Penn Virginia plans to increase its Eagle Ford production, acreage, and drilling with the purchase of assets from Devon Energy Corporation.
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.
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.