Eon Resources Inc. · AMEX:EONR
Eon Resources — HNR Acquisition — Investor Presentation (February 2024)
31 slides from Eon Resources's investor presentation, Feb 20, 2024
Slide 1: HNR Acquisition Corp Corporate Slide Presentation February 2024
HNR Acquisition Corp Corporate Slide Presentation February 2024
Slide 2: Index
Index • Disclaimers • About the Company • Operations and the Property • The Team 2
Slide 3: Disclaimers
Disclaimers
Slide 4: Disclaimer
Disclaimer • This presentation of HNR Acquisition Corp (“HNRA” or the “Company”) shall not constitute a “solicitation” as defined in Rule 14 a - 1 of the Securities Exchange Act of 1934 , as amended . • The information in this presentation may not be complete and may be changed at any time . Before
Slide 5: Disclaimer - Forward-Looking Statements
Disclaimer • Forward - Looking Statements • Statements in this presentation which are not statements of historical fact are “forward - looking statements” . Our forward - looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, belief
Slide 6: About the Company
About the Company
Slide 7: Why Invest in HNRA?
Why Invest in HNRA? • Acquired property has proven oil field in Permian Basin, New Mexico • Upside where proven reserves can triple production in 3 to 4 years • Has produced revenues and cash flow since 2020 • Minimal downside drilling with 550 wells in shallow zones of 1,500 to 4,000 feet • Managem
Slide 8: About HNR Acquisition Corp (HNRA)
About HNR Acquisition Corp (HNRA) • HNRA is an independent public energy company with an acquisition and value creation strategy focused on building a company in the energy industry in North America • Our first acquisition and initial focus is to maximize total shareholder value from a diversified p
Slide 9: Acquisition Closing Structure
Acquisition Closing Structure • Purchase price • Reductions to net due • Class B common stock • P&L credit for 4 months • Net required to close • Non - cash tenders • Note payable • Preferred stock units • Deferred cash payable • Cash due at close 90 mil (21 mil) ( 6 mil) 63 mil (15 mil) (15 mil) (
Slide 10: Capitalization Structure – Issued and Outstanding
Capitalization Structure – Issued and Outstanding • HNRA common stock • Founders and sponsor shares • Class B shares issued to seller • Voting shares that convert within 3 years • IPO non - redemption shares • Shares issued in lieu of cash 7.0 mil 3.0 mil 2.0 mil 1.2 mil 0.8 mil • Warrants in common
Slide 11: Long-Term Debt Financing Structure
Long - Term Debt Financing Structure • HNRA has a $28 million Reserve Base Loan (“RBL”) with First International Bank & Trust (“FIBT”) with a 5 - year amortization • FIBT has been serving the community and industry for 113 years • That are headquartered in Watford City, North Dakota with offices in
Slide 12: Operations and the Property
Operations and the Property
Slide 13: Operations and the Property
Operations and the Property • Industry and Acquisition Strategy Overview • Waterflood Operations • Grayburg - Jackson Oil Field Property • Land and Ownership Overview • The Oil Field • Development History • Seven Rivers (7R) – Development History • Seven Rivers (7R) Waterflood Development • Future D
Slide 14: Industry and Acquisition Strategy Overview
Industry and Acquisition Strategy Overview • HNRA is an independent energy company with an acquisition and value creation strategy focused on building a company in the energy industry in North America that complements the experience of our management team and can benefit from our operational experti
Slide 15: Waterflood Operations
Waterflood Operations • Waterflooding process is a secondary recovery method to produce incremental oil and gas after production via the primary recovery method from natural pressure starts to diminish • The waterflood process uses the injection of water into an oil - bearing reservoir for pressure
Slide 16: Grayburg-Jackson Oil Field Property
Grayburg - Jackson Oil Field Property • Our first acquisition was the Grayburg - Jackson oil field which is a waterflood property, and is operated by the HNRA subsidiary LH Operating, LLC (“LHO”) • The Grayburg - Jackson oil field is located on the Northwest Shelf of the Permian Basin in Eddy County
Slide 17: Land and Ownership Overview
• ~13,700 gross acres • 23 Leases (20 BLM and 3 State leases) • 100% WI with 74% average NRI • 100% Operated • 100% HBP • Title opinion coverage on 97% of PDP PV10 value BLM and NM State Leases Title Opinion Coverage BLM Leases NM State Leases LH Leases with Title Opinion LH Leasehold <75% NRI 75% -
Slide 18: The Oil Field
The Oil Field • The oil field has several large reservoir structures that range from as shallow as 1,500 feet deep to 4,000 feet deep • The field has attainable proven reserves of approximately 20 million barrels of crude oil and 6 billion cubic feet of natural gas • Wells and reserves • 85% crude o
Slide 19: Development History
Development History • Development began in 1940’s for the Seven Rivers (“7R”), Queen, Grayburg, and San Andres intervals • In late 2019, LHO (a privately owned company) purchased the property and operated the Grayburg - Jackson field from early 2020 • The 2020 baseline production level was approxima
Slide 20: Seven Rivers (7R) – Development History
10 100 1,000 10,000 10 100 1,000 10,000 1945 1950 1955 1960 1965 1970 2000 2005 2010 2015 2020 Seven Rivers (7R) – Development History Depositional Setting LH Operating Regional Setting GYBG - JACKSON 120 MMBO Cum MALJAMAR 140 MMBO Cum VACUUM 631 MMBO Cum LH Operating Gross Oil (BOPD) Gross Well Cou
Slide 21: Seven Rivers (7R) Waterflood Development
Seven Rivers (7R) Waterflood Development 7R Waterflood Development Pilot Response Starts Early 2020 Current 7R Waterflood Response • LH Operating’s 7R WF work began late 2019 in the H E West B 4 - pattern pilot with initial production response in February 2020 • 95 patterns have been brought online
Slide 22: Future Development
Future Development • HNRA plans on doing the same successful workovers which will expand the existing waterflood patterns field - wide • Management expects to increase daily production to nearly 4,000 barrels of oil and oil equivalent in the next three to four years in accordance with a reserve repo
Slide 23: Cobb Report Projections
Seven Rivers Full Waterflood Development (Gross BOPD) Cobb Report Projections Seven Rivers Future Development • The projections are based on the Cobb report • 253 pattern total development x 95 PDP patterns x Plus 115 PDNP and 43 PUD patterns x Patterns are a combination of producing wells and water
Slide 24: Stratigraphy & Seven Rivers Type Log
Regulatory Production Pool: 7R - Q - GB - SA Approx. Regional Thickness (ft) Formation Epoch Period 200 - 400 Dewey Lake Ochoan Permian 100 Rustler 1,000 Salado 200 Tansil Guadalupian 200 Yates 500 Seven Rivers 200 - 500 Queen 300 Grayburg 1,500 San Andres 100 Glorieta Leonardian 1,500 Paddock Yeso
Slide 25: The Team
The Team
Slide 26: Organization Chart
Organization Chart Dante Caravaggio CEO & Director David O'Brian Field Superintendent David Smith General Counsel Jesse Allen VP Operations Mitch Trotter CFO & Director Independent Directors • Joseph Salvucci, Sr. • Joseph Salvucci, Jr. • Byron Blount Consultants & Advisors • Don Orr – Geological •
Slide 27: Dante Caravaggio – Chief Executive Officer and Director
Dante Caravaggio – Chief Executive Officer and Director Mr. Caravaggio has 40+ years of experience in the oil and gas industry. He has held Executive and program management positions with Kellogg Brown and Root, Parsons Corp, Jacobs Engineering and Sun Oil in locations in North America, Asia, and th
Slide 28: Mitchell B. Trotter – Chief Financial Officer and Director
Mitchell B. Trotter – Chief Financial Officer and Director Mr. Trotter has 40+ years of experience in various controller and CFO roles after beginning his career in 1981 with Coopers & Lybrand. Most of his experience was in the engineering and construction industry with a majority of the time with p
Slide 29: David M. Smith, Esq. – Vice President, General Counsel
David M. Smith, Esq. – Vice President, General Counsel Mr. Smith is a licensed attorney in Texas with 40+ years of experience in the legal field of oil and gas exploration and production, manufacturing, purchase and sale agreements, exploration agreements, land and leaseholds, right of ways, pipelin
Slide 30: Jesse J. Allen – Vice President of Operations
Jesse J. Allen – Vice President of Operations Mr. Allen has 40+ years of experience operating and managing onshore and offshore oil and production in the US and internationally. He brings considerable knowledge as his expertise includes artificial lift, completions, well stimulation, workovers and o
Slide 31: Thank you for your interest in HNRA
Thank you for your interest in HNRA
HNR Acquisition — Investor Presentation (February 2024) on 6ix