EAGLE FORD: SANCHEZ ENERGY COMPLETES COMANCHE TRANSACTION

Sanchez Energy announced the closing of the previously announced Comanche Transaction, with the acquisition of working interests in approximately 318,000 gross operated acres in the Western Eagle Ford from Anadarko Petroleum through a 50/50 partnership involving wholly-owned subsidiaries of the Company and with Blackstone Energy Partners. After purchase price adjustments associated with net cash flows from July 1, 2016, which totaled approximately $200 million, the 50/50 partnership paid approximately $2.1 billion ($1.05 billion net to Sanchez Energy) to close the transaction, which includes proved reserves of approximately 300 million barrels of oil equivalent. Tony Sanchez, Chief Executive Officer of Sanchez Energy 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). Our initial focus for the asset will be on completing the 132 gross drilled but uncompleted 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 340 million barrels of oil equivalent, which represents an increase of approximately 78 percent from our year-end 2016 reserves. With the current development plan, we expect full year 2018 net production to be in excess of 100,000 barrels of oil equivalent per day, double our average production rate for 2016. (Source and image: Sanchez Energy / Sanchez rig drilling the Eagle Ford Play in southwest Texas)