Sanchez Production Partners LP

Priced public offering of about 6.55 million common units representing limited partner interests at $11 each. A separate, concurrent private placement of about 2.27 million common units priced at $11 each was made to Sanchez Energy Corp. Underwriters granted a 30-day option to purchase 982,620 additional units. The net proceeds, together with about $28 million in credit facility borrowings, will be used in the following ways:
--About $80 million will help acquire a 50% equity interest in Carnero Processing LLC from Sanchez Energy, and about $24.9 million will pay the purchase price for certain wellbores and escalating working interests and other production assets that SPP intends to acquire from Sanchez Energy.

--SPP will use about $25 million from the private placement to repay outstanding credit facility borrowings. Citigroup, RBC Capital Markets, BofA Merrill Lynch and Johnson Rice & Co. LLC are joint book-running managers. Johnson Rice is also the structuring agent. Seaport Global Securities, Stephens Inc. and Tudor, Pickering, Holt & Co. are co-managers.