Penn Virginia Corp grew Eagle Ford reserves 161% in 2012 from 10 mmboe to 26.1 mmboe. Reserves received a boost as the company’s production grew to 6,900 boe/d in the fourth quarter of 2012, which represents growth of 600 boe/d over third quarter volumes of 6,300 boe/d.
Penn Virginia has plans to spend 88% or ~$335 million of its $360-400 million budget in the Eagle Ford.
H. Baird Whitehead, CEO, concluded, “Our steadily improving results have been driven primarily by our oily Eagle Ford Shale play where we significantly increased our acreage and drilling inventory during 2012. Building on this success, we plan to commit approximately 88 percent of estimated 2013 capital expenditures to the Eagle Ford Shale, drilling approximately 38 (28.8 net) wells and focusing on expanding our Eagle Ford Shale position.”
The company also expects estimated ultimate recovery (EUR) for Eagle Ford wells with full-length laterals in Gonzales County are approximately 400,000 boe and in Lavaca County EURs are approximately 500,000 boe. A recently completed Eagle Ford well, the Technik #1H in Lavaca County, was completed with 18 frac stages and tested at an initial rate of 1,136 b/d and 1.9 mmcfd on a 25/64th inch choke at flowing casing pressure of approximately 2,350 psi.
In January, PVA had 66 (55.1 net) Eagle Ford Shale wells on line, with one (0.9 net) well waiting on completion, two wells being drilled in the Eagle Ford Shale in Lavaca County and one horizontal test well being drilled in the Pearsall Shale in Gonzales County.
Currently, the company has approximately 40,000 gross ( 32,000 net) acres targeting the Eagle Ford Shale. In the fourth quarter, the company added approximately 2,000 net acres at a cost of approximately $4.9 million
Gonzales County Pearsall Well Being Tested
The company should begin completion of it’s Pearsall test in Gonzales County late in the first quarter. The company completed a vertical well and a core test in 2012. Watch for well results as this will be one of the first publicized Pearsall wells in the area. EOG is testing other formations in the area, but has yet to comment on its exploration program publically.
Read more from the company’s year-end ops update at pennvirginia.com