Replies to post #45 on Sanchez Energy Corp. (fka SNECQ)

[Timothy Smith]

$SN - Analysts expect Sanchez to make smart acquisitions in terms of getting assets at a really good price such as the Cotulla transaction. But their primary focus should remain on the Eagle Ford Shale.

The company recently hired Joseph DeDominic as its newly appointed chief operating officer. DeDominic has over 24 years of experience in the oil and gas industry, and most recently at Occidental Petroleum (OXY) for the past 12 years.

He built a business unit at Occidental from a nonoperating unit to an operating one, noted Mills. "He has brought a lot of these processes down to Sanchez, and it has really helped them from an operational and management standpoint.

"The Sanchez family has been actively drilling in South Texas since 1972. They've benefited, as they've built out the Eagle Ford Shale position, from strong relationships with landowners through the 40 years of drilling. And that is something that not everybody has."


Read More At Investor's Business Daily: http://news.investors.com/business-the-new-america/062113-660958-sanchez-energy-eagle-ford-shale-oil-gas.htm#ixzz2ZBdw5a44
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[Timothy Smith]

@Boomer - I don't think I saw the stats on that one. Do you have a link? The IP's are amazing. The thing most engineers are still skeptical is the decline rates. There just hasn't been enough time to establish a par value.

[Timothy Smith]

@Boomer - Found the well you were talking about. VERY NICE!

EOG (EOG) filed a report with the Texas Railroad Commission recently (link), showing a 8,650 boepd 24 hour initial production rate, of which over 7,500 bopd was oil.

To understand the scale of this well, assuming an 80% NRI and $100 oil (oil is at ~$105 right now), the well produces $600,000 per day in net revenue, vs. a total cost to drill and complete the well of ~$6 million.