Sanchez Energy Corp.’s second quarter 2016 production was approximately 5.1 million barrels of oil equivalent (MMboe) for average production of approximately 55,900 barrels of oil equivalent per day (boe/d), according to the company’s operation update released July 19. The results exceeded the high end of Sanchez Energy's guidance for the quarter, the company said.
Sanchez said further delineation of the south central region of Catarina resulted in the company's best well to date as four new wells on the E33 Pad show average 30-day initial production rates that range from 1,600 boe/d to 1,900 boe/d.
Meanwhile, development wells in South Central Catarina, including the new delineation wells in the northern portion of region, show preliminary type curves that are 20% to 30% better than expected.
The company also updated its dealmaking activities for the quarter saying interest in Carnero Gathering, LLC, a joint venture that is half-owned by Targa Resources Corp., was sold in early July 2016 to Sanchez Production Partners LP for approximately $44 million of consideration.
As for costs, average cost per well was $3.3 million during the second quarter 2016, with the results of some wells coming in below $3 million during the quarter.
"We continue to build on our strong operating performance in 2016," said Tony Sanchez, III, CEO of Sanchez Energy. "With these results, we believe we have achieved a 'best in class' cost structure for this focus area. At the same time, well performance continues to improve as we test improved completion designs. With the combination of lower costs and strong production, we continue to see attractive returns on the company's capital program."
BP and partners have sanctioned the Azeri Central East (ACE) project, the next stage of development of the giant Azeri-Chirag-Deepwater Gunashli (ACG) oilfield complex in the Azerbaijan sector of the Caspian Sea.
Exxon Mobil Corp. and offshore Guyana partners continue their success with their 13th discovery on the Stabroek Block and fifth discovery in the Turbot area.
The rig count fell for the past four months and production growth in the Permian Basin and other key shale basins have slowed as oil prices fell and many independent shale companies cut spending.