Sanchez Energy Corp
Sanchez Energy Corp. finalized a previously announced acquisition of the Eagle Ford's Wycross
Sanchez Energy Corp. (NYSE: SN) has locked up a previously announced acquisition of the Eagle Ford's Wycross for $230.1 million.
The deal adds 11 million barrels of oil equivalent (MMBOE) of proved reserves and 2,000 BOE/d of current production on about 3,600 net acres.
The transaction has an effective date of July 1. The final purchase price includes an $11 million deposit, a $220 million purchase price and $10.1 million in 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 11 million shares of common stock and $200 million of 7.75% senior notes due 2021.
"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," Tony Sanchez III, Sanchez Energy president and CEO, said in the release.
Sanchez Energy Corp. is a Houston independent energy company focused on the acquisition, exploration, and development of unconventional oil and natural gas resources.