There were definite signs of a return of confidence in the energy sector in 2018 with an improvement in oil prices and a significant increase in drilling and M&A activity in the industry seen throughout North America. Numerous improvements in drilling techniques and equipment have evolved in recent times which has resulted in, for example, quicker drilling rates leading to cheaper and more economic wells.
The USA oil services industry is competitive and numerous operators, including many in the Powder River Basin, also enable efficient infrastructure establishment once a well is tested and confirmed successful and economic.
Eon completed a capital raising in March 2019 which will provide working capital to support drilling the first Powder River Basin well. Continued tight cost control to maximise funds for drilling and growth opportunities was and remains a key mandate for management.
On behalf of the Board I would like to thank our management, staff, contractors and consultants for their diligent work during 2018 and look forward to Eon's continued growth in 2019 and beyond. We appreciate the continued support of our shareholders and look forward to drilling successful wells in the years ahead.
29 March 2019
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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.