Sanchez Energy Corp. has sold one piece of its Eagle Ford Shale portfolio to concentrate more funding in the western part of the formation, the Houston-based independent said Friday.
In a cash-and-stock deal with Lonestar Resources US Inc., Sanchez agreed to sell 21,000 net acres within its Marquis assets, primarily in the Texas counties of Fayette and Lavaca. The assets to be sold include proved reserves of 2.7 million boe net, 100% developed, from 104 gross (65 net) wells.
Under terms of the transaction, Sanchez would be paid $50 million in cash and receive Lonestar preferred stock that would converted into 1.5 million shares of common stock.
Over the past several years, Sanchez has limited its capital in the Marquis. Divesting the assets is part of the operator’s strategy to increase liquidity and financial flexibility.
Sanchez today is focused on growing its western Eagle Ford assets within the Comanche, Catarina and Maverick areas, where it has accumulated more than 340,000 net acres since March.
Earlier this year, Sanchez with Blackstone Group LP agreed to pay $2.3 billion to buy Anadarko Petroleum Corp.’s Eagle Ford portfolio, which now is the bulk of the company’s western properties.
The initial focus in the acquired acreage has been to reduce the drilled but uncompleted well inventory. In April, Sanchez was producing at a record level of 76,000 boe/d.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 2158-8023 |