Sanchez Energy To Buy Assets In Eagle Ford Shale For $220 Mln Cash

(RTTNews) - Sanchez Energy Corp. (SN), an exploration and production company, Monday announced that it has executed a definitive agreement to purchase assets in the Eagle Ford Shale Trend of South Texas for about $220 million in cash.

The assets consists of about 11 MMBOE of proved reserves and 2,000 BOE/D of current production on approximately 3,600 net acres in McMullen County. The deal, with an effective date of July 1, is subject to customary adjustments.

Reflecting the pending acquisition, Sanchez Energy also announced a preliminary 2014 operating capital plan and a revised 2013 operating capital plan.

Separately, Sanchez Energy said it intends to commence an underwritten public offering of its 8 million shares. The company added that it has commenced a private offering to eligible purchasers of $150 million aggregate principal amount of 7.75% senior notes due 2021.

Sanchez Energy intends to use the net proceeds from these to partially fund its acquisition of assets In Eagle Ford Shale.

The company will also use the proceeds to fund a portion of its 2013 and preliminary 2014 capital budget, which is primarily focused on the Eagle Ford Shale, and for general corporate purposes, including working capital.

The company expects to grant the underwriters a 30-day option to purchase up to an additional 1.2 million shares of common stock.