Scandoil  

Sanchez Production acquires Eagle Ford shale assets from Sanchez Energy


Published Apr 2, 2015
Sanchez Energy Corporation-3

Sanchez Production Partners LP has executed and closed an agreement with Sanchez Energy Corp. to acquire wellbore interests in certain producing oil and natural gas wells in the Eagle Ford Shale for aggregate consideration of $85.0 million, subject to normal and customary closing adjustments.

The transaction has an effective date of January 1, 2015 and was financed by SPP with a combination of preferred equity raised in a private placement, common units, borrowings under an amended and restated credit facility, and available cash.

Key characteristics of the Eagle Ford Acquisition include: •Producing assets: 59 wellbores in the Palmetto Field in Gonzales County, Texas. •Escalating working interest: Average working interest of 18.2% in 2015 increases to 26.1% on January 1, 2016; 33.5% on January 1, 2017; 40.6% on January 1, 2018; and 47.5% on January 1, 2019 for the remaining life of the wellbores. •Production: As a result of the escalating working interest transaction structure, average production of approximately 1,000 BOE/D net to SPP's interest is expected from the wellbores over the period 2015 through 2019, with production following declines characteristic of MLP assets thereafter.

Tags: Sanchez Energy Corporation




Advertisment:

Add a Comment to this Article

Please be civil. Job and promotion will not be added into the comment page.

(Use Markdown for formatting.)

This question helps prevent spam:

+ Larger Font | + Smaller Font
Top Stories

 

 

 

 


 


RSS

RSS
Newsletter
Newsletter
Mobile News
Mobile news

Computer
Our news on
your website


Facebook
Facebook
Twitter
Twitter

Contact
Contact
Tips
Do you have any
tips to us
Stats

 

sitemap xml