Sector Update: Energy
Energy stocks are fractionally higher, with both the NYSE Energy Sector Index and the S&P Energy Index rising about 0.1% in mid-day trade. Crude oil for October delivery is up 33 cents this afternoon at $95.80 a barrel. September natural gas is flat at $2.66 per 1 million BTU.
In company news, Sanchez Energy Corporation ( SN ) shares are over 6% higher at around $18.70 apiece with the exploration and production company saying two wholly owned wells in the Eagle Ford shale in Texas recently flow-tested at combined 2,489 barrels of oil equivalent per day.
The Prost #1H well was drilled 16,216 feet deep and flowed at 1,120 barrels per day. The Prost #2H well reach a total measured depth of 17,168 feet and flowed 1,369 barrels over a 24-hour period. Both wells produced about 90% crude oil and 10% natural gas.
SN owns about 51,000 net acres in the Eagle Ford, with room for between 420 to 630 wells, based on spacing of 80 to 120 acres between each well.
In other sector news,
(+) MPET, (+33.7%) Stratex Oil & Gas offers to acquire the company for $2.30 per share in cash and stock, according to a Dow Jones Newswire report.
(+) CVX, (+0.5%) Reportedly moving quickly toward a strategic partnership with Argentina's state oil company, YPF, to increase production and open the country's Vaca Muerta shale resources to development, according to the Financial Times.
(-) RGP (-0.4%) Expanding processing facility in northern Louisiana.
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