Sanchez Energy Corporation announced it has finalized the sale of 70,000 net acres in LaSalle and Webb Counties.
Eagle Ford Losses Horizontal Drilling Rigs
Sanchez reported last week it closed on the sale of its 'Javelina' assets for a $105 million cash deal. Though largely undeveloped, the company previously identified the area as having the potential for greater than 450 drilling locations.
““This transaction highlights the value creation that our grass roots leasing program has delivered. Over the last eighteen months we leased approximately 70,000, largely contiguous, net acres in the dry gas window of the Eagle Ford. This transaction accelerates the value of the asset, while building our liquidity and providing value to our shareholders.””
The Javelina acreage is located in the dry gas window of the Western Eagle Ford, in LaSelle and Webb Counties. Sanchez reported having 39,500 net acres in Javelina at the end of 2016, rising to 70,000 net acres (over 450 net locations) by the time of the sale.
Production Strong Despite Hurricane Harvey
Like many other operators in the Eagle Ford, Sanchez was forced to suspend operations when Hurricane Harvey hit the state. Despite the storm, the company reports it is experiencing strong well results across all of its Western Eagle Ford acreage, which has led to a steady increase in production during the quarter.
Sanchez is currently on track to deliver expected third-quarter results, producing at a rate of over 75,000 Boe/d.