No current plans to develop sold properties
Sanchez Energy (ticker: SN) announced the sale of a portion of its Eagle Ford assets last week in a $105 million all-cash deal.
Sanchez is divesting the Javelina portion of its acreage, totaling about 70,000 acres. Unlike most of the company’s acreage, Javelina is entirely in the dry gas portion of the Eagle Ford. Sanchez primarily focuses on its condensate acres, with additional operations in the oil-producing area of the Eagle Ford.
Sanchez’s most recent presentation reports no producing or drilled uncompleted wells in the Javelina. There are, however, a total of 340 undrilled locations available. Sanchez did not plan to spend any money to develop Javelina in its 2017 capital budget.
The company did not release details or the buyer’s identity, but did state that closing is expected in Q3 2017.
Sanchez Energy CEO Tony Sanchez commented on the sale, saying “This transaction highlights the value creation that our grass roots leasing program has delivered. Over the last eighteen months we leased approximately 70,000, largely contiguous, net acres in the dry gas window of the Eagle Ford. This transaction accelerates the value of the asset, while building our liquidity and providing value to our shareholders.”
To hear Sanchez Energy’s 2017 EnerCom presentation webcast, visit this link.
