EON Resources Inc. Secures $22.5 Million Funding from Enstream Capital

Houston-based EON Resources Inc., an independent energy company, announced a non-binding Letter of Intent with Enstream Capital Management LLC for $22.5 million in well completion funding. This funding will support the development of 45 wells on EON's 13,700-acre property in Eddy County, New Mexico, utilizing low-cost workovers. Additionally, the funds will aid in acquiring an Overriding Royalty Interest.

The investment, structured as a term overriding royalty interest, is intended to finance the conversion of oil and gas reserves into production without affecting EON's equity. Revenues from Enstream's interest will be managed through escrow, aiding in productivity while enhancing reserves and financial stability.

This collaboration is viewed as a long-term strategy, aiming to boost oil production and financial performance. With proven and potential reserves totaling over 50 million barrels, EON expects transaction completion by early 2025.