/C O R R E C T I O N -- Sanchez Energy Corporation/ PR Newswire HOUSTON, Oct. 24, 2013 In the news release, Sanchez Energy Announces Second Quarter Production of 1,083 MBOE, an Increase of 54% Over the Second Quarter of 2013 and an Increase of 710% Over the Third Quarter of 2012, issued 24-Oct-2013 by Sanchez Energy Corporation over PR Newswire, we are advised by the company that the headline should read "Sanchez Energy Announces Third Quarter Production..." rather than "Second Quarter Production" as originally issued inadvertently. The complete, corrected release follows: Sanchez Energy Announces Third Quarter Production of 1,083 MBOE, an Increase of 54% Over the Second Quarter of 2013 and an Increase of 710% Over the Third Quarter of 2012 HOUSTON, Oct. 24, 2013 /PRNewswire/ --Sanchez Energy Corporation (NYSE: SN) ("Sanchez Energy" or the "Company"), a rapidly growing independent oil and gas company targeting the onshore U.S. Gulf Coast oil resource plays with a current focus on the Eagle Ford Shale, today provided an update on its Third Quarter 2013 Operations. Summary Highlights oSanchez Energy reports third quarter 2013 production of approximately 1,083 MBOE (11,774 BOE/D), an increase of 54% over the second quarter of 2013 and an increase of 710% over the same period a year ago oProduction volumes consisted of 76% oil, 10% natural gas liquids (NGL), and 14% natural gas oThe Company currently has 25 gross wells in various stages of drilling and completion oCurrent production of approximately 15,500 BOE/D, excluding approximately 1,500 BOE/D of production that is currently shut-in for offset fracture stimulation operations oThe Company provides 2014 exit rate production guidance range of 22,000 to 26,000 BOE/D and guides to a calendar year 2014 increase in total production of more than 100% over expected 2013 total production oClosed the Wycross acquisition on October 4, 2013, which added approximately 2,000 BOE/D of production and 11 MMBOE of proved reserves oBroadened our onshore Gulf Coast resource position by acquiring approximately 40,000 net acres in the Tuscaloosa Marine Shale play and increased our Marquis holdings with the Five Mile Creek acquisition Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "We continue to achieve significant production growth as we are now in full development mode in each of our Eagle Ford project areas, utilizing pad drilling to drive cost and time efficiencies throughout our operations. Our third quarter 2013 average daily production of approximately 11,800 BOE/D was above the midpoint of our guidance range of 11,000 to 12,000 BOE/D. With six rigs drilling (5 net), 19 wells in various stages of completion, and the addition of our recently closed Wycross acquisition, we expect our production to continue growing at a rapid pace, and we reiterate our fourth quarter 2013 average daily production guidance range of 15,000 to 17,000 BOE/D. Furthermore, we continue to anticipate exiting 2014 with production in the range of 22,000 to 26,000 BOE/D and anticipate full year 2014 production to more than double expected full year 2013 production. During the third quarter, the Company entered into an emerging oil resource play by acquiring approximately 40,000 undeveloped net acres in the core of the Tuscaloosa Marine Shale trend. With a significant portion of the acquired acreage held by production and plenty of term on the remaining acreage, we plan to participate in several non-operated wells in the area before commencing our operated TMS drilling program in 2014. As well costs are trending down and well performance continues to improve, we see significant upside potential from this strategic diversification while maintaining our focus on our Eagle Ford operations. We also closed on the Five Mile Creek acquisition in our Marquis area, adding approximately 10,300 net acres northwest of our Prost development. This acquisition adds not only a contiguous block of acreage with multiple years of drilling inventory but also numerous developmental synergies with the Prost area. Additionally, we closed the acquisition of our Wycross property in McMullen County, Texas, immediately after the end of the third quarter and are proceeding rapidly to implement a continuous development drilling program at the end of this year. Results from our down-spacing pilots continue to compare favorably with wider spaced historical wells, giving us growing comfort that our inventory of high quality drilling locations continues to expand. We expect the initial results of this down-spacing activity to materialize in our reserve bookings for our year-end 2013 reserve report. In addition to our ongoing development drilling, we also expect to spud several step-out wells this quarter in our Marquis area including: Five Mile Creek, the southern end of our Prost area, and our Sante North location." Estimated Third Quarter Production Volumes and Operational Update Estimated total production for the third quarter of 2013 was approximately 1,083 MBOE. Crude oil represented 76% of the total production stream, natural gas liquids represented 10%, and natural gas represented 14%. The estimated 1,083 MBOE of total production compares to 134 MBOE in the third quarter of 2012, an increase of 710%, and an increase of 54% over the second quarter of 2013 total production of 703 MBOE. As detailed in the table below, Sanchez Energy currently has six rigs (four operated and two non-operated rigs) running across its Eagle Ford areas with 19 gross wells in various stages of completion. Gross Gross Wells Waiting / Project Producing Rigs Undergoing Area Wells Running Completion Palmetto 42 2 8 Marquis 22 3 8 Cotulla - Maverick 80 1 2 Wycross 13 - 1 Other 1 - - Total 158 6 19 Preliminary 2014 Capital and Operating Plan Our preliminary operating capital program for 2014 calls for spudding 75 to 80 net wells using an annual average rig count of approximately 5 net rigs. The capital associated with that preliminary program, including facilities, leasing, and geologic and geophysical activities, is currently estimated to be approximately $700 million. An estimated 95% of the capital program is directed to the drilling and completing of the new wells, which we expect will result in full year 2014 production increasing more than 100% over expected full year 2013 production. About Sanchez Energy Corporation Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional oil resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale where the Company has assembled approximately 125,000 net acres. The Company also has approximately 40,000 net acres targeting the Tuscaloosa Marine Shale. For more information about Sanchez Energy Corporation, please visit our website: www.sanchezenergycorp.com Forward Looking Statements This press release contains, and our officers and representatives may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Sanchez Energy expects, believes or anticipates will or may occur in the future are forward-looking statements, including statements relating to successfully closing our announced acquisitions, the anticipated benefits of our acquisitions, successfully obtaining the financing for any proposed acquisitions and other aspects of any proposed acquisitions. These statements are based on certain assumptions made by the company based on management's experience, perception of historical trends and technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and reasonable by management. When used in this press release, the words "will," "potential," "believe," "estimate," "intend," "expect," "may," "should," "anticipate," "could," "plan," "predict," "project," "profile," "model," or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Sanchez Energy, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, including, but not limited to failure of acquired assets to produce as anticipated, failure to successfully integrate acquired assets, failure to continue to produce oil and gas at historical rates, costs of operations, delays, and any other difficulties related to producing oil or gas, the price of oil or gas, marketing and sales of produced oil and gas, estimates made in evaluating reserves, competition, general economic conditions and the ability to manage and continue growth and other factors described in Sanchez Energy's Annual Report for the fiscal year ended December 31, 2012 and any updates to those risk factors set forth in Sanchez Energy's Quarterly Reports on Form 10-Q. Further information on such assumptions, risks and uncertainties is available in Sanchez Energy's filings with the Securities and Exchange Commission ("SEC"). Sanchez Energy's filings with the SEC are available on its website at www.sanchezenergycorp.com and on the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events anticipated by Sanchez Energy's forward-looking statements may not occur, and, if any of such events do occur, Sanchez Energy may not have correctly anticipated the timing of their occurrence or the extent of their impact on its actual results. Accordingly, you should not place any undue reliance on any of Sanchez Energy's forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made and Sanchez Energy undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Cautionary Note to U.S. Investors The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use certain terms in our press releases, such as net resource potential and other variations of the foregoing terms that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the reserves disclosures in our filings with the SEC available on our website at www.sanchezenergycorp.comand the SEC's website at www.sec.gov. You can also obtain this information from the SEC by calling its general information line at 1-800-SEC-0330. Company contact: Michael G. Long Senior Vice President and Chief Financial Officer Sanchez Energy Corporation (713) 783-8000 SOURCE Sanchez Energy Corporation Website: http://www.sanchezenergycorp.com
/C O R R E C T I O N -- Sanchez Energy Corporation/
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