Sanchez Energy to Buy Eagle Ford Assets from Hess
By Emily Wilkinson
Sanchez Energy Corp. (NYSE: SN) has inked a $265 million deal for assets in the Eagle Ford Shale in South Texas from Hess Corp., which has been shedding properties amid shareholder pressure.
Houston-based Sanchez Energy said the assets are in Dimmit, Frio, LaSalle and Zavala counties, and encompass 43,000 net acres, according to a statement.
Sanchez Energy also said it has priced a private offering of a newly created series of convertible preferred stock of up to $250 million.
Sanchez Energy plans to use the net proceeds from this offering, which is expected to close by March 26, to fund a portion of the Hess acquisition.
New York-based Hess (NYSE: HES), which has a major presence in Houston, has been selling assets to fund drilling and exploration concerns and to reduce costs amid shareholder pressure, reports Rigzone.
