Capital Efficiency

Sanchez Energy achieved ~55% decrease in well cost in 2015.

Click image to view SN’s 2016 Analyst and Investor Day Presentation.

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In 2015, our operations delivered exceptional results on all fronts in terms of both increased well productivity and continued cost reductions. We improved well results in all areas through increased drilling and completion efficiencies. Next, we reduced our capital cost structure considerably across all of our asset areas. These two accomplishments alone significantly improved our well economics throughout our portfolio and allowed us to reach our original production target range with a significantly reduced capital program. Furthermore, despite our lower capital spending levels, we continued to appraise our large acreage position in the Catarina and Cotulla areas of the Eagle Ford which resulted in booking of new proven undeveloped reserves in these areas. Strong production also resulted in positive revisions to existing reserve forecasts of proven developed producing and proven undeveloped wells for Catarina and Cotulla.

Read more in our Q4 and Full Year 2015 Financial and Operations Press Release.

 

*Based on 4Q 2015 average well cost; costs include well site facilities and estimated artificial lift.