Sanchez Energy Corp., which is focused exclusively on the Eagle Ford Shale and the Tuscaloosa Marine Shale (TMS), kicked its total production volumes up nine-fold for the fourth quarter, more than seven-fold for the year, and saw gas production increase more than 3,000% in the fourth quarter.

Houston-based Sanchez reported Monday that production totaled 1.73 million boe (18,810 boe/d) during 4Q2013, which is 905% higher than the 172,000 boe (1,874 boe/d) produced in the preceding fourth quarter. Total production for the full-year 2013 was 3.87 million boe (10,607 boe/d), compared to 469,000 boe (1,281 boe/d) produced in 2012, a 726% increase in terms of total production volumes.

Total production for the fourth quarter included 1.27 million bbl of oil, 1.45 Bcf of natural gas and 224,000 bbl of natural gas liquids (NGL). Gas production increased 3,047% from 4Q2012, when it was just 46 MMcf. Meanwhile, for the full-year 2013, total production included 2.9 million bbl of oil, 3.05 Bcf of gas amd 455,000 bbl of NGL.

CEO Tony Sanchez called 2013 “a transformative year” for the company.

“Our production and reserves grew tremendously as a result of successfully executing our 2013 capital plan and completing several acquisitions,” Sanchez said. “We also entered into the TMS, providing significant upside potential without reallocating substantial resources from the Eagle Ford Shale. Our focus in 2014 will be to continue to execute on our Eagle Ford development program, increasing efficiency and further reducing costs.”

Earlier this month, Sanchez announced that it would spend $650-700 million on capital expenditures in 2014, with 90% earmarked for drilling and completion costs in the Eagle Ford and the remainder going to the TMS (see Shale Daily, Jan. 16). The company entered the TMS in the summer of 2013, and began making preparations to expand development there by the fall (see Shale Daily, Oct. 24, 2013; Aug. 9, 2013).

On Monday, Sanchez said it planned to use seven rigs (gross) for its 2014 drilling program, deploying 5.7 rigs to four projects areas — Cotulla, Marquis, Palmetto and Wycross — in the Eagle Ford, with the remaining 1.3 rigs sent to the TMS. The company said it plans to spud and complete 68 wells (net) in the Eagle Ford during the year, and two wells (net) in the TMS.

Sanchez currently has six rigs — four operated and two non-operated — deployed in the Eagle Ford, and one non-operated rig in the TMS. Fifteen wells (gross), all in the Eagle Ford, are currently in various stages of completion.

The company holds about 120,000 net acres in the Eagle Ford and 40,000 net acres in the TMS.

“Our operated assets of Cotulla and Marquis have transitioned into development mode and are benefiting from the cost and timing efficiencies of pad drilling and zipper fracs,” Sanchez said, adding that the company brought about 32 net wells online during the fourth quarter. “As a result of successful 40-acre pilot programs in our Palmetto, Cotulla, and Wycross areas, we have expanded our inventory of high quality drilling locations.

“While we continue to evaluate performance of 40-acre spacing for reserves impact, the results to date are highly encouraging, and we have modified development plans in these areas to maximize efficiency on 40-acre spacing.”

Sanchez also announced that its year-end proved reserves totaled 58.9 million boe at the end of 2013, up 178% from 21.2 million on Dec. 31, 2012. The company said crude oil accounted for 77% of proved reserves. Also, Sanchez said 58% of its proved reserves were classified as proved undeveloped at the end of 2013, compared to 82% at the end of 2012.