Sanchez Energy Provides An Interim Operations Update

HOUSTON, Aug. 6, 2012 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil and gas company with a 95,000 net acre position in the liquids-rich Eagle Ford formation in Texas, today provided an interim operations update on its Eagle Ford drilling and completion activities.

In the Company's last operations update, Sanchez Energy reported it had five wells drilled, cased, and waiting on completion. Subsequently, the Mark & Sandra #2H (100% W.I.), a well in the Company's Maverick project area and drilled to a measured depth of 11,950 feet (lateral length of 5,476 feet), was completed with a 19-stage fracture stimulation job and brought on line in late July.  Over a twenty-four hour period, the well produced at a maximum rate of 1,041 barrels of oil equivalent per day (BOE/d) with an initial daily production rate of 931 BOE/d.  Approximately 97% of the production stream consisted of crude oil.

The strong performance of this most recent well, coupled with the continuously improving results from the previously announced wells in this area, demonstrates that the Maverick area continues to respond positively to both long-lateral horizontal and single-stage vertical completions.  With four horizontal and two vertical wells drilled in the Maverick area this year, our 28,500 acre position is substantially de-risked, thereby providing a repeatable, high-margin source of oil production and reserve growth for the Company.  Progressive changes in completion practices and tighter spacing have resulted in steadily improving well results and cost reductions.  It is anticipated that the drilling plan for the remainder of 2012 and 2013 will entail sequentially tighter spacing of both horizontal and vertical wells.

The table below provides a status update on the Company's other two areas (Palmetto and Marquis):

Additionally, 3D seismic in the Palmetto area has been acquired and processed for high-grading future locations.  The Company anticipates that the wells drilled in the second half of 2012 will be principally located in the southern portion of the Palmetto acreage, offsetting some of the highest rate wells in the Eagle Ford trend.

Management Comments

Tony Sanchez, III, President and Chief Executive Officer, said, "We are very pleased with the results of the Mark & Sandra #2H and our continued success in improving the drilling and completion techniques on the Maverick asset.  In this area, we are continuing to drive both drilling days and completion costs down and are confident that we will be able to consistently drill and complete horizontal wells for $6 million or less and vertical wells for $1.5 million or less.  This focus on cost reduction, combined with well performance improvement, will provide for a steady source of high-return drilling locations across our large acreage position."

Sanchez continued:  "Based on these encouraging results, the Company is re-evaluating its drilling and capital plan for the remainder of 2012 and early 2013 to accommodate drilling additional vertical and horizontal wells, offsetting these strong performers in this area where it has demonstrated accelerating operational momentum."

Sanchez Energy Corporation is a Houston, TX 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 in the volatile oil, black oil, and gas condensate windows of the Eagle Ford.  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.  Further information on such assumptions, risks and uncertainties is available in Sanchez Energy's filings with the Securities and Exchange Commission ("SEC") filings. The 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 use certain terms in this press release, 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