HOUSTON, Aug. 28, 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 South Texas, today provided an interim operations update highlighting its most recent well completions in southern Fayette County, Texas, located within its Marquis project area, where the Company has approximately 51,000 net acres in its core Fayette and Lavaca County area.
The Prost #1H (100% W.I.) was drilled to a total measured depth of 16,216 feet (with a 5,537 foot lateral) and was completed with a 14-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,120 barrels of oil equivalent per day (BOE/d) on a 22/64-inch choke. The Prost #2H (100% W.I.) was drilled to a total measured depth of 17,168 feet (with a 5,500 foot lateral) and was completed with a 17-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,369 BOE/d on a 22/64-inch choke. Production from both wells consists of approximately 90% 43-degree API gravity crude oil and 10% 1,400 BTU natural gas.
With approximately 51,000 net acres in its core Fayette and Lavaca County area in the Marquis area, the Company estimates it has between 420 and 630 future drilling locations in the project area, assuming an acreage spacing range of 120 to 80 acres. The Company believes that these future drilling locations in the Marquis area represent net resource potential of 140 million - 210 million barrels of oil equivalent from the Eagle Ford. The area is also prospective for the Austin Chalk, Pearsall Shale, and Buda Limestone. Currently drilling in the Marquis area is the Sante #1H. After completing this well the rig is anticipated to move back to the Prost area, where the Company estimates it has up to 32 additional development locations. In the Prost area, the Company is planning on constructing central production and gas gathering lines to facilitate an expanded development program.
The Company believes the strong performance of these most recent wells in the Marquis area, coupled with the previously announced Mark & Sandra #2H in the Company's Maverick area, which had an initial 24-hour production rate of 931 BOE/d, demonstrate the progress made in substantially de-risking the majority of the Company's acreage position in the Eagle Ford Shale trend. In its Maverick area, the Company has approximately 28,500 net acres, and estimates that it has between 235 and 350 future drilling locations with an estimated 60 million to 90 million barrels of oil equivalent of net resource potential.
Across its entire 95,000 net acre position in the liquids rich Eagle Ford trend, the Company estimates it has between 800 and 1,200 future drilling locations targeting Eagle Ford estimated net resource potential of between 245 million and 365 million barrels of oil equivalent.
Tony Sanchez III, Chairman and CEO, stated, "Continuing on a series of strong and improving well results from our operations, we are proud to announce that our first two wells in the Marquis area flowed at initial production rates of 1,120 BOE/d and 1,369 BOE/d. We believe that the impact of our latest Marquis wells is significant, as we have approximately 51,000 net acres with 100% working interest and thus a substantial amount of running room in this area. Based upon the performance from these wells, where the Prost #1H was completed with 14 frack stages and the Prost #2H was completed with 17 frack stages, we anticipate that subsequent wells will be completed with longer laterals and more stages, resulting in higher flow rates and EURs as we optimize our drilling and completion practices. That trend, combined with recent developments of down-spacing across the Eagle Ford play, reinforces the growth we expect to be delivered as we continue to execute our drilling program."
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 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
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. You should not place undue reliance on these 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. Although we believe our plans, intentions and expectations reflected in or suggested by these statements are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. 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. 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.
Michael G. Long
Senior Vice President and Chief Financial Officer
Sanchez Energy Corporation
SOURCE Sanchez Energy Corporation