US-based exploration and production company Sanchez Energy has signed an agreement to sell its Javelina asset in the Eagle Ford shale to an undisclosed buyer for about $105m in cash.

The Javelina acreage encompasses proven Eagle Ford down-dip areas and comprises around 70,000 net acres in LaSalle and Webb Counties, Texas.

According to the company, the acreage contains an average estimated ultimate recovery (EUR) per well, ranging between 1,500 million barrels of oil equivalent (mmboe) and 2,500mmboe.

Sanchez Energy CEO Tony Sanchez III said: “This transaction highlights the value creation that our grass roots leasing programme has delivered.

"This transaction highlights the value creation that our grass roots leasing programme has delivered."

“Over the last eighteen months we leased approximately 70,000, largely contiguous, net acres in the dry gas window of the Eagle Ford. This transaction accelerates the value of the asset, while building our liquidity and providing value to our shareholders.”

The company identified more than 450 gross locations for potential drilling in the Javelina area.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Prior to the transaction, Sanchez owned around 335,000 net leasehold acres in the Eagle Ford Shale, with 3,300 projected future drillable gross locations.

Other lease holdings in the shale play include the Catarina area, where the company has around 106,000 net acres in the Dimmit, LaSalle and Webb counties; Texas, with an estimated EUR per well of 400mmboe and 1,200mmboe; and around 77,500 net acres in the Comanche area.

In addition, the company owns acreage in the Palmetto, Marquis and Maverick areas.