Sanchez Production Partners (SPP) moves forward with plans to acquire new Eagle Ford assets.
Related: Eagle Ford Midstream Deal Worth $44 Million
Sanchez Production Partners announced last week that it has executed agreements with Sanchez Energy Corporation to purchase a working interests in 23 producing Eagle Ford wellbores in Dimmit and Zavala counties plus an escalating working interests in an additional 11 producing wellbores in Gonzales County.
This transaction will 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.
An additional transaction includes a $47.7 million agreement to acquire Sanchez Energy’s 50% interest in Carnero Processing, which 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.
“Proceeds from the transactions, which are expected to close in the fourth quarter 2016, are expected to enhance the company’s already strong liquidity position which, as of the end of the third quarter 2016, totaled approximately $629m, consisting of approximately $329m in cash and cash equivalents and an undrawn bank credit facility with an elected commitment amount of $300m.”