Independent oil and gas company Sanchez Energy Corp. (SN) Monday said it has executed a definitive agreement to purchase assets in the Eagle Ford trend of south Texas from Hess Corp. (HES) for about $265 million in cash. The effective date of the deal is March 1.
Sanchez, which targets the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone, said the assets being bought consist of 13.4million barrels of oil equivalent or MMBOE of proved reserves, 4,500 BOE per day of current production and 43,000 acres in Dimmit, Frio, LaSalle, and Zavala Counties, Texas.
According to the company, the transaction grows production significantly at a cost of around $59,000 per flowing BOE/D and adds proved reserves at a cost of about $19.70 per BOE.
The deal increases the company's producing well count by 50 to 84 gross producing wells and enhances Eagle Ford net acres by 43,000 to 138,000 net acres.
Sanchez has secured commitments for $325 million in debt financing. The firm expects to access the capital markets in the near term. Closing of the acquisition and availability of the debt financing are expected to occur concurrently in the second quarter.
SN closed up 0.3 percent on Monday at $19.45 and advanced 1.2 percent in the extended trade.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.