EON Resources Inc. Secures Funding to Reshape Financial Structure and Develop Fields

EON Resources Inc., an independent energy company, has announced receiving non-binding offers totaling $41 to $53 million to fund restructuring and development in the Permian Basin, New Mexico. This funding addresses a Purchase, Sale, Termination and Exchange Agreement, eliminating obligations and repurchasing an overriding royalty interest. The fundings are planned through volumetric funding with a closure timeline of approximately four weeks.

The resources will settle a $20.5 million dispute with a Seller and cover the retirement of $18.5 million in senior debt. This strategic move is anticipated to enhance the company's balance sheet with over $40 million in net value and improve cash flow by $400,000 to $600,000 monthly. Additionally, the funds will support developing 45 waterflood patterns in the Seven Rivers formation.

Furthermore, EON has initiated an agreement with an industry leader for horizontal drilling in the San Andres formation, estimating reserves of up to 40 million barrels. This project could add $100 million in value, with initial drilling set for early 2026.