EON Resources Announces 2026 Drilling Program in Permian Basin

Company to recomplete 5 vertical wells and drill 92 new horizontal wells in San Andres formation

Mar. 19, 2026 at 4:40pm

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EON Resources Inc., an independent upstream energy company, has announced its drilling and production plan for 2026. The company will recomplete 5 existing vertical wells in the San Andres formation to test various completion methods, ahead of the planned drilling of 92 new horizontal wells. The company has a farmout agreement with Virtus Energy Partners to drill the new horizontal wells, with the first 3 wells expected to be drilled in Q2 2026 and reported on in Q3.

Why it matters

EON's plan to recomplete existing vertical wells and drill new horizontal wells in the San Andres formation is part of the company's strategy to increase oil production and revenue. The results from the vertical well recompletions will help guide the company's completion practices for the more expensive horizontal wells. This information will be valuable to EON's partner, Virtus, as they prepare to begin the horizontal drilling program.

The details

EON has selected 5 existing vertical wells to recomplete into the San Andres formation at a total estimated cost of $2 million. The company expects the recompletions to contribute an additional 500 BOPD of net oil production, which could add $1.3 million per month in revenue at current oil prices. EON also has a farmout agreement with Virtus Energy Partners to drill 92 new horizontal wells in the San Andres, with the first 3 wells expected to be drilled in Q2 2026 and reported on in Q3.

  • The 5 vertical well recompletions will be reported in the second quarter of 2026.
  • The first 3 horizontal wells are expected to be drilled in Q2 2026 and reported on in Q3.

The players

EON Resources Inc.

An independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in the Permian Basin.

Virtus Energy Partners, LLC

EON's partner in the farmout agreement to drill 92 new horizontal wells in the San Andres formation.

Dante Caravaggio

President and CEO of EON Resources Inc.

Jesse Allen

Vice President of Operations for EON Resources Inc.

Haas and Cobb Petroleum Consultants, LLC

EON's third-party engineer that provided the December 2024 reserve report for the Grayburg-Jackson Field.

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What they’re saying

“In advance of spending $3.5 million per well to drill and complete the horizontal wells in the San Andres, the results from the 5 vertical wells will help guide us as to best completion practices for the horizontal wells. This information will be valuable to our partner, Virtus, as they prepare to begin drilling the new horizontal wells in the second quarter of this year.”

— Dante Caravaggio, President and CEO of EON Resources Inc.

“Our plan is to drill 10 new horizontal wells in 2026. We will drill the first three wells in Q2 and report results in Q3. Our plan is to drill 10 to 20 wells per year depending on results and oil prices.”

— Jesse Allen, Vice President of Operations for EON Resources Inc.

“At today's oil price of $90, this level of production could contribute an additional $1.3 million per month, essentially doubling our net revenues. While we do not expect oil prices to hold above $90 per barrel, we still see elevated oil prices for the balance of 2026. The new oil production coming on line in Q3 will be a major part of our earnings growth in 2026, along with our program to enhance and stimulate over 100 wells at our South Justis Field, plus our plans to expand our Grayburg-Jackson Seven Rivers waterflood patterns.”

— Dante Caravaggio, President and CEO of EON Resources Inc.

What’s next

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The takeaway

EON's plan to recomplete existing vertical wells and drill new horizontal wells in the San Andres formation is a strategic move to increase oil production and revenue. The information gained from the vertical well recompletions will be valuable in guiding the company's completion practices for the more expensive horizontal wells, which are being drilled in partnership with Virtus Energy Partners.