Sanchez Energy Announces Revised 2014 Capital Plan, Interim Operations Update, and Participation at the Howard Weil 42nd Annual Energy Conference

HOUSTON, March 25, 2014 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN) ("Sanchez Energy" or the "Company"), a rapidly growing independent oil and gas company targeting onshore U.S. Gulf Coast resource plays with a current focus on the Eagle Ford Shale and the Tuscaloosa Marine Shale, today announced a revised 2014 capital plan, an update on its current operations, and its participation at the Howard Weil 42^nd Annual Energy Conference.

Summary Highlights

• Sanchez Energy lowered its total 2014 capital plan to $600 million - $650 million from $650 million - $700 million as a result of significant decreases in drilling and completions costs and efficiency improvements
• Full-year 2014 production guidance and well count to remain unchanged
• Current production of approximately 19,500 BOE/D
• 6 (gross) rigs running with 15 (gross) wells in various stages of completion
• Members of the Company's management team will be attending the Howard Weil 42^nd Annual Energy Conference in New Orleans, Louisiana from Wednesday, March 26 until Thursday, March 27. The presentation materials used for the conference will be available for download by visiting the Company's website: www.sanchezenergycorp.com

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "After achieving and sustaining significant drilling and completion cost reductions as a result of continued operational improvements, we have decreased our 2014 capital plan to $600 million - $650 million from $650 million - $700 million while maintaining our full-year 2014 production guidance and without reducing the number of wells to be spud and completed. On the drilling side, we expect 90% of our wells to be on multi-well pads in 2014, up from 75% in 2013. The increase in multi-well pads has allowed us to achieve a 40% decrease in drilling time from spud to total depth and a 35% increase in average footage drilled per day. On the completions side, on average we have doubled the number of frac stages pumped per day and seen services costs continue to decline due to the use of zipper fracs on our multi-well pads. Overall, we have realized a 30% decrease in total well costs across our areas. These cost reduction factors have caused our production growth to be less consistent quarter over quarter due principally to the effects of multi-well pad drilling, but the increased capital efficiency is a significant benefit to our overall rates of return. We now anticipate well costs in the Alexander Ranch and Wycross areas of Cotulla to be between $5.5 million and $6.0 million and $7.5 million and $8.0 million, respectively. In the Marquis area, we anticipate well costs to be between $8.0 million and $8.5 million, a significant reduction from our initial appraisal phase well costs of $11 million to $14 million."

"We have now drilled our sixth and final pilot well at Prost O-1 in the Marquis appraisal program. Based on whole cores from pilots and extensive wire line logs from all six wells, we now have growing data indicating there is potential for a multi-horizon Eagle Ford resource play across portions of our Marquis block. Currently, our Marquis development has exclusively focused on the Lower Eagle Ford section, and we are excited about the additional potential for Upper Eagle Ford pay in this area. We have seen strong well results in the Prost block from Lower Eagle Ford zones of interest ranging from 25 feet to over 40 feet in thickness and recently obtained logs and cores have identified an Upper Eagle Ford zone of interest with similar thickness ranging from 10 feet to 45 feet across sections of our Marquis block. Additionally, seismic analysis indicates good Austin Chalk potential present in this block. As such, we are developing plans to separately appraise the Upper Eagle Ford and Austin Chalk resource potential later this year."

2014 Revised Capital Plan and Operations Update

Sanchez Energy's revised 2014 capital plan calls for spending $600 million - $650 million, down from $650 million - $700 million, to spud and complete 70 net wells and fund production facilities and related expenditures, additional acreage acquisitions, and seismic expenditures. Approximately 94% of the revised capital plan will be allocated towards drilling and completing wells, of which approximately 89% will be directed to the development of our Eagle Ford Share properties as outlined below:

As detailed in the table below, Sanchez Energy currently has 6 rigs (4 operated and 2 non-operated rigs) running across its Eagle Ford areas with 15 gross wells in various stages of completion.

About Sanchez Energy Corporation

Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale where the Company has assembled approximately 120,000 net acres. The Company also has approximately 40,000 net acres targeting the Tuscaloosa Marine Shale. For more information about Sanchez Energy Corporation, please visit our website: www.sanchezenergycorp.com

Forward Looking Statements

This press release contains, and our officers and representatives may from time to time make, 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 statements relating to the anticipated benefits of our acquisitions, any planned takeover of operations, future down-spacing and movement to pad drilling to further reduce costs and to produce additional upside potential and other aspects of any proposed acquisitions, and the rate of development of new plays that we enter into. 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," "strategy," "future," 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 failure of acquired assets to produce as anticipated, failure to successfully integrate acquired assets, failure to continue  to produce  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, 2013 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.  In light of these risks, uncertainties and assumptions, the events anticipated by Sanchez Energy's forward-looking statements may not occur, and, if any of such events do occur, Sanchez Energy may not have correctly anticipated the timing of their occurrence or the extent of their impact on its actual results.  Accordingly, you should not place any undue reliance on any of Sanchez Energy's forward-looking statements.  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 net 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
Executive Vice President and Chief Financial Officer
Sanchez Energy Corporation
(713) 783-8000

Gleeson Van Riet
SVP, Capital Markets & IR
Sanchez Energy Corporation
(713) 783-8000

SOURCE Sanchez Energy Corporation