Sanchez Energy, focusing its development in the Eagle Ford, stands out in the midst of a sea of suffering oil & gas producers.
The crude price slump has taken its toll on a number of producers who have not been able to adjust enough to stay afloat. Six producers have filed bankruptcy since the first the year; American Eagle Energy, Quicksilver Resources, BPZ Resources, Sabine Oil & Gas, WBH Energy and Walter Energy. Analysts are warning that this is just the tip of the iceberg and many are forecasting bankruptcies will increase later in the year.
Related: Sabine Files Chapter 11
In the midst of the uncertainty, Sanchez is having a really good year. A few weeks after releasing a strong Q1 report, the company’s second quarter earnings show that current volumes are the highest in the company’s history.
“During the second quarter 2015, we had success on a number of fronts.Estimated production for the second quarter 2015 averaged approximately 53,920 BOE/D. As a result of operational efficiencies, we are now able to drill and complete wells at a faster pace and at lower costs. Our innovative procurement strategy and continued focus on cost reduction has enabled us to drive capital costs down and deliver average well costs under $4.5 million per well in Catarina during the second quarter.”
Q2 Highlights:
- Record production of 4,907 thousand barrels of oil equivalent ("MBOE") during the second quarter 2015 for average production of 53,920 barrels of oil equivalent per day ("BOE/D")
- Shorter drilling times and strong production from recent wells put on production at Catarina.
- Current production is approximately 53,000 BOE/D.
- The two most recent two-well pads at South-Central Catarina have averaged 24-hour initial production rates between 1,400 and 1,800 BOE/D
- Increasing its full year 2015 production range to 44,000-48,000 BOE/D.
- 32 wells required to be drilled before June 30, 2016
- Decreased well costs from $6.5 million per well to below $4.5 million
In May, Sanchez announced that Gleeson Van Riet has been named Senior Vice President and Chief Financial Officer of the company. Van Riet is replacing Mike Long, who retired on April 30, 2015.
Read more at sanchezenergycorp.com