Penn Virginia Acquires Eagle Ford Acreage – $45 Million

Company Position Increases to 101,800 EFS Acres
Penn Virginia Eagle Ford Acreage Map

Penn Virginia Eagle Ford Acreage Map | Click to Enlarge

Penn Virginia Corp. announced in July of 2014 that it will acquire ~13,125 (11,660 net) Eagle Ford acres in Lavaca County, TX for $45-million.

The transaction will bring the company’s total Eagle Ford position to 142,500 (101,800 net) acres. The newly acquired assets are located next to the company’s Shiner area. Officials estimate ~150 gross potential drilling locations from the acquired acreage, most of which will be prospective for the Upper Eagle Ford Shale.

Recently, Penn-Virginia stated it planned to further expand its Eagle Ford position to a minimum of 100,000 net acres. With this most recent acquisition, the company will reach its target goal.

Read morePenn Virginia Seeks to Expand Eagle Ford Position

“This acquisition is an optimal fit with our current acreage position in Lavaca County, and we believe is primarily prospective in the Upper Eagle Ford Shale, but could also have potential in the Lower Eagle Ford Shale and Austin Chalk,” said Penn Virginia CEO H. Baird Whitehead.

Penn-Virginia has been growing aggressively in the Eagle Ford. During the first quarter alone, the company added 6,400 net acres at a cost of $3,000 per acre.

Closing for the recently acquired Lavaca County acreage will be in August of 2014.


Penn Virginia – Lower Production – Eagle Ford Delays

Penn Virginia Corporation lowered fourth quarter 2011 production guidance along with its Eagle Ford type curves.  Not much detail was given, but the release indicated there have been delays in completing wells and that the company has revised its expected well profiles. [Read more…]

Penn Virginia Corp Adds Gonzales County Acreage – Q311 Ops

Penn Virginia announced the acquisition of 2,000 acres in Gonzales County, TX, which brings the company’s position up to almost 15,000 net acres. Well results are promising. The company reports average 30-day production rates of approximately 690 boe/d. That’s from an average peak rate of more than 1,000 boe/d.

Penn Virginia has four rigs working in the area and plans to exit the year with three active Eagle Ford rigs.  The company has 20 gross (16.7 net) wells that produced more than 22 mmcfe/d in the third quarter of 2011.

Expect the company to continue adding small acreage add-ons in the coming year as it fully delineates its position. [Read more…]