March 18 Sanchez Energy Corp said on
Monday it has signed a $265 million deal for producing oil
assets and reserves in the Eagle Ford formation in South Texas
from Hess Corp, which is shedding properties as
investors press for change.
The all-cash deal consists of about 13.4 million barrels oil
equivalent (BOE) of proved reserves and 4,500 BOE per day of
current production on 43,000 acres, Sanchez said in a news
Sanchez said it will issue up to $250 million in convertible
preferred shares to fund the acquisition, which will boost its
current daily production by 115 percent.
Earlier this month, Hess said it will sell its energy
trading arm and exit its retail gasoline and marketing
businesses by 2015 to focus on oil and gas exploration and
Hedge fund Elliott Management had asked Hess in January to
consider the spinoff of its U.S. onshore assets and the sale of
its retail operations.