facebook
twitter
rss
account
search
search
 

Sanchez Energy expands Eagle Ford shale footprint

Company heralds buy as strategic move on significant reserves.
By Daniel J. Graeber   |   July 1, 2014 at 8:21 AM   |   Comments

http://cdnph.upi.com/sv/em/upi/UPI-1741404215994/2014/1/a4203e78079a7b2c36f366e5f6e0ab5a/Sanchez-Energy-expands-Eagle-Ford-shale-footprint.jpg
HOUSTON, July 1 (UPI) -- Sanchez Energy Corp., a U.S. company focused on shale in the Gulf Coast region, said it made a strategic move by buying acreage in the Eagle Ford shale.

Sanchez Energy Corp. said it closed on a deal with a subsidiary of Royal Dutch Shell to buy acreage in the Eagle Ford shale in the southern United States.

"This strategic acquisition adds significant reserves, production and future resource potential in an area of the Eagle Ford Shale," Tony Sanchez III, the company's president and chief executive officer, said in a Monday statement.

In January, the company, which has headquarters in Houston, said its primary focus for the year would be in the Eagle Ford shale.

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.

In May, the company announced plans to pay $639 million for Shell's 106,000 acres in the shale play, doubling its holdings. About 60 percent of the 24,000 barrels of oil equivalent produced from the acreage in the first quarter of the year was oil.

Follow @dan_graeber and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
New Navy sub ready for outfitting, testing New Navy sub ready for outfitting, testing
2
New F-35 sustainment system undergoing flight testing New F-35 sustainment system undergoing flight testing
3
Apple to authorities: No iPhone user data, even with a warrant Apple to authorities: No iPhone user data, even with a warrant
4
Scrap South Stream, Europe says Scrap South Stream, Europe says
5
Home Depot says 56M credit, debit cards compromised Home Depot says 56M credit, debit cards compromised
Trending News
Video
x
Feedback