Sanchez Energy Corporation (SN), a fast growing independent oil and gas company with a 95,000 net acre position in the liquids-rich Eagle Ford formation in South Texas, provided an interim operations update highlighting its most recent well completions in southern Fayette County, Texas, located within its Marquis project area, where the Company has approximately 51,000 net acres in its core Fayette and Lavaca County area.
The Prost #1H (100% W.I.) was drilled to a total measured depth of 16,216 feet (with a 5,537 foot lateral) and was completed with a 14-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,120 barrels of oil equivalent per day (BOE/d) on a 22/64-inch choke.The Prost #2H (100% W.I.) was drilled to a total measured depth of 17,168 feet (with a 5,500 foot lateral) and was completed with a 17-stage fracture stimulation. Over a 24-hour period, the well flowed at a rate of 1,369 BOE/d on a 22/64-inch choke. Production from both wells consists of approximately 90% 43-degree API gravity crude oil and 10% 1,400 BTU natural gas.
With approximately 51,000 net acres in its core Fayette and Lavaca County area in the Marquis area, the Company estimates it has between 420 and 630 future drilling locations in the project area, assuming an acreage spacing range of 120 to 80 acres. The Company believes that these future drilling locations in the Marquis area represent net resource potential of 140 million - 210 million barrels of oil equivalent from the Eagle Ford. The area is also prospective for the Austin Chalk, Pearsall Shale, and Buda Limestone. Currently drilling in the Marquis area is the Sante #1H. After completing this well the rig is anticipated to move back to the Prost area, where the Company estimates it has up to 32 additional development locations. In the Prost area, the Company is planning on constructing central production and gas gathering lines to facilitate an expanded development program.
The Company believes the strong performance of these most recent wells in the Marquis area, coupled with the previously announced Mark & Sandra #2H in the Company's Maverick area, which had an initial 24-hour production rate of 931 BOE/d, demonstrate the progress made in substantially de-risking the majority of the Company's acreage position in the Eagle Ford Shale trend. In its Maverick area, the Company has approximately 28,500 net acres, and estimates that it has between 235 and 350 future drilling locations with an estimated 60 million to 90 million barrels of oil equivalent of net resource potential.
Across its entire 95,000 net acre position in the liquids rich Eagle Ford trend, the Company estimates it has between 800 and 1,200 future drilling locations targeting Eagle Ford estimated net resource potential of between 245 million and 365 million barrels of oil equivalent.
Tony Sanchez III, Chairman and CEO, stated, "Continuing on a series of strong and improving well results from our operations, we are proud to announce that our first two wells in the Marquis area flowed at initial production rates of 1,120 BOE/d and 1,369 BOE/d. We believe that the impact of our latest Marquis wells is significant, as we have approximately 51,000 net acres with 100% working interest and thus a substantial amount of running room in this area. Based upon the performance from these wells, where the Prost #1H was completed with 14 frack stages and the Prost #2H was completed with 17 frack stages, we anticipate that subsequent wells will be completed with longer laterals and more stages, resulting in higher flow rates and EURs as we optimize our drilling and completion practices. That trend, combined with recent developments of down-spacing across the Eagle Ford play, reinforces the growth we expect to be delivered as we continue to execute our drilling program."
Sanchez Energy Corporation is a Houston, Texas based growth oriented independent exploration and production company currently focused on the prolific Eagle Ford Shale trend of South Texas. The Company has 95,000 net acres in the volatile oil, black oil, and gas condensate windows of the Eagle Ford.