Sanchez Oil & Gas Corp.

Transaction Type
Sellers
Marketers
Basin
South Texas
Field
Karnes Trough, Maverick
Post Date
Close Date
Room Opening Date
Estimated Price
MM
Description

Sanchez Oil & Gas Corp., Houston, has retained BMO Capital Markets to evaluate strategies to unlock the value of its Eagle Ford trend position including a joint venture or sale.

The package includes 44,883 net acres (73,400 gross) in the oil window of the Eagle Ford trend concentrated in two primary areas: Karnes Trough in Gonzales County and Maverick in Zavala County. Approximately 58% of the net acreage is in Zavala County, followed by Frio (19%) and Gonzales (17%) with the majority not expiring until mid-2013. The average net revenue interest is 74%.

Some 90% of the interests in Zavala County are operated, while the Gonzalez County interests are nonoperated with 50% of the 14,545 gross acres in a joint venture. Other trends include the Pearsall shale, Austin chalk and Georgetown.

Estimated net proved reserves are 118 million barrels of oil equivalent (81% oil).

Other parties may participate in a joint-sales process and increase the offered leasehold in the Maverick Area by up to 6,500 net acres. Sanchez does not intend to keep operatorship if a joint venture is pursued.

The data room opens June 21. The bid due date is July 26. Closing is expected by Sept. 24. Contact Miles Redfield, 713-546-9715, miles.redfield@bmo.com.