The Company estimates ultimate recovery to average 650,000 barrels per well, or 13 million barrels across 21 wells, at peak production of 10,000 BOPD in 2028.

"The South Justis Unit has significant horizontal well potential, which was too small for major players in the horizontal well realm, but not for EON," Mr. Caravaggio added. "We will continue to uncover opportunities like the horizontal drilling potential at our Grayburg-Jackson Field and our South Justis Unit. The Permian Basin, with its stacked pay zones, continues to be the gift that keeps on giving."

Key South Justis Unit Study Conclusions

Large remaining Oil in Place of 200 million barrels:

A multi-zone carbonate with under recovered oil reserves and a failed waterflood by ARCO

Substantial reserves remain best recovered utilizing muti-frac, long lateral, horizontal wells

The rock properties that doomed the waterflood by ARCO

High heterogeneity

Poor lateral connectivity

Are ideal for exploitation by horizontal multi-frac wells

Additionally, the Blinebry interval permeabilities are many orders of magnitude better than most Permian shale developments which will result in:

High Oil IP's (initial production) and

Higher EURs (Expected Ultimate Recovery)

The Blinebry interval being the zone of interest at about 5,100 ft Measured Depth (gross thickness of 400 - 500 ft)

Expected EURs dependent on lateral length and frac density

Minimum EUR per well of 245,000 bbls of oil

Max EUR 1,250,000 barrels of oil

Average EUR per well of 650,000 bbls of oil