Sanchez Energy Corp. reported second quarter losses of half a billion dollars and is looking to its Eagle Ford operations to turn things around.
Related: Sanchez Energy Reports Strong Q1
Sanchez is continuing to position itself to withstand a prolonged low commodity pricing by taking a conservative approach to their planning; cost reductions, improve drilling efficiencies and strong well performance
In their Q2 earning call, they reported a total production of 4,907 thousand barrels of oil equivalent ("MBOE"), a 164% increase over the second quarter 2014 he company announced it has reduced 2015 capital spending estimate by $50 million or approximately 8% and now plan to spend between $550 million and $600 million.
“We have positioned the company to both thrive and grow in a $40 to $50 oil price environment. Improvement in our cost structure and production performance has allowed us to do more with less.”
The Company's Eagle Ford development plan remains primarily focused on Catarina, where the Company plans to average four gross (3.5 net) rigs over the course of 2015. Other Eagle Ford highlights include:
- We are currently ahead of schedule on our development program in the Eagle Ford. In Catarina we exceeded our first annual 50-well drilling commitment by drilling 68 wells, which allows us to bank 18 wells toward the next annual commitment period that ends in June of 2016.
- In the process of completing our first pad in North Western Catarina,
- Bought 35 gross wells online during the quarter
- Currently has 565 gross producing wells with 32 gross wells in various stages of completion
Read more at sanchezenergycorp.com