Sanchez Energy Corporation declared its capital budget and operating plans for 2012 as well as an initiation of guidance for selected 2012 operating and financial metrics.

2012 Capital Spending and Operating Plans

Sanchez Energy's 2012 capital budget calls for total spending of approximately $136 to $154 million. The 2012 plan calls for the drilling of 23 gross (16.5 net) wells, investing in central production facilities and related expenditures, leasing additional acreage in its core areas and the shooting of 3-D seismic in support of the company's drilling programs in the volatile and black oil windows of the Eagle Ford Shale trend of south Texas. The majority of the year's capital plan will be focused on drilling and completing wells, at $126 to $144 million, and is expected to be allocated by area as follows:

Palmetto area - 13 gross (6.5 net) wells at a capital cost of $52 to $58 million, with the first well expected to spud in late March

Marquis area - 6 gross/net wells at a capital cost of $52 to $58 million, with the first well expected to spud in early March

Maverick area - 4 gross/net wells at a capital cost of $22 to $28 million, with the first well expected to spud in late February

The company expects to spend approximately $10 million on central production facilities and related infrastructure, leasing and seismic in support of its drilling program during 2012.

2012 Operating and Financial Guidance

Sanchez exited 2011 producing an average 1,350 barrels of oil equivalent per day (BOEPD). In the following table, Sanchez provides its operating and financial guidance for 2012.

Tony Sanchez, III, Chairman and Chief Executive Officer of Sanchez Energy, said: "Sanchez Energy's capital spending program for 2012 is heavily weighted toward the drilling of wells and should move us steadily toward our goal of converting our extensive undeveloped acreage position into proven reserves, growing our production base and generating cash flow. We expect to be able to fund this capital program with the proceeds from our recent initial public offering, our increasing cash flow and a modest amount of debt. The impact of our drilling activities, which will commence during the first and second quarters of 2012, should be evident in our reported production volumes throughout the second half of the year with an expected 2012 production exit rate in excess of 4,000 barrels of oil equivalent per day."

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