Sanchez Energy to dispose Javelina asset in US for approximately $105m
US-based exploration and production company Sanchez Energy has signed an agreement to sell its Javelina asset in the Eagle Ford shale to an undisclosed buyer for about $105m in cash.
The Javelina acreage encompasses proven Eagle Ford down-dip areas and comprises around 70,000 net acres in LaSalle and Webb Counties, Texas.
According to the company, the acreage contains an average estimated ultimate recovery (EUR) per well, ranging between 1,500 million barrels of oil equivalent (mmboe) and 2,500mmboe.
Sanchez Energy CEO Tony Sanchez III said: “This transaction highlights the value creation that our grass roots leasing programme 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 company identified more than 450 gross locations for potential drilling in the Javelina area.
Prior to the transaction, Sanchez owned around 335,000 net leasehold acres in the Eagle Ford Shale, with 3,300 projected future drillable gross locations.
Other lease holdings in the shale play include the Catarina area, where the company has around 106,000 net acres in the Dimmit, LaSalle and Webb counties; Texas, with an estimated EUR per well of 400mmboe and 1,200mmboe; and around 77,500 net acres in the Comanche area.
In addition, the company owns acreage in the Palmetto, Marquis and Maverick areas.