Successful Gas Well and PRB Drilling Update
Silvertip Gas Well Recompletion
Eon is pleased to announce that the 64-28F recompletion was a success with an encouraging 24-hour shut-in pressure of 400 psi. The initial production (IP) rate of 40 Mcf per day is an indication of skin damage between the wellbore and reservoir created from cement when the well was originally drilled. The well will be monitored and tested over the next 60 days to determine if the gas flow can be increased by implementing an acid wash to remove the cement damage. The well is now online and gas is being sold with existing production.
Powder River Basin, Wyoming
Work is progressing on selecting the initial well locations within Eon's 15,000 acres of Powder River Basin leases. This basin has a long history of oil production from multi-stacked pay zones.
The Company is targeting conventional oil formations including the Dakota and Minnelusa, with low cost vertical wells that have more favorable technical risk, and which provide long term, low decline production.
Success from drilling wells in this new acreage will be company changing, with further details to be advised to shareholders on completion of initial technical studies in February 2019.
A range of funding options for this program are also being considered including introducing JV partners.
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About EON NRG Ltd
EON NRG Ltd (ASX:E2E) is an USA onshore focused energy exploration and production company. The Company's growth path is through drilling of high impact oil exploration wells, supported by its 100% owned and operated long life oil and gas production assets and associated cashflow. The company also has a battery minerals division with prospective leases in Nevada which are at the early stages of low cost exploration.
EON NRG Ltd