Sanchez Energy ended 2012 with production of approximately 4,500 boe/d. That’s a 233% increase over year-end 2011 and over 150% growth from the third quarter of 2012. Proved reserves were estimated at 21.2 million boe.
The company also released well results from its most recent wells:
- The Prost B #1H, in the Marquis Area, produced 1,114 boe in the first 24 hours and 936 boe/d over the first 30 days (14/64ths choke)
- The Barnhardt #15, in the Palmetto area, produced 3,139 in the first 24 hours on a 32/64ths choke, but was later restricted to a 16/64ths choke
Tony Sanchez III, CEO said, “Tighter well-spacing tests in each of our project areas is expected to result in a material increase of our net identified Eagle Ford drilling locations, proved reserves, and net resource potential, which is currently based on 80 to 120 acre well spacing. In the Palmetto area, we are drilling the third well of a 5-well, 40 acre spacing pilot on the southern part of the Barnhart ranch. In Marquis we are also drilling a 60 acre spacing test in the western Prost area. Our assets also hold potential from the Buda Limestone, Austin Chalk, and Pearsall Shale formations that provide additional upside opportunities. We foresee drilling and testing additional formations in the second half of 2013 to further understand the potential of our existing acreage.”
The company’s 2013 capital budget will be announced in February after the company’s board meeting.