Sanchez Energy Announces Second Quarter Production of 682 MBOE, an Increase of 92% Over the First Quarter of 2013 and an Increase of 772% Over the Second Quarter of 2012, Proved Reserve Growth of Over 100% Since Year-End 2012 to 43 MMBOE, and the Acquisition of an Additional 10,800 Net Acres in its Marquis Area.

HOUSTON, July 24, 2013 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil resource company targeting the onshore U.S. Gulf Coast with a current focus on the Eagle Ford Shale, today provided an update on its Second Quarter 2013 Operations.

Summary Highlights

• Estimated second quarter 2013 production of 682 MBOE (7,497 average BOE/d), an increase of 92% over the first quarter of 2013 and an increase of 772% over the same period a year ago.
• Proved reserves at June 30, 2013 of 43 MMBOE, an increase of 103% as compared to year-end 2012 and an increase of 187% as compared to the same period a year ago.
• 25 wells in various stages of drilling, completion, or initial flow back
• Entered into an agreement to acquire approximately 10,800 net acres in Fayette, Gonzales and Lavaca Counties in its Marquis area with 250 BOE/d of estimated net production for approximately $29 million.

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented:  "Our production and reserve growth continues to be strong, with both nearly doubling in the first half of the year. We successfully closed and have transitioned the Cotulla assets to our control as of June 1, 2013. We made the operational decision to accelerate the replacement of temporary flow-back facilities on 16 of the acquired wells in order to further reduce operating costs. Consequently, a number of wells were shut in to allow that work to occur, resulting in the deferment of approximately 25,000 BOE of expected June production to future periods. Also, as previously disclosed, the Prost C #7H well in our Marquis area is currently being sidetracked due to a contractor error during the cementing of the production casing. This well was scheduled to be on production for 60 days of the second quarter, resulting in the delay of approximately 29,000 BOE of production, which we now expect to come online in the second half of the year once the well is sidetracked and completed.

We currently have seven rigs running (6 net), having added a rig to drill the Prost C #7H sidetrack, and a sizeable backlog of 25 wells in various stages of drilling, completion, or initial flow back. This inventory of wells to be completed is the result of multi-well pad drilling, which we utilize in order to drive capital costs lower through more efficient drilling operations and the optimization of surface production and gathering facilities.

We expect to close on an acquisition in our Marquis area by the end of July, subject to normal closing conditions. This acquisition is comprised of approximately 10,800 net acres and is located just to the northwest of our Prost area in Marquis where we have seen strong performance from wells completed earlier this year. The acquisition also includes interests in seven wells with modest proved reserves and production, and we anticipate this acquisition to have multiple developmental synergies with our current Marquis program."

Estimated Second Quarter Production Volumes

Estimated total production for the second quarter of 2013 was 682.2 MBOE. Crude oil represented 77% of the total production stream, natural gas liquids represented 12%, and natural gas represented 11%.  The estimated 682.2 MBOE of total production compares to 78.2 MBOE in the second quarter of 2012, an increase of 772%, and an increase of 92% over the most recent quarter's total production of 354.9 MBOE.

Well Status Update

Sanchez Energy currently has seven rigs (five operated rigs and two non-operated rigs) running across its four core project areas. Two rigs are running in Palmetto with a third rig expected to be added by October. Three rigs are currently running in Marquis, one rig is running in Cotulla and one rig is running in Maverick. As detailed in the following table, the Company has 25 wells in various stages of drilling, completion or initial flow back:

About Sanchez Energy Corporation

Sanchez Energy Corporation is a Houston, Texas based growth oriented independent exploration and production company focused on the exploration, acquisition, and development of oil resources in the onshore U.S. Gulf Coast with a current focus on the liquids-rich Eagle Ford Shale, Austin Chalk, Buda Limestone, and Pearsall Shale.  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 assumption of unknown liabilities in the acquisition, failure of the acquired assets to produce as anticipated, failure to successfully integrate the acquired assets, the continued production of oil and gas at historical rates, realization of anticipated benefits from our recently closed acquisition, 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, 2012 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 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
Senior Vice President and Chief Financial Officer
Sanchez Energy Corporation
(713) 783-8000

SOURCE Sanchez Energy Corporation