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[STK] NYSE:SN
[IN] OIL UTI
[SU]
TO BUSINESS EDITORS:
Sanchez Energy Announces First Quarter 2014 Production of 1,691 MBOE,
an Increase of 376% over the First Quarter of 2013
HOUSTON, April 28, 2014 /PRNewswire/ -- Sanchez Energy Corporation
(NYSE: SN) ("Sanchez Energy" or the "Company") today provided an
update on its first quarter 2014 production and operations. Summary
Highlights
-- Sanchez Energy reported first quarter 2014 production of
approximately 1,691 MBOE (18,784 BOE/D), an increase of 376% compared
to the same period a year ago
-- Reported production volumes consisted of 72% oil, 15% NGLs, and 13%
natural gas
-- Current production is approximately 21,000 BOE/D with 13 gross
wells in various stages of completion
Tony Sanchez, III, President and Chief Executive Officer of Sanchez
Energy, commented: "Our ability to more than triple our first quarter
production year over year reflects positively on both the quality of
our assets and the efficiency of our operations. Moving forward, we
will continue to leverage our proprietary systems and drilling
processes to drive down costs per well, reduce drill time and enhance
our capital efficiencies. This strategy already has effectively
reduced drill time by 40%, doubled the number of frac stages pumped
per day and decreased total well costs by 30% across our Eagle Ford
operations."
Production Overview
"Production of 18,784 BOE/D for the first quarter of 2014 is within
our guidance range of 18,000 to 20,000 BOE/D and at the high end of
our recent guidance updates. We were able to accelerate some
completions that were originally planned for early 2014 into last
year's fourth quarter, resulting in the majority of the 20 gross (14
net) new wells for the quarter coming online in late February and
March."
"We have advanced our operations to include much more pad drilling,
which helped raise our current production to approximately 21,000
BOE/D. Moving forward, we expect strong - if a bit uneven - production
growth, which is customary with more aggressive pad drilling. We view
this as a welcome trade-off, as this more efficient drilling practice
is a significant driver of our reported cost savings. That noted, we
reiterate our full year 2014 production guidance range of 21,000 to
23,000 BOE/D."
Eagle Ford Operations Update
"Eagle Ford operations continue to be in full-scale development mode
with six gross rigs running across our areas. In the Five Mile Creek
area of Marquis, we are drilling the last well of a four-well pad,
which is expected to further de-risk that 10,000 net acre position. We
also recently brought online the Prost O #1H - our sixth and final
pilot well in the Marquis appraisal program - at rates consistent with
our other Prost area wells. This step-out well just east of our main
Prost acreage block position has further expanded our inventory. After
cleaning out the Sante North #1H well in our Marquis area, the well
was returned to production with an initial 24-hour production rate of
215 BOE/D. While we continue to monitor production in the Lower Eagle
Ford section of the Sante-area wells, we plan to shift appraisal focus
to other horizons, including the Upper Eagle Ford and Austin Chalk in
the greater Sante area. Our expectation for additional resource
potential from these other horizons continues to grow as we better
understand the area."
"In our Wycross area, we initiated a multi-well pad program in the
first quarter and have already realized cost improvements with
drilling costs of approximately $3.0 million versus the previous
operator's average cost of $3.3 million. The last well on this pad is
currently drilling the curve on its 5th day and is expected to have a
drilling cost of below $3 million."
Tuscaloosa Marine Shale Operations Update
"We expect to spud our first operated TMS well, the Dry Fork East #2H,
in Wilkinson County, Mississippi during May. Our plan is to appraise
the acreage by drilling a pilot hole, taking extensive cores and
running additional logs as we build our knowledge base in this area.
This well has a planned 7,000 foot lateral. We expect to use the rig
that will drill the Dry Fork East well continuously this year, which
should enable us to spud four gross operated wells in addition to
participating in 10 -15 gross non-operated wells."
"We are pleased with recent results coming from the TMS play. We
anticipate having non-operated interests in up to five wells that are
either drilling now or are expected to spud during the second quarter
- not including the Lawson 25H-1 well, which has seen very good
sustained production rates from a short, 3,800-foot lateral with only
14 frac stages. The next several months should see a steadily
increasing number of TMS well results from multiple operators."
Estimated First Quarter 2014 Production Volumes and Operational Update
Estimated total production for the first quarter of 2014 was
approximately 1,691 MBOE (18,784 BOE/D). Crude oil represented 72% of
the total production stream, natural gas represented 13% and NGLs
represented 15%.
Three Months Ended March 31,
2014 2013 % Change
Total Production Volumes
Oil (MBbls) 1,219 277 340%
Natural Gas (MMcf) 1,322 219 505%
NGLs (MBbls) 252 42 507%
Total Production Volumes (MBOE) 1,691 355 376%
Average Daily Production Volumes
Oil (Bbls/d) 13,539 3,077 340%
Natural Gas (Mcf/d) 14,691 2,429 505%
NGLs (Bbls/d) 2,797 461 507%
Total Production Volumes (BOE/D) 18,784 3,943 376%
As detailed in the table below, Sanchez Energy currently has six gross
rigs (five operated and one non-operated rig) running across its Eagle
Ford areas with 216 gross producing wells and 13 gross wells in
various stages of completion. In addition, one gross rig is currently
running in the TMS in which Sanchez Energy has a non-operated
interest.
Gross
Gross Gross Net Wells Waiting /
Project Producing Rigs Rigs Undergoing
Area Wells Running Running Completion
Marquis 48 3 3 8
Palmetto 57 1 1 3
Cotulla 93 1 1 -
Wycross 16 1 1 2
TMS / Other 2 1 - -
Total 216 7 6 13
About Sanchez Energy Corporation
Sanchez Energy Corporation is an independent exploration and
production company focused on the acquisition and development of
unconventional resources in the onshore U.S. Gulf Coast, with a
current focus on the Eagle Ford Shale where we have assembled
approximately 120,000 net acres. The Company also has approximately
40,000 net acres targeting the Tuscaloosa Marine Shale. Sanchez Energy
plans to hold its first quarter 2014 earnings conference call on
Thursday, May 8, 2014 at 2:00 p.m. EDT (1:00 p.m. CDT). For more
information about Sanchez Energy Corporation, please visit our
website: www.sanchezenergycorp.com
Forward Looking Statements
This press release contains, and our officers and representatives may
from time to time make, 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, including statements relating to
successfully closing our announced acquisitions, the anticipated
benefits of our acquisitions, successfully obtaining the financing for
any proposed acquisitions and other aspects of any proposed
acquisitions. 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 failure of acquired assets to produce as anticipated,
failure to successfully integrate acquired assets, failure to
continue to produce 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 and other factors described in Sanchez Energy's Annual Report
for the fiscal year ended December 31, 2013 and any updates to those
risk factors set forth in Sanchez Energy's Quarterly Reports on Form
10-Q. Further information on such assumptions, risks and
uncertainties is available in Sanchez Energy's filings with the
Securities and Exchange Commission ("SEC"). 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. In light of these risks,
uncertainties and assumptions, the events anticipated by Sanchez
Energy's forward-looking statements may not occur, and, if any of such
events do occur, Sanchez Energy may not have correctly anticipated the
timing of their occurrence or the extent of their impact on its actual
results. Accordingly, you should not place any undue reliance on any
of Sanchez Energy's forward-looking statements. 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 may use certain terms in our press
releases, such as net 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 Executive Vice President and Chief Financial Officer
Sanchez Energy Corporation (713) 783-8000
Gleeson Van Riet SVP, Capital Markets & IR Sanchez Energy Corporation
(713) 783-8000
SOURCE Sanchez Energy Corporation
-0- 04/28/2014
/Web Site: http://www.sanchezenergycorp.com
(NYSE:SN) /
CO: Sanchez Energy Corporation
ST: Texas
IN: OIL UTI
PRN
-- LA13857 --
0000 04/28/2014 13:00:00 EDT http://www.prnewswire.com
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