Lower well costs, hedges fortify Sanchez Energy

摘要

Houston-Small Eagle Ford Shale producer Sanchez Energy’s work last year to reduce its well costs and hedge its oil output will pay off in what looks to be a continued lower oil price environment in 2016, its top officials said Wednesday. The company, which has proposed a capital budget of just $200 million-$250 million this year, down 60% from 2015, claims it can maintain last year’s production of around 52,000 b/d of equivalent oil and still generate returns at a $30/b to $40/b oil price.