Eon NRG Ltd (ASX: E2E) is an exploration and production (E&E) company that owns and operates producing onshore USA oil and gas fields in the states of Wyoming and California. In the last seven years, Eon has owned and operated various onshore oil and gas fields. Currently, the company is having a capacity to produce around 530 barrels of oil equivalent per day (boepd) of oil, gas and natural gas liquids from various oil and gas fields that it owns.
In September 2018, the company acquired more than 15,000 acres of leases in Powder River Basin in which it has identified high-grade prospects that it expects to drill new wells from. In order to further develop its PRB project, the company had announced a pro-rata renounceable entitlement offer which was well supported by Eon’s shareholders and new investors and raised a total of around $2.544 million before costs. Following this, the company’s Board reviewed the terms of the E2EO options and changed the exercise price from A$0.02 per option to A$0.0188 per option and the expiry date for the same is 29 November 2019.
The company recently commenced the permitting of its first PRB well– the Govt Kaehne #9-29 which is considered to be a low risk conventional well that is targeting production of light sweet crude oil.
In 2018, the company’s oil sales volume increased to 54,144 barrels from 44,949 barrels in 2017, due to the addition of the Borie Field which was acquired in Q3-17. The company’s gas sales volumes decreased from 354,209 Mcf in 2017 to 282,407 in 2018 due to natural decline. The Gas production and sales volumes in 2017 were higher due to a number of recompletions that were carried out in the fourth quarter of 2016. Further, a successful gas well recompletion was carried out at the Silvertip Field in the first quarter of 2018 (35-28F well) which produced 121 MMcf of gas (Gross) in 2018. The volume of NGL sales declined from 30,693 barrels in 2017 to 22,497 barrels in 2018 in line with lower gas production.
In 2018, Eon NRG reported revenue of around US$4.982 Mn which was 21% higher than US$4.104 Mn in 2017. It was mainly driven by the rise of oil production and higher average oil prices of $65.14 per barrel in FY18 as compared to $48.45 per barrel in FY17. In 2018, the company’s Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) increased by 174% to US$672,856 as compared to the previous corresponding previous period (pcp).
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.006 with a market capitalization of ~$4.62 Million as on 18 March 2019. In the past six months, the share price of the company increased by 12.50% as on 15 March 2019, however, the share price has not witnessed any movement in the past five days. It has a 52-week high price of $0.031 with an average volume ~ 5,699,622.
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