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Sanchez's Oil Production Down 9% Over Year

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Sanchez Energy Corporation has announced operating results for the first quarter 2016.

Highlights:

• Sanchez Energy's average well costs ~$3.3 million Q1 2016
• Production of 5.1 MMBOE, average production of ~56,500 (BOE/D) Q1 2016
• The Carnero Pipeline, constructed by Sanchez Energy's joint venture with a subsidiary of Targa Resources Corp., went in-service in March 2016 and now transports the majority of Catarina gas volumes to a cryogenic gas plant owned by the joint venture
• The Company is currently running two rigs and expects to reduce drilling operations to one rig by the end of the second quarter 2016.

Production Update

• The Company's estimated total production for the first quarter 2016 was approximately 56,500 BOE/D, which represents an increase of approximately 25% over first quarter 2015 production.
• The Company's first quarter 2016 production exceeded the high end of the Company's production guidance for the quarter, which ranged from 48,000 to 52,000 BOE/D, by over 8.5%.
• The Company's production mix during the first quarter of 2016 consisted of approximately 32% oil, 35% natural gas, and 33% natural gas liquids (NGLs).

Total production volumes are summarized in the following table:

Operations Update

• During the first quarter of 2016, the Company spud 19 gross (19 net) wells, and completed 19 gross (17 net) wells.
• Drilling and completion costs at Catarina during Q1 2016 averaged ~$3.3 mm per well, with some wells coming in at approximately $3.0 million during the quarter.
• At Cotulla, well costs during Q1 2016 averaged ~$3.4 mm per well, with recent results also coming in at ~$3.0 million per well.
• At Catarina, drilling durations (spud to total depth) are now consistently coming in at ~8 days per well.
• Similarly, at Cotulla, drilling durations have continued to decline, with recent wells coming in at ~6 days per well.
• During the first quarter 2016, the Company brought 11 wells on-line in South-Central Catarina. While the wells are still in the early stages of flowback, rates and pressures have performed in line with expectations.
• At Cotulla, the Company brought 4 wells on-line at the end of the first quarter 2016. The wells are still in the early stages of flowback, but are performing in line with expectations. The Company expects to bring two additional wells on-line at Cotulla during the second quarter 2016.
• In accordance with the Company's 2016 capital plan, approximately 70% of 2016 capital spending is expected during the first half of the year.

Drilling Activity (Wells & Rigs)

As of March 31, 2016, the Company had 640 gross (522 net) producing wells with 17 gross (15.5 net) wells in various stages of completion:

Tony Sanchez, III, Chief Executive Officer of Sanchez Energy said: "At Catarina, we continue to shift our focus to the South-Central region of the ranch, which is proving to be a more productive area of development than we originally anticipated. During the first quarter 2016, we brought 11 new development wells on-line in South-Central Catarina. Early results from these wells have confirmed our geologic interpretation and are significantly exceeding results seen in the Western region of Catarina."