In November 2023, the company completed the acquisition of LH Operating, a move that significantly expands its footprint within the oil and gas sector. This acquisition includes a substantial 13,700 contiguous leasehold acres in New Mexico, part of the Grayburg-Jackson Oil Field located on the Northwest Shelf of the Permian Basin in Eddy County.
LH Operating, now a wholly owned subsidiary, brings with it a portfolio of 342 producing wells and 207 injection wells spread across 20 federal and three state leases. The assets span several key geological intervals, namely the Seven Rivers, Queen, Grayburg, and San Andres, at depths between 1,500 and 4,000 feet.
A recent reserve report by William H. Cobb and Associates has identified proven reserves within LH Operating holdings of approximately 15.4 million barrels of oil and 3.5 billion cubic feet of natural gas. The original oil in place (OOIP) is mapped at about 956 million barrels across different intervals, with the primary production currently focused on the Seven Rivers zone.
Beyond the existing proven reserves, potential future production could be bolstered by an estimated additional 34 million barrels of oil through strategic perforations in the Grayburg and San Andres formations. This long-term potential promises a steady production and revenue stream for more than twenty years, characterized by a low decline rate.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for EON Resources Inc (EONR, Financial) is $6.00 with a high estimate of $6.00 and a low estimate of $6.00. The average target implies an upside of 1,163.69% from the current price of $0.47. More detailed estimate data can be found on the EON Resources Inc (EONR) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, EON Resources Inc's (EONR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
