$EONRJun 26, 2026, 6:16 PMAI processed
EONR starts Phase 1 of up-to-92-well San Andres horizontal drilling program
AI Summary
EON Resources (EONR) says Phase 1 of its planned up-to-92-well San Andres horizontal program has begun after regulatory approval for the first three horizontal wells, which Virtus will operate and are slated to be drilled in July; LHO holds a 35% working interest. The company completed three vertical well recompletions to test completions, expects ~10 new horizontals by year-end 2026 and will release 2026 drilling results in Q1 2027 — any material production uplift is unproven until wells are drilled, completed and tested.
Positives
- Regulatory approval obtained for the first three horizontal wells; drilling planned to start in July
- LHO (EON’s subsidiary) holds a 35% working interest in the horizontal wells with Virtus as operator
- Company expects ~10 horizontal wells drilled in San Andres by year-end 2026 and will report 2026 results in Q1 2027
Negatives
- Horizontal wells are not yet drilled or producing—no near-term production uplift confirmed
- Commercial success depends on drilling and completion results that are still pending (results in Q1 2027)
- Program execution relies on external operator (Virtus) and future permitting/operational milestones