Sanchez Energy's Eagle Ford reserves have grown by 125% since the end of 2011. The company reported 15 million barrels of proved reserves with 87% being attributable to oil. An internal estimate pegs total resource potential at more than 250 mmboe from 800-1,200 wells.
Sanchez has approximately 95,000 acres stretched across portions of the black oil and volatile oil windows of the Eagle Ford. The company's prize asset is its 9,400 acres in the Palmetto area of Gonzales County. Sanchez has two rigs running in the Eagle Ford and plans for an additional rig in the Palmetto area in August. The company just completed a seismic study in the Palmetto area and has started a development program that will include 8-9 gross wells in the second half of 2012.
Current Eagle Ford production is 1,200 boe/d, with guidance is for 4,000-5,000 boe/d by the end of 2012. In addition to the Palmetto area, watch for vertical well results from the company's Maverick Area in Zavala and Frio counties. A vertical well test performed similarly to horizontal wells (264 boe/d IP) in the area and the company plans to test an additional 3-4 vertical wells. There's a possibility vertical wells will provide competitive initial production rates at much lower wells costs.
Find additional detail on individual well results at sanchezenergycorp.com