Sanchez Production Parters (SPP) and Sanchez Energy Corp have closed on two deals involving Eagle Ford assets valued at over $600 million.

Related: Sanchez Reports Excellent Third Quarter

In the first deal, SPP acquired a 50% interest in Carnero Processing, LLC from Sanchez Energy Corporation for $80 million, including $55.5 million in cash and assuming $24.5 million for capital commitments to Carnero Processing. Carnero Processing is currently constructing a cryogenic natural gas processing plant in La Salle County. The “Raptor Plant” will be connected to Sanchez Energy’s Catarina via the Carnero Gathering System.

The company also closed on its acquisition of producing oil and natural gas assets, paying $25.6 million in cash to Sanchez Energy at closing.

These transactions are expected to add an average of 700 Boe/d of production in 2017.  The estimated proved reserves from the producing wellbores is approximately 2,136 MBoe, of which 73% is oil, 13% natural gas liquids, and 14% natural gas.

Sanchez Energy reported and excellent third quarter for 2016. The company is currently running three rigs in the Eagle Ford, with plans to drop to two rigs during the fourth quarter. Executives estimate the company has over 350 Upper Eagle Ford locations with returns in excess of 50%

Read more at sanchezproductionpartners.com