EON Resources Inc. Announces Farmout of San Andres Rights to Virtus Energy Partners, LLC $300+ million San Andres Horizontal Drilling Program Up to 90 Wells with a Reserve Value Estimated at $95+ million in Net PV-10
EON Resources (NYSE American:EONR) has entered into a significant Farmout Agreement with Virtus Energy Partners for the development of San Andres formation within the Grayburg Jackson Field. Virtus acquired a 65% working interest for $5.0 million, while EON retains a 35% non-operated interest in San Andres and 100% operated interest in remaining formations.
The ambitious development program includes up to 90 horizontal wells with a total investment exceeding $300 million. Each well is expected to cost $3.5-4.0 million and produce 300-500 BOPD initially. The project aims to achieve over 20,000 BOPD in gross production, with 7,000 BOPD net to EON. The first three wells, fully funded by Virtus, are scheduled for completion by mid-2026.
The Economic Summary Projection estimates $95+ million in NPV-10 value net to EON's interest, with potential reserves of 10 million barrels of oil and 6 billion cubic feet of natural gas.
EON Resources (NYSE American:EONR) ha siglato un importante accordo di farmout con Virtus Energy Partners per lo sviluppo della formazione San Andres nel giacimento Grayburg Jackson. Virtus ha acquisito una quota di interesse operativo del 65% per 5,0 milioni di dollari, mentre EON mantiene un interesse non operativo del 35% nella formazione San Andres e il 100% dell'interesse operativo nelle formazioni rimanenti.
Il piano di sviluppo prevede fino a 90 pozzi orizzontali con un investimento complessivo superiore a 300 milioni di dollari. Ciascun pozzo avrà un costo stimato di 3,5-4,0 milioni di dollari e una produzione iniziale prevista di 300-500 BOPD. L’obiettivo è raggiungere oltre 20.000 BOPD di produzione lorda, con 7.000 BOPD netti per EON. I primi tre pozzi, interamente finanziati da Virtus, sono programmati per la conclusione entro la metà del 2026.
La Proiezione Economica stima un valore NPV-10 di oltre 95 milioni di dollari netti per la partecipazione di EON, con riserve potenziali di 10 milioni di barili di petrolio e 6 miliardi di piedi cubi di gas naturale.
EON Resources (NYSE American:EONR) ha suscrito un importante acuerdo de farmout con Virtus Energy Partners para el desarrollo de la formación San Andres en el campo Grayburg Jackson. Virtus adquirió un 65% de interés operario por 5,0 millones de dólares, mientras que EON conserva un 35% de interés no operado en San Andres y el 100% del interés operado en las formaciones restantes.
El ambicioso programa de desarrollo incluye hasta 90 pozos horizontales con una inversión total que supera los 300 millones de dólares. Cada pozo costará entre 3,5 y 4,0 millones de dólares y se espera que produzca inicialmente entre 300 y 500 BOPD. El proyecto apunta a alcanzar más de 20.000 BOPD de producción bruta, con 7.000 BOPD netos para EON. Los tres primeros pozos, completamente financiados por Virtus, están programados para finalizarse a mediados de 2026.
La Proyección Económica estima un valor NPV-10 de más de 95 millones de dólares netos para la participación de EON, con reservas potenciales de 10 millones de barriles de petróleo y 6.000 millones de pies cúbicos de gas natural.
EON Resources (NYSE American:EONR)는 Grayburg Jackson 유전 내 San Andres 지층 개발을 위해 Virtus Energy Partners와 주요 팜아웃 계약을 체결했습니다. Virtus는 500만 달러에 65%의 지분(운영지분)을 취득했으며, EON은 San Andres에 대한 35%의 비운영 지분과 나머지 지층에 대한 100% 운영 지분을 유지합니다.
야심 찬 개발 계획은 총 투자액이 3억 달러를 초과하는 최대 90개 수평정을 포함합니다. 각 정당 비용은 350만~400만 달러로 추정되며 초기 생산량은 하루 300~500 BOPD로 예상됩니다. 프로젝트 목표는 총생산량 20,000 BOPD 이상이며, EON 지분 기준으로는 7,000 BOPD입니다. Virtus가 전액 자금을 지원하는 처음 세 대의 유정은 2026년 중반까지 완공될 예정입니다.
경제성 요약 전망은 EON 지분 기준으로 NPV-10 가치 9,500만 달러 이상을 예상하며, 잠재적 매장량은 1,000만 배럴의 원유와 60억 입방피트의 천연가스입니다.
EON Resources (NYSE American:EONR) a conclu un accord de farmout majeur avec Virtus Energy Partners pour le développement de la formation San Andres dans le champ Grayburg Jackson. Virtus a acquis une participation opérationnelle de 65% pour 5,0 millions de dollars, tandis qu’EON conserve une participation non opérée de 35% sur San Andres et 100% de l’intérêt opérationnel sur les autres formations.
Le programme de développement ambitieux prévoit jusqu’à 90 puits horizontaux pour un investissement total dépassant 300 millions de dollars. Chaque puits devrait coûter entre 3,5 et 4,0 millions de dollars et produire initialement 300–500 BOPD. Le projet vise plus de 20 000 BOPD de production brute, dont 7 000 BOPD nets pour EON. Les trois premiers puits, entièrement financés par Virtus, doivent être achevés d’ici la mi-2026.
La synthèse économique projette une valeur NPV-10 supérieure à 95 millions de dollars nette pour la part d’EON, avec des réserves potentielles de 10 millions de barils de pétrole et 6 milliards de pieds cubes de gaz naturel.
EON Resources (NYSE American:EONR) hat eine bedeutende Farmout-Vereinbarung mit Virtus Energy Partners zum Ausbau der San Andres-Formation im Grayburg Jackson Field abgeschlossen. Virtus erwarb einen 65%igen Working Interest für 5,0 Millionen US-Dollar, während EON einen 35%igen nicht operativen Anteil an San Andres sowie 100% operativen Anteil an den übrigen Formationen behält.
Das ehrgeizige Entwicklungsprogramm umfasst bis zu 90 horizontale Bohrungen mit Gesamtinvestitionen von mehr als 300 Millionen US-Dollar. Die Kosten pro Bohrung werden auf 3,5–4,0 Millionen US-Dollar geschätzt, die anfängliche Produktion auf 300–500 BOPD. Ziel ist eine Bruttoförderung von über 20.000 BOPD, davon 7.000 BOPD netto für EON. Die ersten drei Bohrungen, vollständig von Virtus finanziert, sollen bis Mitte 2026 abgeschlossen sein.
Die wirtschaftliche Projektion schätzt einen NPV-10-Wert von über 95 Millionen US-Dollar netto für EONs Anteil sowie potenzielle Reserven von 10 Millionen Barrel Öl und 6 Milliarden Kubikfuß Erdgas.
- Secured partnership with experienced San Andres developer Virtus Energy, bringing proven expertise
- Received $5.0 million upfront payment for 65% working interest sale
- First three wells to be fully funded by Virtus, reducing initial capital requirements
- Project expected to generate $95+ million in NPV-10 value net to EON
- Potential for self-sustaining drilling program after first 10 wells
- Significant production growth potential to 20,000 BOPD (7,000 BOPD net to EON)
- EON reduces working interest from 100% to 35% in San Andres formation
- Substantial capital requirements of $300+ million over project life
- Development timeline extends into mid-2026 for initial wells
- Execution risk associated with large-scale horizontal drilling program
Insights
EON's $300M+ farmout with Virtus brings capital, expertise, and significant production upside while preserving balance sheet flexibility.
EON Resources has structured a strategic farmout agreement that provides immediate capital infusion while retaining meaningful upside exposure. The $5 million upfront payment from Virtus for a 65% working interest in the San Andres formation rights provides immediate capital, while EON maintains 35% working interest without initial capital requirements for the first three wells. This structure offers EON the best of both worlds: cash now plus future production growth without immediate capital outlays.
The partnership's value goes beyond financial terms. Virtus brings proven expertise in horizontal San Andres development, having previously grown production to 30,000+ barrels of oil equivalent per day from over 200 horizontal San Andres wells. This technical expertise significantly de-risks the development program compared to EON undertaking it alone.
Examining the economics: With projected well costs of $3.5-4.0 million per well and initial production rates of 300-500 BOPD, these wells offer attractive economics if these projections materialize. More importantly for EON shareholders, the arrangement creates a self-funding mechanism – proceeds from the first three wells are expected to fund approximately half the capital needed for the next drilling phase, with the program becoming self-sustaining after approximately 10 wells.
The projected 7,000 BOPD net to EON at full development represents a transformative 7x increase from current production of 1,000 BOPD. The projected $95+ million NPV-10 value to EON's interest provides significant upside relative to the company's current valuation while the staged development approach manages risk effectively.
HOUSTON, TX / ACCESS Newswire / September 11, 2025 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with 20,000 leasehold acres in the Permian Basin. The fields have a total of 750 producing and injection wells producing over 1,000 barrels of oil per day. Today, the Company announced the entering into a Farmout Agreement (the "Farmout") with a subsidiary of Virtus Energy Partners, LLC ("Virtus") on September 9, 2025.
Under the Farmout, Virtus acquired the right to develop the Company's San Andres formation within the Grayburg Jackson Field ("GJF") where it believes as many as 90 horizontal drilling locations are prospective. Virtus will be the designated operator and lead the development efforts.
The Frisco, Texas based Virtus team has a recent and relevant history as the preeminent horizontal San Andres developer in the Permian Basin. Organically and through acquisitions, Virtus created immense value in the state line area of Texas and New Mexico; growing from zero to more than thirty thousand gross operated barrels of oil equivalent per day from more than two hundred horizontal San Andres wells. Virtus' management team gained their expertise developing conventional and unconventional reservoirs with modern technology in most of the notable United States basins before settling on their strategy of redeveloping conventional oilfields in the Permian Basin of Texas and New Mexico.
The closing of the drilling program farmout was simultaneous with the closing of the funding for the settlement of seller obligations and the retirement of senior debt. For additional information regarding the funding, the related press release is available on the EON press releases page of our website.
Highlights of the program and farmout agreement:
Virtus paid EON
$5.0 million for the acquisition of a65% working interest in the leasehold rights in the San Andres formation. The Company retains a35% non-operated working interest in the San Andres and100% operated working interest in the remaining productive formations.As many as 90 horizontal wells are expected to be drilled at a cost between
$3.5 million and$4.0 million per well. Cumulative capital investment by Virtus and EON is expected to exceed$300 million over the life of the project.The annual drilling program is expected to range from 10 to 20 new horizontal wells per year with initial production rates of 300 to 500 barrels of oil per day ("BOPD").
Over the life of the drilling program, gross oil production is expected to exceed 20,000 BOPD with
35% , or 7,000 BOPD, net to the Company's working interest.The first three wells are anticipated to be completed by mid-year 2026.The costs associated with the first three wells are solely Virtus' responsibility.
The Economic Summary Projection of the anticipated development plan (the "Projection") prepared by Virtus estimates more than ninety-five million dollars of reserve value based on net present value discounted at ten percent ("NPV-10") net to EON's retained ownership interest. The Projection estimates the reserves attributable to EON's interest may exceed ten million barrels of oil and six billion cubic feet of natural gas.
"As we scouted the Permian Basin for our next project, Virtus was pleased to find the Grayburg Jackson Field," said Lance Taylor, Chief Executive Officer of Virtus. "The subsurface characteristics are very similar to, and in many ways, better than, our incredibly successful horizontal San Andres efforts along the Texas and New Mexico state line. We have great expectations for this new venture and are thrilled to be partnering with EON's team and our new sponsor."
"We are very pleased to team with Virtus whose team has a proven track record. We have always been confident in the potential of the application of horizontal drilling technology to San Andres formation across our leasehold, but wanted to partner with a proven technical team. It will be a pleasure to work with the Virtus staff, who are very experienced and professional," said Dante Caravaggio, President and CEO of EON. "An additional benefit to EON and our shareholders is the net proceeds from the first 3 wells are expected to cover about half of the drilling capital needs for the next wave of horizontal drilling. We expect that once 10 horizontal wells are drilled and producing that the future drilling capex becomes self-sustaining."
About EON Resources Inc.
EON is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in a diversified portfolio of long-life producing oil and natural gas properties and other energy holdings. EON's approach is to build an energy company through acquisition and through selective development of its properties. Class A Common Stock of EON trades on the NYSE American Stock Exchange under the symbol of "EONR" and the Company's public warrants trade under the symbol of "EONRWS". For more information on the Company, please visit the EON website.
About the Grayburg-Jackson Field Property
Our Grayburg-Jackson Field ("GJF") is primarily a waterflood property located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. The GJF comprises of 13,700 contiguous leasehold acres with 342 producing wells, 207 injection wells and 1 water source well for a total of 550 wells. Leasehold rights include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2024 reserve report from our third-party engineer, Haas and Cobb Petroleum Consultants, LLC, estimates proven reserves of approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") is approximately 956 million barrels of oil. Primary production is currently from the Seven Rivers formation. In addition to proven reserves, the Company believes it may access an additional 34 million barrels of oil by adding perforations in the Grayburg and San Andres formations, plus another 40 million barrels from a horizontal drilling program in the San Andres. More information on the property can be located on the Grayburg-Jackson Field page of our website.
About the South Justis Field Property
The South Justis Field ("SJF") is a carbonate reservoir similar to the rest of the Permian, and is located in Lea County, New Mexico approximately 100 miles from the GJF. The SJF is comprised of 5,360 contiguous acres containing 208 total producing and injection wells with well spacing of 50 acres. The producing formations include the Glorietta, Blinebry, Tubb, Drinkard and Fusselman intervals that 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, but the absence of these words does not mean that a statement is not forward-looking. 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. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - 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 (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
mike@plrinvest.com
SOURCE: EON Resources Inc.
View the original press release on ACCESS Newswire
FAQ
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