EON Resources Inc. has announced that its subsidiary, EON Energy, LLC, has entered into a Purchase and Sale Agreement to acquire a 94% working interest in the South Justis Field, located in the Permian Basin in Lea County, New Mexico. The field, with 207 million barrels of original oil in place over 5,360 acres, is currently producing 108 barrels of oil per day from 19 wells, generating an estimated $1.2 million in net annual cash flow. The transaction, effective June 1, 2025, involves exchanging 1.0 million Class A common shares of EON Resources Inc. without any cash consideration or debt. EON plans to enhance production by returning idle wells to activity and employing stimulation techniques. The current field operator will continue to manage operations for a few months as existing employees transition to EON Energy.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.