HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil and gas company targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone, announced today that it has received commitments from its lending group to increase its available borrowing base under its $250 million first lien revolving credit facility from $27.5 million to $95 million effective immediately. The Company's Second Lien Credit Agreement remains unchanged.
Michael G. Long, SN's Senior Vice President and Chief Financial Officer, reported, "Our strong reserve growth and increased percentage of proved developed reserves has allowed a significant expansion of our available borrowing base under our revolving credit facility. That available amount has increased from $27.5 million to $95 million. Under the terms of our Second Lien Credit Facility, the lenders' $50 million commitment would have expired on January 31, 2013 unless drawn by such date. We drew the available $50 million on January 31, 2013 leaving us with $50 million of outstanding debt and approximately $95 million of cash on hand as a result. There is no usage under our revolving credit facility. The combined cash on hand and credit capacity substantially addresses our currently anticipated funding needs to meet our planned 2013 capital program. Our drilling schedule for the first half of 2013 is largely targeting proved undeveloped locations which we expect will result in further expansions to our borrowing base in the not too distant future."
About Sanchez Energy Corporation
Sanchez Energy Corporation is a Houston, Texas based growth oriented independent exploration and production company currently focused on the prolific Eagle Ford Shale trend of south Texas. The company has approximately 95,000 net acres targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone. For more information about Sanchez Energy Corporation, please visit our website: www.sanchezenergycorp.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Sanchez Energy expects, believes or anticipates will or may occur in the future are forward-looking statements, including statement relating to further expansions in our borrowing base. These statements are based on certain assumptions made by the company based on management's experience, perception of historical trends and technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and reasonable by management. When used in this press release, the words "will," "potential," "believe," "estimate," "intend," "expect," "may," "should," "anticipate," "could," "plan," "predict," "project," "profile," "model," or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements (including statements regarding expansions of our borrowing base) are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Sanchez Energy, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, including but not limited to, the continued production of oil and gas at historical rates, costs of operations, delays, and any other difficulties related to producing oil or gas, the price of oil or gas, marketing and sales of produced oil and gas, estimates made in evaluating reserves, competition, general economic conditions and the ability to manage and continue growth and other factors described in Sanchez Energy's Annual Report for the fiscal year ended December 31, 2011 and any updates to those risk factors set forth in Sanchez Energy's Quarterly Reports on Form 10-Q. Further information on such assumptions, risks and uncertainties is available in Sanchez Energy's filings with the Securities and Exchange Commission ("SEC"). Sanchez Energy's filings with the SEC are available on its website at www.sanchezenergycorp.com and on the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which such statement is made and Sanchez Energy undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Company contact: Michael G. Long Senior Vice President and Chief Financial Officer Sanchez Energy Corporation (713) 783-8000
SOURCE Sanchez Energy Corporation