaggio, president and CEO, said March 19, “The results from the five vertical wells will help guide us to best completion practices for the horizontal wells. This information will be valuable to our partner Virtus as they prepare to begin drilling the new horizontal wells in the second quarter.” He said they will be “spending $3.5 million per well to drill and complete the horizontal wells in the San Andres.”
EON said its agreement with Virtus has started, and the first 10 drill sites have been selected. The initial three permits have been submitted to Bureau of Land Management and State of New Mexico.
Jesse Allen, vice president, said they will drill the first three wells in 2Q and report results in 3Q. “Our plan is to drill 10 to 20 wells per year depending on results and oil prices,” Allen added. Caravaggio said, “The new oil production coming online in 3Q will be a major part of our earnings growth in 2026.”