en.Wedoany.com Reported - EON Resources has received regulatory approvals from the Bureau of Land Management and the State of New Mexico to drill its first three horizontal wells in the San Andres formation at the Grayburg-Jackson Field in Eddy County, New Mexico, with drilling expected to commence in July 2026.

These approvals mark the launch of the first phase of a 92-well horizontal drilling program operated by Virtus Energy Partners, in which EON holds a 35% working interest. According to the plan, EON expects to complete drilling 10 horizontal wells in the San Andres formation by the end of 2026, with test results to be released in the first quarter of 2027. Meanwhile, the company has initiated a permitting process for a five- to ten-year development plan, which requires approval of 10 new wells every six months.

Prior to the horizontal well program, EON completed recompletions of three vertical wells in the San Andres formation to test completion methods. Currently, the company produces approximately 950 barrels of oil equivalent per day from the Seven Rivers formation at the Grayburg-Jackson Field, and an additional 100 barrels of oil equivalent per day from waterflood operations at the South Justis Field in Lea County.