HOUSTON, Aug. 28, 2012 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil and gas company with a 95,000 net acre position in the liquids-rich Eagle Ford formation in South Texas, today provided an interim operations update highlighting its most recent well completions in southern Fayette County, Texas, located within its Marquis project area, where the Company has approximately 51,000 net acres in its core Fayette and Lavaca County area.
The Prost #1H (100% W.I.) was drilled to a total measured depth of 16,216 feet (with a 5,537 foot lateral) and was completed with a 14-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,120 barrels of oil equivalent per day (BOE/d) on a 22/64-inch choke. The Prost #2H (100% W.I.) was drilled to a total measured depth of 17,168 feet (with a 5,500 foot lateral) and was completed with a 17-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,369 BOE/d on a 22/64-inch choke. Production from both wells consists of approximately 90% 43-degree API gravity crude oil and 10% 1,400 BTU natural gas.
With approximately 51,000 net acres in its core Fayette and Lavaca County area in the Marquis area, the Company estimates it has between 420 and 630 future drilling locations in the project area, assuming an acreage spacing range of 120 to 80 acres. The Company believes that these future drilling locations in the Marquis area represent net resource potential of 140 million - 210 million barrels of oil equivalent from the Eagle Ford. The area is also prospective for the Austin Chalk, Pearsall Shale, and Buda Limestone. Currently drilling in the Marquis area is the Sante #1H. After completing this well the rig is anticipated to move back to the Prost area, where the Company estimates it has up to 32 additional development locations. In the Prost area, the Company is planning on constructing central production and gas gathering lines to facilitate an expanded development program.
The Company believes the strong performance of these most recent wells in the Marquis area, coupled with the previously announced Mark & Sandra #2H in the Company's Maverick area, which had an initial 24-hour production rate of 931 BOE/d, demonstrate the progress made in substantially de-risking the majority of the Company's acreage position in the Eagle Ford Shale trend. In its Maverick area, the Company has approximately 28,500 net acres, and estimates that it has between 235 and 350 future drilling locations with an estimated 60 million to 90 million barrels of oil equivalent of net resource potential.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV