EON NRG Ltd (ASX:E2E) (OTCMKTS:ICRMF) has contracted a completion rig and wireline to mobilize to the Silvertip field located in Powell Wyoming. The rig is scheduled to arrive December 3rd to recomplete the STU 64-28F in the Meeteetse gas formation. The STU 64-28F is an offset to the STU 35-28F which was recompleted in February and has produced over 100,000 Mcf of gas.

Since recently acquiring over 15,000 acres of leases in the Powder River Basin ("PRB"), Wyoming, Eon has been carrying out in-depth geological studies to rank the best prospects and define potential new well targets for drilling in 2019-20. Environmental surveys and onsite inspections are being conducted on the first round of drill sites as a start of the drilling permit process.

Eon expects to announce the details of its initial planned drilling program in February 2019 following completion of the technical studies.

The PRB has a long history of oil and gas production from multi-stacked pay zones. It has become one of the most active oil and gas basins in North America in recent times with many large E&P companies including Anadarko Resources, Chesapeake Energy, EOG Resources, Anschutz and Devon Energy acquiring large acreage positions and actively drilling successful wells. The number of drilling rigs operating in PRB has risen fourfold since 2016 and current PRB production is approaching 140 Mb/d. The PRB is emerging as the industry's new growth engine due to the slowing of the Permian Basin as a result of pipeline bottlenecks and high commodity deducts. Relatively low drilling and completion costs, highly attractive conventional staked plays, and the ability to grow while other basins are growth limited makes the PRB a good basin to operate in.

Eon will initially be targeting conventional oil formations with low cost vertical wells that have relatively low technical risk and provide long life production.

The Company will have the option to bring JV partners to share the drilling cost/risk while maintaining operating control of the development program and ongoing production operations.

Eon is well positioned to carry out the initial exploration work on the PRB assets with an experienced in-house team that has a good track record and strong technical skills. The current management team has been responsible for the drilling of over one hundred wells across multiple basins in the US.

Success from new wells would significantly add to the Company's existing production and positive cash flow from oil and gas fields in Wyoming and California.


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.

   

Contact

Australia -
Simon Adams
CFO/Company Secretary
Phone: +61-8-6144-0590
Email: sadams@i-og.net

USA -
John Whisler
Managing Director
Denver Head Office: +1-720-763-3183
Email: jwhisler@i-og.net

Website: www.eonnrg.com
Twitter: @EonNRG



Link: GAS WELL AT STU AND PRB DRILL SITES INITIATED


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