Sanchez Energy Corporation (NYSE:SN) (“Sanchez Energy” or the “Company”), today announced the closing of the previously announced acquisition of working interests in approximately 318,000 gross operated acres in the Western Eagle Ford from Anadarko Petroleum Corporation (NYSE:APC) (“Anadarko”) through a 50/50 partnership involving wholly-owned subsidiaries of the Company and with Blackstone Energy Partners (“Blackstone”) (the “Comanche Transaction”). After purchase price adjustments associated with net cash flows from July 1, 2016 (the effective date of the transaction), which totaled approximately $200 million, the 50/50 partnership paid approximately $2.1 billion ($1.05 billion net to Sanchez Energy) to close the transaction, which includes proved reserves of approximately 300 million barrels of oil equivalent (“MMBoe”) (approximately 150 MMBoe net to Sanchez Energy).
Commenting on the Comanche Transaction, Tony Sanchez, III, Chief Executive Officer of Sanchez Energy said, “With the closing of the Comanche Transaction, the Company’s operated Eagle Ford position is now approximately 585,000 gross acres (335,000 net to Sanchez Energy). The contiguous nature of the acquired acreage relative to our Catarina asset creates an opportunity for significant operational and cost synergies. Our initial focus for the asset will be on completing the 132 gross drilled but uncompleted (“DUC”) wells on the acreage, which we believe will allow for immediate and rapid production growth over the next 12 months. The closing of this transaction increases our total net proved reserves to approximately 340 MMBoe, which represents an increase of approximately 78 percent from our year-end 2016 reserves. With the current development plan, we expect full year 2018 net production to be in excess of 100,000 Boe per day, double our average production rate for 2016. Importantly, we view this transaction as a key step toward deleveraging the Company’s balance sheet and anticipate that this strong production growth and reduced leverage will enable us to deliver significant value to our shareholders in the coming years.”