Sanchez Energy Corporation, a fast growing independent oil and gas company with a 95,000 net acre position targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone, today provided an interim drilling and production update on the Company's activities.
Sanchez Energy's estimated current net production rate is approximately 4,400 barrels of oil equivalent ("BOE) per day, of which approximately 84% was oil. This rate represents a 159% increase over the third quarter 2012 net production exit rate of 1,700 BOE/d.
Tony Sanchez III, President and Chief Executive Officer said: "We continue to see strong well performance across our three focus areas as we execute on the remainder of this year's development plan. Additionally, we are testing tighter spacing in each of our positions in the Eagle Ford trend, and more specifically, one of the rigs in our Palmetto area is drilling the first of a 5-well, 40-acre spacing pilot on the southern part of the Barnhart ranch.
As we continue more development-type drilling in each project area, our goal is to drive organic growth in our production flow-rates and booked reserves while continuing to aggressively reduce finding and development costs through drilling and completion efficiencies. Our planned comprehensive year-end press release, which we expect in the last week of January, will provide more specific well by well operating data, update our proved reserve volumes, and provide more 2013 operational and financial guidance."
The Company is currently running two rigs in the Palmetto area, one rig in the Maverick area, and two rigs in the Marquis area.