Sanchez Energy has agreed to purchase approximately 3,600 net acres with 12 Eagle Ford producing wells in McMullen County for $220 million from privately held Rock Oil. The assets have estimated proved reserves of 11 million boe (81% oil, 8% NGLs, 11% gas) and were producing 2,000 boe/d at the time of the announcement. Development is expected at 60-acre spacing, with potential for 40-acre spacing.
The deal adds a new primary development area for Sanchez named “Wycross” in McMullen County. The acreage is not shown on the map, but will be located just to the southeast of the “Cotulla-Maverick” area. A rig will be moved into the area in late 2013 and will begin a continuous development program. [Read more…]