Sanchez Energy Corporation has executed a definitive agreement to purchase assets in the Eagle Ford trend of south Texas consisting of approximately 13.4 MMBOE of proved reserves, 4,500 BOE/D of current production and approximately 43,000 net acres in Dimmit, Frio, LaSalle, and Zavala Counties, Texas from Hess Corporation for approximately $265 million in cash, subject to customary adjustments.

Transaction Highlights

•Sanchez Energy to acquire operated assets with high working interests in approximately 43,000 net acres in the Eagle Ford Shale in Dimmit, Frio, LaSalle, and Zavala Counties, Texas with an effective date of March 1, 2013 for approximately $265 million. ◦Transaction grows production significantly at a cost of approximately $59,000 per flowing BOE/D and adds proved reserves at a cost of approximately $19.70 per BOE.

•Acquisition will materially increase the Company's reserves, production, and net acres: ◦increases current production by approximately 4,500 BOE/D, or approximately 115% over the Company's 3,800 BOE/D average rate for first two months of 2013; ◦increases Company's 2012 year-end total proved reserves by approximately 13.4 MMBOE, or 63%, and increases proved developed reserves by approximately 6.6 MMBOE, or 178% to 10.3 MMBOE; ◦increases Company's producing well count by 50, or almost 150%, to 84 gross producing wells; ◦increases Eagle Ford net acres by approximately 43,000 net acres to 138,000 net acres.

Tags: Sanchez Energy Corporation