Sanchez Energy Corp. has agreed to sell its natural gas-rich Javelina property in the Eagle Ford Shale in South Texas to an undisclosed buyer for $105 million.
The Houston-based producer said Thursday the agreement should be completed by the end of September.
"This transaction highlights the value creation that our grass roots leasing program has delivered," said CEO Tony Sanchez III. "Over the last 18 months, we leased approximately 70,000, largely contiguous, net acres in the dry gas window of the Eagle Ford. This transaction accelerates the value of the asset, while building our liquidity and providing value to our shareholders."
According to a corporate presentation by the company earlier this month, Javelina holds 340 net drilling locations in LaSalle and Webb counties, with estimated ultimate recovery of 12 Bcfe. Total value, including future production, is estimated $601 million.
In June, Sanchez agreed to sell 21,000 net acres within its Marquis asset in the Eagle Ford to Lonestar Resources US Inc. for $50 million. Anadarko Petroleum Corp. in January sold its entire Eagle Ford portfolio to a 50-50 joint venture between Sanchez and Blackstone Group LP for $2.3 billion.