Sanchez Energy Announces Fourth Quarter Production of 1,731 MBOE, an Increase of 60% Over the Third Quarter of 2013, and 2013

Sanchez Energy Announces Fourth Quarter Production of 1,731 MBOE, an Increase
 of 60% Over the Third Quarter of 2013, and 2013 Year-End Proved Reserves of
          58.9 MMBOE, an Increase of 178% Compared to Year-End 2012

PR Newswire

HOUSTON, Jan. 27, 2014

HOUSTON, Jan. 27, 2014 /PRNewswire/ --Sanchez Energy Corporation (NYSE: SN)
("Sanchez Energy" or the "Company"), a rapidly growing independent oil and gas
company targeting onshore U.S. Gulf Coast oil resource plays with a current
focus on the Eagle Ford Shale and the Tuscaloosa Marine Shale, today provided
an update on its fourth quarter 2013 operations and year-end 2013 reserves.

Summary Highlights

  oSanchez Energy reported fourth quarter 2013 production of approximately
    1,731 MBOE (18,810 BOE/D), an increase of 60% over the third quarter of
    2013 and an increase of 905% compared to the same period a year ago.
    Fourth quarter 2013 reported production included approximately 70 MBOE
    (750 BOE/D) of positive prior period adjustments, largely in natural gas
    liquids (NGLs) and natural gas volumes. Daily average production,
    excluding 750 BOE/D associated with the positive prior period adjustments,
    was 18,060 BOE/D, exceeding the previously set forth guidance range of
    15,000 to 17,000 BOE/D.
  oReported production volumes consisted of 73% oil (75% before the prior
    period adjustments), 13% NGLs, and 14% natural gas.
  o2013 year-end proved reserves increased to 58.9 MMBOE, an increase of 178%
    compared to year-end 2012.
  oCurrent production of approximately 19,000 BOE/D with 15 gross wells in
    various stages of drilling and completion.

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy,
commented: "2013 was a transformative year for the Company. Our production
and reserves grew tremendously as a result of successfully executing our 2013
capital plan and completing several acquisitions. We also entered into the
Tuscaloosa Marine Shale, providing significant upside potential without
reallocating substantial resources from the Eagle Ford Shale. Our focus in
2014 will be to continue to execute on our Eagle Ford development program,
increasing efficiency and further reducing costs.

Our operated assets of Cotulla and Marquis have transitioned into development
mode and are benefiting from the cost and timing efficiencies of pad drilling
and zipper fracs. During the fourth quarter, we brought online approximately
32 net wells, including 8 net wells acquired from our Wycross acquisition,
which drove the strong production for the quarter. A higher percentage of
drilling capital this year is allocated to the areas where we operate allowing
greater control over timing and costs in 2014. As a result of successful 40
acre pilot programs in our Palmetto, Cotulla, and Wycross areas, we have
expanded our inventory of high quality drilling locations. While we continue
to evaluate performance of 40 acre spacing for reserves impact, the results to
date are highly encouraging, and we have modified development plans in these
areas to maximize efficiency on 40 acres spacing. Our Marquis area remains a
high growth area. In the fourth quarter, we derisked our locations on Prost D,
E, and F units and recently we drilled some of our most productive wells to
date in the area to the south in the Prost G and H units. Beyond the Prost
area, we have wells in various stages of drilling and completions in the Five
Mile Creek and Sante areas of Marquis, these areas have potential to provide
significant growth to our number of locations in 2014."

Estimated Fourth Quarter and Full Year 2013 Production Volumes and 2013
Year-End Reserves

Estimated total production for the fourth quarter of 2013 was approximately
1,731 MBOE (18,810 BOE/D). Prior period adjustments increased total production
for the fourth quarter by approximately 70 MBOE (750 BOE/D). Crude oil
represented 73% of the total production stream (75% before the prior period
adjustments), NGLs represented 13% (11% before the prior period adjustments),
and natural gas represented 14% (14 % before the prior period adjustments).
Estimated total production for the full year 2013 was 3,872 MBOE (10,607
BOE/D).

                      Three Months Ended December 31,  Year Ended December 31,
                      2013        2012      % Change   2013    2012   % Change
Total Production
Volumes
Oil (MBbls)      1,265       164       669%       2,909   418    596%
Natural Gas      1,454       46        3,047%     3,049   301    912%
(MMcf)
NGLs (MBbls)     224         0         NM         455     1      NM
Total Production      1,731       172       905%       3,872   469    726%
Volumes (MBOE)
Average Daily
Production Volumes
Oil (Bbls/d)     13,746      1,787     669%       7,969   1,142  598%
Natural Gas      15,804      502       3,047%     8,352   823    915%
(Mcf/d)
NGLs (Bbls/d)    2,430       3         NM         1,247   2      NM
Total Production      18,810      1,874     905%       10,607  1,281  728%
Volumes (BOE/D)

Sanchez Energy announced that proved reserves increased to 58.9 MMBOE at
December 31, 2013, up 178% from 21.2 MMBOE at December 31, 2012. Crude oil
constituted 77% (88% crude oil and NGLs) of Sanchez Energy's proved reserves
at December 31, 2013, and 58% of the Company's proved reserves were classified
as proved undeveloped at December 31, 2013 as compared to 82% at December 31,
2012.

Note: The Company's estimated reserves were prepared by its independent
reservoir engineering firm Ryder Scott & Company, L.P.

2014 Operating Capital Plan and Operations Update

Sanchez Energy's 2014 capital plan calls for spending approximately $650
million to $700 million to spud and complete 70 net wells and fund production
facilities and related expenditures, additional acreage acquisitions, and
seismic expenditures. Approximately 95% of the capital plan will be allocated
towards drilling and completing wells, of which approximately 90% will be
directed to the development of our Eagle Ford Share properties as outlined
below:

                      2014 Operating Capital Plan ($MM)
                      Gross                                 % of       % of
                      Full   Net    Net Wells               Operating  D&C
                      Year   Wells
Project Area          Rig    Spud   Completed  Capex        Capital    Capital
                      Count
Marquis              3.0    35     32         $300 - $315  46%        48%
Palmetto             0.7    5      8          50   - 60    8%         9%
Cotulla              0.5    9      9          60   - 70    10%        10%
Wycross              1.5    19     19         145  - 155   22%        23%
TMS                  1.3    2      2          60   - 65    9%         10%
Total D&C Capital     7.0    70     70         $615 - $665  95%        100%
Plan
Facilities,                                   35           5%
Leasing, and G&G
Total Operating                                $650 - $700  100%
Capital Plan

As detailed in the table below, Sanchez Energy currently has 6 rigs (4
operated and 2 non-operated rigs) running across its Eagle Ford areas and 1
non-operated rig running in the Tuscaloosa Marine Shale with 15 gross wells in
various stages of completion.

                                          Gross
             Gross      Gross    Net      Wells Waiting /
Project      Producing  Rigs     Rigs     Undergoing
Area         Wells      Running  Running  Completion
Marquis      34         4        3        8
Palmetto     53         1        1        3
Cotulla      85         1        1        4
Wycross      15         -        -        -
TMS / Other  1          1        -        -
Total        188        7        5        15

First Quarter 2014 Operating and Financial Guidance

Sanchez Energy reiterates its full year 2014 average production guidance range
of 21,000 to 23,000 BOE/D and issues its operating and financial guidance for
the first quarter of 2014:

Metrics                                        Range
Production Guidance (BOE/D)
 First Quarter 2014 Average                  18,000 – 20,000
First Quarter 2014 Financial Guidance ($/BOE)
 Oil and Natural Gas Production Expenses     $8.50  – $10.50
 Production and Ad Valorem Taxes             $5.00  – $6.00
 Cash G&A                                    $5.00  – $6.00

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 120,000 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.com and 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
Executive Vice President and Chief Financial Officer
Sanchez Energy Corporation
(713) 783-8000

Gleeson Van Riet
SVP, Capital Markets & IR
Sanchez Energy Corporation
(713) 783-8000

SOURCE Sanchez Energy Corporation

Website: http://www.sanchezenergycorp.com
 
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