EON Resources Inc. (EONR) announced that its wholly owned subsidiary, EON Energy, LLC, has entered into a Purchase and Sale Agreement to acquire all interests held by WPP NM, L.L.C. and Northwest Central, L.L.C. in the South Justis Field.
The acquisition involves exchanging 1.0 million Class A common shares of XYZ Corporation for a 94% working interest in the South Justis Field.
Dante Caravaggio, President and CEO of PetroVista Energy, highlighted that the initial development phase will focus on reactivating idle wells to double oil production.
The following phase plans to stimulate existing wellbores using techniques proven successful in the Grayburg Jackson Field.
The transaction is expected to generate approximately $1.2 million in net annual cash flow and to be accretive for EON Resources Inc. (EONR).
Completion of this transaction is anticipated by June 20, 2025.