Eon NRG Ltd (ASX:E2E) has gained more than 14% after grabbing 6,115 hectares of oil-and-gas leases in the Powder River Basin which extends across three counties in the US state of Wyoming.
The company highlighted the active oil-and-gas basin’s offset production history and prospective geologic reservoirs in a market update released today.
Eon managing director John Whisler said: “The Powder River Basin is a prolific multi-stack hydrocarbon-filled basin in North America and these acquisitions add substantial value for our shareholders through the development of the multiple geological targets.”
A number of the new land parcels are contiguous, with Eon viewing their proximity as leaving it room for expansion.
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Eon manages its interests in Wyoming through its US subsidiary, a bonded operator in the state.
The subsidiary now has 9,307 hectares in its Wyoming portfolio, which parent company Eon views as of a size to give “scale to future growth”.
Eon previously acquired ground on five-year tenures from the State of Wyoming.
The company is currently undertaking a geological and technical review of its newly-acquired lease ground.
It expects to grade the best drilling opportunities at the leases, increasing the value of the ground.
As Eon plans to report on each of its new prospects as they reach drilling permitting stage and the company decides to sole-fund future efforts or enter into joint venture or farm-out agreements.
Powder River Basin is one of the most productive oil-and-gas basins in the US, attracting quality outfits such as US$34.21 billion field operator Anadarko Petroleum Corporation (NYSE:APC) and US$4.62 billion producer Chesapeake Energy Corporation (NYSE:CHK) (FRA:CS1) (BMV:CHK) (BVMF:CHKE34).
Eon’s securities closed 0.1 cent, or 14.29%, up to 0.8 cents by late afternoon.