Sanchez Energy has sold 21,000 Eagle Ford acres to Lonestar Resources in order to shift its focus to the other side of the region.
Related: Sanchez Gains Eagle Ford Assets for $2.1 Billion
Sanchez announced this week they will divest of non-core assets in Fayette and Lavaca Counties for $50 cash and 1.5 million shares of stock.
This recent deal is part of Sanchez' strategy to increase its focus on the growth of the Comanche, Catarina and Maverick areas of the Western Eagle Ford.
Purchase Highlights
- Cash consideration of $50 million and Lonestar preferred stock that is structured to convert into 1.5 million shares of common stock;
- Assets consist of approximately 21,000 net acres primarily located in Fayette and Lavaca Counties, Texas;
- Net proved reserves of 2.7 MMBoe (100% developed); and
- Net production of approximately 1,750 barrels of oil equivalent per day (“Boe/d”) (74% oil) from 104 gross (65 net) wells.
“The acquisitions announced today are transformational for Lonestar. We have scaled our business with Eagle Ford Shale properties that are located in our core area which our technical team understands extremely well. ”
In March, Sanchez closed on a $2.1 billion deal with Anadarko Petroleum through a 50/50 partnership with Blackstone Energy Partners. The 'Comanche Transaction' increased Sanchez' total net proved reserves to approximately 340 MMBoe, a 78% increase from year-end 2016 reserves.