Sanchez Energy Corporation reports the closing of the previously announced Wycross acquisition with an effective date of July 1, 2013. Including the $11.0 million deposit previously paid, total consideration for the acquisition was approximately $230.1 million, which includes the $220.0 million purchase price and approximately $10.1 million in normal and customary closing adjustments. The final purchase price is subject to further customary post-closing adjustments. The transaction was funded from the net proceeds of the Company's recently completed sale of approximately 11.0 million shares of common stock and $200 million of 7.75% senior notes due 2021.
Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "The Wycross acquisition is expected to add another high return, oil weighted asset to our Eagle Ford operations with approximately 11 MMBOE of proved reserves and 2,000 BOE/D of current production. To date, wells on this asset were drilled on 80+ acre spacing from single well pads. Once we take over operations, we plan to develop this area on 40 acre spacing and move to pad drilling to further reduce costs and to provide additional upside potential."