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 release.
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 production.
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.