Penn Virginia acquired 4,100 net acres in Gonzales and Lavaca counties for $10 million. Working interests owners and joint venture partners will acquire portions of the acreage, so Penn Virginia position will only increase by 3,000 net acres. The company now has 40,100 gross (30,000 net) acres targeting the Eagle Ford.
The acreage is comprised of 3,200 net acres in Gonzales County and 895 net acres in Lavaca County. The acreage in Gonzales is adjacent to company’s development area and the acreage in Lavaca was referred to as “complementary”. The company expects it acquired 30 potential Eagle Ford drilling locations in total.
Penn Virginia reports 54 wells are on production in the Eagle Ford, with over 200 potential drilling locations. The company has targeted the volatile oil window and reported initial production rates of more than 1,000 boe/d per well. The company has an 83% working interest in its Gonzales acreage and a 57% interests in its Lavaca County acreage.