Reserves Report Update
Reserve replacement is an important value driver for the Company. Eon acquired a large leasehold acreage position in 2018 as part of its focus on growth in production and reserves through drilling of new wells. It will continue to look at its current and new leasehold positions to identify drilling opportunities with the appropriate scale, risk and reward.
The Company is well placed to take advantage of conventional oil and gas development opportunities which have a lower entry barrier (leasehold cost) but which still demonstrate strong economics.
The 1P net reserve4 of the Govt Kaehne 9-20 well (located within the recently acquired Powder River Basin acreage) has been estmated by an independent reservoir engineer at 318 Mbbls. This well, which is permitted and ready to be drilled, will target the Dakota Formation in an undeveloped 40-acre parcel within the Donkey Creek North Field. The proved undeveloped (PUD) reserves only include the primary target formation (Dakota) and do not reflect the potential behind pipe oil that may be in the secondary target formation (Muddy).
The proved developed producing ("PDP") reserves are from the Silvertip, Borie, Sheep Springs and Round Mountain Fields. These oil and gas fields are long-life assets which have 18 plus years of future production based on the independent reserve estimates. They have and continue to generate positive cash flow for the Company.
"The Company will continue to focus on growing its reserve base through identification and development of acreage that it currently owns as well as from new opportunities that it identifies where resources can be extracted economically," said John Whisler, Managing Director. "The existing long-life producing assets that Eon owns and operates provide valuable cash flow for ongoing activities that will generate exponential value for shareholders in the future."
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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