U.S. Markets closed

Sanchez Energy to purchase Eagle Ford assets for $220M

Sanchez Energy Corporation announced that it has executed a definitive agreement to purchase assets in the Eagle Ford Shale consisting of approximately 11 MMBOE of proved reserves and 2,000 BOE/D of current production on approximately 3,600 net acres in McMullen County, Texas for approximately $220M in cash, subject to customary adjustments. Reflecting the pending acquisition, Sanchez Energy also announced a preliminary 2014 operating capital plan of $700M to spud 76 net wells and complete 79 net wells along with related facilities, leasing, and geologic and geophysical activities. Sanchez Energy has also revised its 2013 Operating Capital Plan from $475M to $470M reflecting its continued reduction in drilling and completion costs per well due to efficiency gains from pad drilling. Additionally, the company plans to spud an additional two wells and complete one additional well in the Wycross area.