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.
Sanchez buying Eagle Ford assets from Hess
Sanchez buying Eagle Ford assets from Hess
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group