Operations. Overview
EON is an independent energy company with an acquisition and value creation strategy focused on building a company in the energy industry in North America that complements the experience of our management team and can benefit from our operational expertise and executive oversight.
Our first two acquisitions exemplify our focus to maximize total shareholder value from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development, production enhancement, and other exploitation efforts on its oil and natural gas properties.
The Company has acquired two waterflood properties in the Permian Basin located in New Mexico. The Grayburg-Jackson and South Justis fields are upstream oil and gas properties where each have significant oil and gas reserves and potential.
Waterflood Operations
Waterflooding process is a secondary recovery method to produce incremental oil and gas after production via the primary recovery method from natural pressure diminishes. The waterflood process uses the injection of water into an oil-bearing reservoir for pressure maintenance to produce the incremental oil. Waterflooding wells are typically in a pattern of 5 wells which look like the 5 of a die. The middle well is a producing well, and the four corner wells are water injection wells. The injected water puts pressure on the oil to stimulate oil flow through the rock to the producing well for recovery.
The pattern is expanded with common-side patterns to maximize overall field oil and gas recovery. Other benefits to a waterflood property are the oil and gas recovery is a long-lasting, low decline oil production. This creates a long-term steady revenue stream, which is a strong base to generate sustain cash flow and earnings. Additionally, because a waterflood field has over many patterns and wells, the geological and mechanical risks are significantly mitigated. This steady revenue stream and low-risk oil recovery waterflooding method increases the economic value of the asset as the property is developed.
Our Grayburg-Jackson and South Justis fields are waterflood properties where both have potential for additional drilling to both expand the waterflood recovery or to exploit areas for primary recovery depending on technical studies and economics.
