Penn Virginia plans to increase its Eagle Ford production, acreage, and drilling with the purchase of assets from Devon Energy Corporation.
Eagle Ford Producing Best Well Results to Date for Baytex
Devon announced on Monday that it will divest $1 billion worth assets, including 19,600 acres in Lavaca County. US-based Penn Virginia will acquire these high-quality Eagle Ford assets for $205 million.
“This strategic acquisition is an excellent fit and an important step in our long-term growth strategy for Penn Virginia. It is particularly attractive as it materially increases our Eagle Ford production, acreage and drilling. The transaction is also accretive to all key per-share metrics including earnings, cash flow and net asset value.”
Highlights of Lavaca County Acquisition
- Includes approximately 19,600 net acres contiguous to Penn Virginia's core operations
- Increases net production by approximately 30%, or approximately 3,000 barrels of oil equivalent per day (“BOEPD”), of which approximately 64% is oil
- Net production value of approximately $105 million ($35,000 per flowing BOEPD)
- Midstream assets valued at approximately $20 million
- Expands Penn Virginia's core leasehold position by 35%
Penn Virginia Corporation is an independent oil and gas company with a primary focus in the Eagle Ford Shale in South Texas. According to the company website, they entered the play in August 2010 and have over 330 producing wells.