EON Resources clears path for 92-well Permian horizontal program
EON Resources received regulatory approval from the Bureau of Land Management and the State of New Mexico to begin drilling the first three horizontal wells in the San Andres formation at its Grayburg-Jackson Field in Eddy County, New Mexico, with spud anticipated in July 2026.
The approvals mark the start of Phase 1 of a 92-well horizontal program being operated by Virtus Energy Partners, in which EON holds a 35% working interest. EON expects to drill 10 horizontal wells in the San Andres by year-end 2026, with results from those wells to be released in Q1 2027. The permitting process for 10 wells every six months over a five- to ten-year development program has also been initiated.
EON completed three vertical well recompletions in the San Andres ahead of the horizontal campaign to test completion methods. The company currently produces approximately 950 boe/d from the Seven Rivers formation at Grayburg-Jackson and 100 boe/d from waterflood operations at the South Justis Field in Lea County.
