Capstar Drilling (www.capstardrilling.com) has been selected as the contractor that will be engaged to drill the Govt Kaehne well utilizing rig #312. This rig has been actively drilling through the summer and has a very experienced crew. The rig is expected to be on site by the first week of November with spudding of the well soon thereafter.
The #9-29 well will be drilled to a depth of ~6,300 feet which is expected to take approximately 12 days to reach total depth (TD). Upon reaching TD, drill stem testing and open hole logging will then be performed to evaluate the reservoir and deliverability. Assuming well success, completion of the well for production is estimated at a further 45 days, with oil production and sales to follow soon thereafter.
As part of the Company's strong capital discipline, it is considering offering a portion of its interest in the Govt Kaehne well to industry partners. Eon acquired these leases with a high net revenue interest (NRI) of 87.5% which allows the Company to sell down a portion of its interest to provide necessary capital for the completion of the well without raising additional capital by issuing more equity or increasing debt. This will place the Company in a stronger position for future development opportunities. The Company will retain a majority interest in the well and operations of the well.
"The drilling of this first PRB well is the most significant milestone for the Company in the last few years," said John Whisler, Managing Director. "A lower level of participation in the well is considered to be good capital discipline and in line with the longer-term objective to grow the Company through drilling of multiple new wells."
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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.