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.

Eight (6.6 net) Eagle Ford Shale wells have been completed and turned in line since our last report in August 2011, bringing the total to 20 (16.7 net) Eagle Ford Shale wells to date, with an average peak gross production rate of 1,012 barrels of oil equivalent (BOE) per day (BOEPD) per well.

Approximately 2,000 net acres were added to the Eagle Ford Shale play in the third quarter of 2011, bringing total acreage to approximately 17,900 (14,700 net) acres in Gonzales County, Texas with approximately 140 identified well locations

Thus far in 2011, Penn Virginia has added 7,300 net acres in Gonzales County for approximately $27 million. We have identified approximately 140 horizontal well locations on our current position of approximately 17,900 gross acres, including the 24 wells that have been drilled. Our full-year 2011 guidance anticipates up to 33 (27.5 net) wells, with up to 12 (10.0 net) wells to be drilled during the fourth quarter of 2011. We continue efforts to expand our Eagle Ford Shale position in the county and other prospective areas in the play through additional leasing and selective acquisitions.