Energy company, Eon NRG Limited (ASX: E2E) owns and operates long-life oil and gas production assets in onshore USA (Wyoming and California). One of the company’s major project, Powder River Basin (PRB), is a prolific multi-stack hydrocarbon filled basin located in Wyoming, North America.
Recently, the company acquired 15,111 gross/net acres of oil and gas leases in the Powder River Basin which helped the company in establishing a large footprint in the Basin. The leases were purchased from the United States Department of Interior with 10-year lease terms and a net revenue interest (NRI) of 87.5%.
The company has made a significant step with the acquisition of these oil and gas leases in PRB as it is considered as one of the most active oil and gas basins in North America. The PRB leases were acquired to identify drill prospects that would support the drilling of potentially economic new wells as it is expected to boost the company’s oil production, cash flow as well as oil reserves.
The potential drill prospects at this basin are targeting oil from multiple formations including the Turner, Dakota and Minnelusa formations with potential drilling opportunities already identified in the Minnelusa formation. Further, the company has already started a geological and technical review at the basin to identify the best drilling opportunities in that area.
The company recently announced a ~2.8 million pro-rata renounceable entitlement offer to its existing shareholders, proceeds of which will be used for working capital including the permitting and drilling in the PRB Project. As per the prospectus of the entitlement offer, the closing date for acceptance of the Entitlement Offer was today (i.e., 28 February 2019).
Besides PRB, the company is also producing oil from Borie Oilfield which is located in Wyoming. During the December quarter, the Borie field produced 56 barrels of oil per day on an average basis. The company is also producing Gas from its Silvertip Field which is also located in Wyoming. Silvertip Field contains various wells out of which the best performing well is 35-28F which produced nearly 0.5 MMcf of gas in 2018. In 2018, the company produced more than 637 Million Cubic Feet (MMcf) of gas from Silvertip Field.
Besides Oil and Gas division, the company is also having a Battery Minerals Division which is still in the early stages of development
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The company’s stock last traded at $0.005 with a market capitalization of ~$4.88 Mn as on 28 February 2019. The counter opened the day at $0.006 and reached the day’s low of $0.005 with a daily volume of ~ 2,316,802. The stock has provided a year till date return of -15.63% & also posted returns of 12.5%, -48.08% & -43.75% over the past six months, three & one-months period respectively. It has a 52-week high price of $0.031 and 52 weeks low of $0.004.
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