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EON NRG Ltd (ASX:E2E) Log Analysis Confirms Oil Pay in First PRB Well

Perth, Australia, Dec 4, 2019 - (ABN Newswire) - Eon NRG Limited (ASX:E2E.AX - News) is pleased to announce that following completion of the drilling of the Govt Kaehne #9-29 well which reached total depth of 6,460 feet (1,969 meters), initial indications are that an excellent quality reservoir has been encountered with good oil shows in both the primary and secondary target formations.

Highlights:

- Schlumberger log analysis indicate in excess of 30 feet of gross pay in the Govt Kaehne #9-29

- Additional pay identified within the secondary Muddy Formation

- Completion of the well should begin within 30 days at which time swab test rates can be established for the well

- Oil is expected to be flowing and available for first sales in January 2020

- Excellent performance of the CapStar drilling crew and active supervision from on-site management saw the well reach TD of 6,460 feet two days ahead of schedule and below AFE

The well was targeting oil production from the Dakota Sandstone Formation with a secondary formation being the shallower Muddy Sandstone Formation. Schlumberger wireline logs were run after reaching total depth in the Govt. Kaehne #9-29. The logs were sent to Schlumberger for further petrophysical analysis and insight into potential pay zones within the Dakota and Muddy formations as both formations are present and productive within the field.

Dakota formation has 14' of net pay beginning at 6,322 feet, while the Muddy formation shows 7' of net pay beginning at 6,068 feet. Good to excellent oil shows and gas shows exceeding 1,000+ units in each of the formations further support the presence of producible hydrocarbons within each of the formations.

There is no evidence of water underlying the oil column within either formation. The interpreted oil column is deeper than the inferred original oil-water contact for the Field, suggesting that this area of the Field is in a separate compartment and could even be at virgin pressure. Porosity within the Dakota varies throughout with Neutron-Density cross-plots showing 15-18% porosity throughout. Porosity in the best Muddy section exceeds 20% porosity. Micro-log interpretation shows good horizontal permeability throughout the Dakota and Muddy.

The Muddy Formation produces throughout the Donkey Creek Field from similarly thin intersections and two wells in the southern portion of the Field have produced cumulatively 95 and 64 thousand barrels of oil, with no water and very little gas.

"The results to date from the logs on the #9-29 well have confirmed our understanding of the reservoir and give us confidence to continue with our future development plans," said John Whisler, Managing Director. "We are confident that the production from this well proves to be economic."

While running in the hole with Drill Stem Test tools, the test string became stuck some 400' off bottom due to a build-up of "mudcake" in the wellbore. The tools were jarred lose and successfully removed from the well. As a result, no Drill Stem Test was completed. The wellbore has been cased with 51/2" production casing and cemented. The drilling rig has been released. The Company's working interest is 61% and all working interest partners have committed to the casing election and will continue to participate with the completion of the well.

The completion phase should be concluded within 45 days at which time production will be brought on-line ready for sales to commence. First delivery of oil to the refinery is expected in January 2020 with payment for these deliveries within the following month.

This is the first well that has been drilled in the Company's expansive acreage that it holds within the Powder River Basin, Wyoming. It has demonstrated that management can effectively identify and execute the drilling of a successful well and forms a strong base from which to launch the next phase of the Company's development plan.

The targeting of conventional wells in the Powder River Basin has and will continue to provide the company with a strong business model to deliver value accretion through long term production growth and improved cash flow. The Company continues to evaluate production and drilling opportunities and expects to acquire additional production/drill additional wells in 2020.

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About EON NRG Ltd:

EON NRG Ltd (ASX:E2E.AX - News) is an USA onshore focused energy exploration and production company. The Company's growth path is through drilling of high impact oil exploration wells, supported by its 100% owned and operated long life oil and gas production assets and associated cashflow. The company also has a battery minerals division with prospective leases in Nevada which are at the early stages of low-cost exploration.

Contact:

Australia -
Simon Adams
CFO/Company Secretary
Email: sadams@i-og.net
Phone: +61-8-6144-0590

USA -
John Whisler
Managing Director
Email: jwhisler@i-og.net
Phone: +1-720-763-3183

Website: www.eonnrg.com
Twitter: @EonNRG

Source:

EON NRG Ltd

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