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Sanchez Energy bets big on Eagle Ford shale

Jan. 16, 2014 at 8:11 AM   |   Comments

HOUSTON, Jan. 16 (UPI) -- Sanchez Energy Corp. said it expects to spend more than $600 million exploiting the Eagle Ford shale reserve area in western Texas this year.

Sanchez, which has headquarters in Houston, said its primary focus for 2014 would be in the Eagle Ford shale.

President and Chief Executive Officer Tony Sanchez III said all of the company's operations in the Eagle Ford shale were performing at or above expectations.

"The vast majority of our operations and expected results will come from our low risk Eagle Ford development activities," he said in a statement Wednesday.

The U.S. Energy Information Administration singled out Eagle Ford as one of the premier shale basins in the country. Last year, the government estimated natural gas production from Eagle Ford was near 5 billion cubic feet per day.

Sanchez said about 90 percent of its drilling costs, included in a $650 capital plan for 2014, will be allocated to developing Eagle Ford shale.

Through the expansion of its 2013 programs in the area, Sanchez said it expects to produce an average rate of 21,000 barrels of oil equivalent per day this year.

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