Eon NRG Expects to Deliver Oil from its First PRB Well in January 2020

  • Dec 12, 2019 AEDT
  • Team Kalkine
Eon NRG Expects to Deliver Oil from its First PRB Well in January 2020

Oil and gas exploration and production company, Eon NRG Limited (ASX: E2E) is expecting the first sales of oil from its first Powder River Basin (PRB) well to materialise in January 2020.

In a well completion update provided on 12 December 2019, the company highlighted the drilling update and completion of the Govt Kaehne #9-29 well of which it is the operator (61% working interest), notifying that the production and first delivery of oil is expected in January 2020 with the payment for oil deliveries in the subsequent month.

A week ago, the company had informed about the encountering of excellent quality reservoir with good oil shows in both the Dakota Sandstone Formation (primary target) and Muddy Sandstone Formation (secondary target).

The Capstar #311 rig successfully completed the drilling of the #9-29 well to a total depth of 6,460 on November 27, two days ahead of schedule. Following which, the wire-line formation logs from the well were analysed and interpreted by Schlumberger which provided sufficient data to determine that hydrocarbons were in place and that the completion was likely to achieving a commercial well.

With encouraging interpretations of the two intersected formations and good oil and gas shows in the mud-logs from the Schlumberger wireline log analysis, the company decided to run 5½” production casing and cement in readiness for the completion phase.

Forward Plan

  • A completion rig will be mobilized to site within the next 10 days to make a bit and scrapper run in order to prepare the wellbore for completions;
  • Subsequently, wireline will run a cement bond log and perforate the casing in the Dakota Formation;
  • Swab test will also be carried out to provide an indicative production rate which will be used to confirm pump settings and oil storage requirements;
  • Oil will be stored on site and then transported to the refinery collection point by truck;
  • First delivery of oil is expected in January 2020;
  • Payment for oil deliveries is expected to be made in the month following delivery.

Lens through Govt Kaehne’s significance

  • Well is located in a structurally high position in a reservoir that is oil rich with 30-40’ of pay expected in the Dakota Formation;
  • Close to service town (Gillette) and good access for transportation of the oil from storage;
  • Strong water drive which results in higher recovery and lower production decline rates;
  • Offset wells have good initial production rates (IP’s) and estimated ultimate recovery (EUR);
  • The well is also located in the North Donkey Creek Field approximately 22 miles east of Gillette, Wyoming, a major service center for the oil and gas industry in PRB;
  • Eon believes that this new well could add significantly to its existing production capacity.

In just around 14 months of period, Eon has come a long way from acquiring 15000 acres of PRB leases in September 2018 to completing the drilling of the first well, with first oil delivery expected in the next month. This is truly a significant achievement for the company and a step closer in expanding its existing production capacity.

The first well drilled in the E2E’s extensive PRB acreage has proven the management’s expertise to discover and implement the drilling of a successful well, while significantly eyeing the next phase of company’s development strategy.

E2E’s stock last traded at a price of $0.005 with a market cap of ~ $3.85 million on 12 December 2019.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.


All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK