Profile: Sanchez Production Partners LP (SPP)
27 Jul 2016
Sanchez Production Partners LP, formerly Sanchez Production Partners LLC, incorporated on February 7, 2005, is focused on the acquisition, development, ownership and operation of midstream and other energy producing assets. The Company operates through two segments: the exploration and production of oil and natural gas, and the midstream business, which includes the Catarina gathering system. The Exploration and Production segment explores for and produces crude oil and natural gas. The Midstream segment operates the gathering, processing and transportation of crude oil, natural gas liquids (NGLs) and natural gas. The exploration and production business includes oil and natural gas reserves located in the Eagle Ford Shale in South Texas and in other areas of Texas and Louisiana, as well as properties in the Mid-Continent region. The Company's total estimated proved reserves total over 11.6 million barrels of oil equivalent (MMBoe). It owns approximately 1,992 net producing wells.
The Company has oil and gas properties in over three basins in the Mid-Continent region of the United States, such as Cherokee Basin, Woodford Shale and Central Kansas Uplift. The Cherokee Basin has approximately 6.6 MMBoe of estimated proved reserves, over 98% of which are classified as proved developed, with approximately 93% being natural gas and over 7% being oil. The Woodford Shale has approximately 84 thousand barrels of oil equivalents (MBoe) of estimated proved reserves, all of which are classified as proved developed and natural gas. The Central Kansas Uplift has approximately 30 MBoe of estimated proved reserves, all of which are classified as proved developed, with approximately 7% being natural gas and over 93% being oil. In addition, the Company owns properties in the onshore Texas and Louisiana Gulf Coast Region, where it has approximately 4.8 MMBoe of estimated proved reserves, all of which are classified as proved developed, with over 30% being natural gas, approximately 15% being NGLs, and over 55% being oil.
The Company does not operate any of its oil and gas properties, except in the Cherokee Basin where it operates a substantial portion of its properties. In the Woodford Shale, approximately 95% of the wells are operated by affiliates of Linn Energy LLC and Newfield Exploration Mid-Continent, Inc., with the remaining wells operated by three additional companies. Murfin Drilling Company, Inc., an oil producer in Kansas, operates all of its wells in the Central Kansas Uplift. Zachry Exploration, LLC operates assets located in onshore southern Louisiana, with the remaining wells in Texas being operated by Sanchez Oil & Gas Corporation (SOG).
The Catarina gathering system consists of gathering assets, pipelines, processing units, compression units and other related assets in Western Catarina, which are located in Dimmit and Webb Counties, Texas, and services upstream production from the Eagle Ford Shale. The Catarina gathering system consists of approximately 150 miles of gathering lines, compressors, tanks, vessels and other miscellaneous production infrastructure. The gathering pipelines range in diameter from 4 to 12 inches, with capacity of approximately 40,000 barrels per day for crude oil and NGLs, and over 200 million cubic feet per day (MMcf/d) for natural gas. There are over four gathering and processing facilities, which include approximately eight stabilizers of over 5,000 barrels per day, approximately 25,000 barrels of storage capacity, NGL pressurized storage, over 18,000 horsepower of compression and approximately 300 MMcf/d of dehydration capacity. The gathering system is used solely to support the gathering, processing and transportation of crude oil, NGLs and natural gas produced by Sanchez Energy in the Western Catarina. The gathering system has crude oil interconnects with the Plains All American Pipeline header system delivered to the Gardendale terminal, and to all four takeaway pipelines to Corpus Christi, and it has natural gas interconnects with Southcross Energy, Kinder Morgan, Energy Transfer and Transwestern Pipeline.
Sanchez Production Partners LP
1000 Main St Ste 3000
HOUSTON TX 77002-6342