Sanchez Energy $2.1 Billion Deal
Sanchez Energy Corporation has completed the purchase of 318,00 acres in the Eagle Ford.
Related: Sanchez Production Partners Gain Eagle Ford Assets
Sanchez announced last week it closed on a $2.1 billion deal with Anadarko Petroleum through a 50/50 partnership with Blackstone Energy Partners.
The 'Comanche Transaction' is expected to increase Sanchez' total net proved reserves to approximately 340 MMBoe, a 78% increase from year-end 2016 reserves. The company plans to focus initially on completing the 132 gross drilled but uncompleted wells currently in the acreage.
“With the closing of the Comanche Transaction, the Company’s operated Eagle Ford position is now approximately 585,000 gross acres (335,000 net to Sanchez Energy). The contiguous nature of the acquired acreage relative to our Catarina asset creates an opportunity for significant operational and cost synergies.”
Full Year Highlights
- Acquisition of 65,000 acres in the oil window of the Western Eagle Ford, and 45,000 acres in the dry gas window of the Western Eagle Ford
- Total 2016 production of 19.5 million barrels of oil equivalent (“MMBoe”)
- Drilling and completion costs during 2016 at Catarina and Maverick averaged approximately$3.0 million per well
- Full year 2016 revenues were approximately $431 million
In December, Sanchez closed on two deals involving Eagle Ford assets valued at over $600 million. These transactions are expected to add an average of 700 Boe/d of production in 2017. Sanchez Production Partners acquired a 50% interest in Carnero Processing, LLC from Sanchez Energy Corporation for $80 million including. Carnero Processing is currently constructing a cryogenic natural gas processing plant in La Salle County.