Sanchez Energy Provides Interim Eagle Ford Shale Production and Operations Update Production Rate Increases 159% to 4,400 BOE/d

HOUSTON, Dec. 11, 2012 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil and gas company with a 95,000 net acre position targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone, today provided an interim drilling and production update on the Company's activities.

Sanchez Energy's estimated current net production rate is approximately 4,400 barrels of oil equivalent ("BOE) per day, of which approximately 84% was oil. This rate represents a 159% increase over the third quarter 2012 net production exit rate of 1,700 BOE/d. 

Tony Sanchez III, President and Chief Executive Officer said: "We continue to see strong well performance across our three focus areas as we execute on the remainder of this year's development plan. Additionally, we are testing tighter spacing in each of our positions in the Eagle Ford trend, and more specifically, one of the rigs in our Palmetto area is drilling the first of a 5-well, 40-acre spacing pilot on the southern part of the Barnhart ranch. As we continue more development-type drilling in each project area, our goal is to drive organic growth in our production flow-rates and booked reserves while continuing to aggressively reduce finding and development costs through drilling and completion efficiencies. Our planned comprehensive year-end press release, which we expect in the last week of January, will provide more specific well by well operating data, update our proved reserve volumes, and provide more 2013 operational and financial guidance."

The Company is currently running two rigs in the Palmetto area, one rig in the Maverick area, and two rigs in the Marquis area. The following table provides details on current operations:

Well  


Area  


Working

Interest  


Status  

Ward E #1


Palmetto


50%


Producing

Barnhart #14


Palmetto


50%


Producing

Barnhart #15


Palmetto


50%


Producing

Barnhart #18


Palmetto


50%


Producing

Barnhart #19


Palmetto


50%


Producing

Barnhart A #1


Palmetto


50%


Completing

Barnhart A #2


Palmetto


50%


Completing

Barnhart C #2


Palmetto


50%


Waiting On Completion

Barnhart C #3


Palmetto


50%


Drilling

Barnhart #23


Palmetto


50%


Drilling

Prost B #1H


Marquis


100%


Producing

Prost B #2H


Marquis


100%


Drilling

Prost C #1H


Marquis


100%


Drilling

Mark & Sandra #3H


Maverick


100%


Initial Flow Back

Petro-Pards #3H


Maverick


100%


Completing

Petro-Pards #4H


Maverick


100%


Waiting On Completion

Woodbury #1V


Maverick


100%


Waiting On Completion

Soliz #1V


Maverick


100%


Drilling

 

Expected Remaining 2012 Drilling Schedule:

Sanchez Energy expects to spud up to five wells between mid-December and year-end 2012. The table below describes the Company's expected remaining 2012 drilling schedule:

Well


Area


Working Interest


Anticipated Spud Date

Barnhart #25


Palmetto


50%


Mid-December 2012

Barnhart #30


Palmetto


50%


Late December 2012

Prost B #3H


Marquis


100%


Mid-December 2012

Prost C #2H


Marquis


100%


Mid-December 2012

Prost C #8H


Marquis


100%


Late December 2012

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 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. 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 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.

Cautionary Note to U.S. Investors

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use certain terms in our press releases, such as total resource potential and other variations of the foregoing terms that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the reserves disclosures in our filings with the SEC available on our website at www.sanchezenergycorp.com and the SEC's website at www.sec.gov. You can also obtain this information from the SEC by calling its general information line at 1-800-SEC-0330.

Company contact:
Michael G. Long
Senior Vice President and Chief Financial Officer
Sanchez Energy Corporation
(713) 783-8000

SOURCE Sanchez Energy Corporation



RELATED LINKS
http://www.sanchezenergycorp.com

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