Eon NRG Limited (ASX: E2E) is a public listed energy company which owns and operates oil and gas producing fields in onshore USA. The company derives its revenue mainly from the sale of oil and gas and NGL. Besides oil and gas division, the company also has Battery Minerals Division which is in the early stages of development. The Group targets high impact energy projects in gas, oil, and battery minerals, supported by its owned and operated long-life oil and gas production assets and associated cash flow.
In September 2018, the company acquired 15,000-acre oil and gas leases in the Powder River Basin (PRB). PRB is a prolific multi-stack hydrocarbon filled basin in North America, and by acquiring 15,000-acre of leases, Eon has established a large footprint in this Basin. Following the acquisition of these leases, the company had commenced a geological and technical review of them.
On 6 March 2019, Eon notified the market that it has begun the permitting procedure of its first well, the Govt Kaehne #9-29, which was the first well drilled within Eon’s 15,000-acre PRB lease holding.
In the detailed geological review, a part of PRB leases had identified various drilling prospects. A further two of these prospects, are anticipated to be drilled in the year 2020, which will target the Minnelusa, a Permian Age eolian dune reservoir.
In December 2017, the company completed the purchase of the Borie Oilfield, located west of Cheyenne in the DJ Basin. The Borie Field contains a long production history of gas and oil from conventional vertical wells, which are produced from the Muddy Formation. The DJ Basin is an oil and gas producing basin which covers parts of Colorado, Wyoming and Nebraska. Wells have been drilled in the Borie Field at various times from the 1950’s to the early, 2000’s, and there is a potential for further drilling of new wells within this field.
In FY 2018, the company reported revenue from ordinary activities of $4,981,781 as compared to $4,104,318 in 2017, representing a growth of 21%. The revenues were mainly driven by higher average oil prices and increased oil production. In 2018, the company produced 54,144 barrels of oil, 282,407 Mcf of gas and 22,497 barrels of NGL. In FY 2018, the company reported Field operating profit before amortization and depreciation of $2,406,643 as compared to $1,941,768 in 2017, representing an increase of 24%.
The company recently provided notice regarding the change of interest of its substantial holder- Merchant Holdings Pty Ltd. Merchant Holdings now holds 6.75% voting power in Eon with 52,000,000 ordinary shares.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. By the end of the trading session, the stock price of the company was noted at A$0.006 with a market capitalization of ~$4.62 million as on 28 March 2019. It has a 52-week high price of A$0.031 and touched 52 weeks low of A$0.004, with an average volume of ~ 5,814,107.
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