Eagle Ford

Sanchez Energy has a long history in the Eagle Ford Shale, where as of December 31, 2017, we had assembled approximately 487,000 gross leasehold acres (approximately 285,000 net acres) and have over 8,000 gross (3,700 net) specifically identified drilling locations for potential future drilling. As of December 31, 2017, approximately 748 of these drilling locations represented proved undeveloped reserves. These locations were developed using existing geologic and engineering data. The approximately 7,252 additional gross drilling locations are specifically identified non-proven locations that have been identified by our management team. For the year 2018, we plan to invest substantially all of our capital budget in the Eagle Ford Shale.

In our Catarina area, we have approximately 106,000 net acres in Dimmit, LaSalle and Webb Counties, Texas representing a 100% working interest. We anticipate drilling, completion and facilities costs on our acreage to be between $3.0 million and $6.0 million per well based on our current estimates and historical well costs. The variability in the cost is largely a factor of lateral lengths, which can vary from approximately 4,400 feet to approximately 11,000 feet. We have identified greater than 1,150 gross (1,150 net) locations for potential future drilling on our Catarina acreage. For the year 2018, we plan to spend $205 million to $215 million to spud 44 net wells and complete 44 net wells in our Catarina area.

In our Comanche area, we have approximately 252,000 gross (61,000 net) acres in Dimmit, Webb, La Salle, Zavala and Maverick Counties, Texas, representing a 24% working interest. We anticipate drilling, completion and facilities costs on our acreage to average between $3.0 million and $6.0 million per well. The variability in the cost is largely a factor of lateral lengths, which can vary from approximately 4,400 feet to approximately 11,100 feet. We have identified greater than 5,300 gross (1,300 net) Eagle Ford locations for potential future drilling on our Comanche area. For the year 2018, we plan to spend $145 million to $150 million to spud 33 net wells and complete 19 net wells in our Comanche area. Additionally, we anticipate spending $40 million to $50 million to complete an additional 21 net drilled-but-uncompleted wells (“DUCs”).

In our Maverick area, we have approximately 110,000 net acres in Dimmit, Frio, LaSalle, and Zavala Counties, Texas. We believe that our Maverick acreage lies in the black oil window, where we anticipate drilling, completion and facilities costs on our acreage to be between $5.5 million and $6.0 million per well based on our current estimates and historical well costs. The variability in the cost is largely a factor of lateral lengths, which can vary from approximately 9,500 feet to approximately 10,000 feet. We have identified greater than 1,050 gross (1,000 net) locations for potential future drilling on our Maverick area. For the year 2018, we plan to spend $15 million to $25 million to spud 3 net wells and complete 3 net wells in our Maverick area.

In our Palmetto area, we have approximately 7,600 net acres in Gonzales County, Texas. Our Palmetto acreage lies in the volatile oil window where we anticipate drilling, completion and facilities costs on our acreage to be between $5.5 and $6.0 million per well based on our current estimates and historical well costs. We have identified greater than 440 gross (215 net) locations for potential future Eagle Ford drilling in our Palmetto area. For the year 2018, we plan to spend $2 million to spud 1 net well in our Palmetto area.