Sanchez Energy acquires nearly 318,000 gross operated acres in Western Eagle Ford, US

Sanchez Energy has completed the previously announced acquisition of working interests in nearly 318,000 gross operated acres located in the Western Eagle Ford, US, from Anadarko Petroleum.

This Comanche deal was completed through a 50/50 partnership involving wholly owned subsidiaries of Sanchez with Blackstone Energy Partners.

Following purchase price adjustments associated with net cash flows from 1 July 2016, which totalled approximately $200m, the 50/50 partnership paid around $2.1bn to close the transaction ($1.05bn net to Sanchez Energy).

The Comanche transaction includes proved reserves of approximately 300 million barrels of oil equivalent (mmboe).

Sanchez Energy chief executive officer Tony Sanchez, III, said: “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. Our initial focus for the asset will be on completing the 132 gross drilled but uncompleted ('DUC') wells on the acreage, which we believe will allow for immediate and rapid production growth over the next 12 months. 

“The closing of this transaction increases our total net proved reserves to approximately 340mmboe, which represents an increase of approximately 78% from our year-end 2016 reserves. With the current development plan, we expect full year 2018 net production to be in excess of 100,000boe per day, double our average production rate for 2016.“

After closing the transaction, Sanchez Energy maintained a total liquidity of nearly $602m, which includes borrowing capacity of $457m under its credit facilities and approximately $145m in cash and cash equivalents.

Sanchez Energy focuses on acquisition and development of US onshore unconventional oil and natural gas resources.

In Eagle Ford Shale, South Texas, it holds approximately 335,000 net acres.