Thursday, March 21, 2013

Sanchez Energy Buys Great Assets From Hess On The Cheap

Shares of Sanchez Energy (SN) ended Monday's trading session unchanged after trading with gains of up to 3%. The independent oil and natural gas exploration and production company announced the acquisition of "Eagle Ford" assets from Hess Corporation (HES). Investors lost some of their enthusiasm about the deal as shares fell back towards $19 on Tuesday and Wednesday.

The Deal

Sanchez Energy announced that it has agreed to acquire 43,000 net acres of operating assets in the Eagle Ford shale field in Texas. The company will pay $265 million for the assets which have 13.4 million barrels of oil equivalent in proven reserves, of which 70% is oil. Currently the fields produce 4,500 barrels of oil equivalent per day. The acquired properties have 50 gross operating producing wells and 72% of the production is oil.

Read the entire article on Seekingalpha by clicking the following link

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