Sanchez Production Partners LP (NYSEMKT:SPP) Files An 8-K Completion of Acquisition or Disposition of Assets

Item 2.01 Completion of Acquisition or Disposition of
Assets

On November22, 2016, Sanchez Production Partners LP (the
Partnership) consummated the acquisition of 50% of the
outstanding membership interests in Carnero Processing, LLC to
the previously announced Purchase and Sale Agreement dated
October6, 2016 among the Partnership, Sanchez Energy Corporation
(Sanchez Energy) and SN Midstream, LLC, a wholly-owned
subsidiary of Sanchez Energy. Carnero Processing, LLC is
constructing a cryogenic gas processing facility located in La
Salle County, Texas. The Partnership paid aggregate cash
consideration of approximately $55.5 million and agreed to assume
approximately $24.5 million of remaining capital contribution
commitments in connection with the acquisition, which purchase
price was determined through arms length negotiations between the
general partner of the Partnership and Sanchez Energy, including
independent committees of both entities.

On November22, 2016, the Partnership also consummated the
acquisition of working interests in 23 producing Eagle Ford
wellbores located in Dimmit and Zavala counties in South Texas
together with escalating working interests in an additional 11
producing wellbores located in the Palmetto Field in Gonzales
County, Texas, to the previously announced Purchase and Sale
Agreement dated October6, 2016 among SN Cotulla Assets, LLC and
SN Palmetto, LLC, each a wholly-owned subsidiary of Sanchez
Energy, on the one hand, and the Partnership and SEP Holdings IV,
LLC, a wholly-owned subsidiary of the Partnership, on the other
hand. The Partnership paid aggregate cash consideration of $25.6
million after $1.4 million in normal and customary closing
adjustments, which purchase price was determined through arms
length negotiations between the general partner of the
Partnership and Sanchez Energy, including independent committees
of both entities.

Antonio R. Sanchez,III is Sanchez Energys Chief Executive Officer
and is a member of the board of directors of both Sanchez Energy
and of the general partner of the Partnership. Sanchez Oil and
Gas Corporation (SOG) is a private company that provides
certain services to both Sanchez Energy and the Partnership.
Antonio R. Sanchez,Jr., the father of Antonio R. Sanchez,III, is
a member of the board of directors of Sanchez Energy and both are
officers and directors of SOG. Patricio D. Sanchez, the son of
Antonio R. Sanchez,Jr. and brother of Antonio R. Sanchez,III, is
an Executive Vice President of Sanchez Energy, an officer of SOG
and an officer and director of the general partner of the
Partnership. Eduardo A. Sanchez, the son of Antonio R.
Sanchez,Jr. and brother of Antonio R. Sanchez,III and Patricio D.
Sanchez, is Sanchez Energys President and a director of the
general partner of the Partnership. Antonio R. Sanchez,Jr.,
Antonio R. Sanchez,III, Patricio D. Sanchez and Eduardo A.
Sanchez all directly or indirectly own certain equity interests
in Sanchez Energy, the Partnership, the Partnerships general
partner and SOG.

Item 8.01 Other Events.

On November22, 2016, the Partnership issued a press release
relating to the transactions described in this Form8-K. A copy of
the press release is attached as Exhibit99.1 hereto and
incorporated herein by reference.

About Sanchez Production Partners LP (NYSEMKT:SPP)

Sanchez Production Partners LP, formerly Sanchez Production Partners LLC, is focused on the acquisition, development, ownership and operation of midstream and other energy producing assets. The Company operates through two segments: the exploration and production of oil and natural gas, and the midstream business, which includes the Catarina gathering system. The Exploration and Production segment explores for and produces crude oil and natural gas. The Midstream segment operates the gathering, processing and transportation of crude oil, natural gas liquids (NGLs) and natural gas. The exploration and production business includes oil and natural gas reserves located in the Eagle Ford Shale in South Texas and in other areas of Texas and Louisiana, as well as properties in the Mid-Continent region. The Company’s total estimated proved reserves total over 11.6 million barrels of oil equivalent (MMBoe). It owns approximately 1,992 net producing wells.

Sanchez Production Partners LP (NYSEMKT:SPP) Recent Trading Information

Sanchez Production Partners LP (NYSEMKT:SPP) closed its last trading session up +0.05 at 11.05 with 284,694 shares trading hands.