Company has acreage in Cascade and Lewis & Clark Counties…
Sanchez Energy Corporation, an independent oil and gas company targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone, on Tuesday announced its 2013 capital budget and guidance for 2013.
Sanchez Energy, according to information provided by the company, holds 82,000 net acres in leases across Lewis and Clark County and Cascade County in Montana.
Tony Sanchez III , President and Chief Executive Officer said, “We are excited about accelerating the development of our Marquis area, which is proving to be highly productive and a significant source of value for the Company where well performance is steadily improving and cost efficiencies are being realized. The Prost B#1H averaged 808 BOE/d for the first 60 days, a significant improvement over the Prost #1H and #2H, as we have refined our completion techniques and as a result are witnessing substantially improved oil flow rates and reservoir pressure maintenance. As shown in the table below, we are allocating a larger percentage of our total capital budget to our Marquis area than we did last year. Over 90% of our capital budget is targeted toward drilling and completing wells and over 90% of that amount is focused on the Palmetto and Marquis areas.”
Mr. Sanchez continued that “as we execute our 2013 drilling plan, we expect reserves, production, and cash flow to steadily increase as we continue to expand our development program while focusing on drilling and completion efficiencies. Our 2013 year-end exit rate production guidance of 8,500 to 9,500 BOE/d is approximately double the 4,500 BOE/d exit rate that we achieved in 2012. Our expectations are to fully fund this growth through a combination of cash on hand, operating cash flow, and borrowings under our credit facilities. As the Company’s reserves and base level of cash flow increase, we expect there to be a commensurate increase in our borrowing capacity.”