EON Resources spudded the first well of its 92-well Permian drilling program on 24 August 2026, in the Grayburg-Jackson Field in Eddy County, New Mexico. Spudding marks the start of drilling on a well. The well is the first of three being drilled under a farm-out agreement covering the San Andres interval, signed 9 September 2025 between EON subsidiary LH Operating and a subsidiary of Virtus Energy Partners. A farm-out lets one company drill on another's leasehold in exchange for an interest in the wells.
Recompletions set the design
Three vertical wells in the San Andres interval were recompleted between May and July, producing initial rates of 140 barrels of oil per day. Those results informed the design of the horizontal wells now being drilled under the farm-out.
Drilling and completion pace
Each horizontal well is expected to take about 10 days to drill to objective depth. A further 60 days is needed to complete each well, covering fracing, surface facility installation and testing.
An additional 12 horizontal wells are set to begin drilling in December 2026. From there, EON plans 10 to 20 more wells a year through 2027 and each year after, until the 92-well program is finished.