November 11, 2014 - 6:15 AM EST
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Sanchez Energy: Excellent Early Results From Catarina

Sanchez Energy's (NYSE:SN) third quarter operating update lends support to my earlier thesis that the drilling results achieved by Royal Dutch Shell (NYSE:RDS.A) on the Catarina block in the Eagle Ford play strongly understate the asset's productive potential and likely reflect the use of older-generation completion techniques. The average IP-30 rate reported by Sanchez for the first 11 completions on the block in which Sanchez used "latest-generation" recipes exceed Shell's average IP-30 rate by ~70%. While it is still very early to draw conclusions with regard to potential well EURs and drilling returns, these initial results are highly encouraging. Sanchez now sees over 1,200 high-return drilling locations on the block, which makes Catarina by far the most important asset in the company's…

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Source: SeekingAlpha (November 11, 2014 - 6:15 AM EST)

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