Penn Virginia Acquires Eagle Ford Acreage - $45 Million

July 15, 2014 Kirk Eggleston

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.

“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.”

— 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

December 13, 2011 R.T. Dukes

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.

Fourth quarter production guidance of 10.7 to 11.0 Bcfe, approximately 24 percent of which is expected to be crude oil and approximately 12 percent of which is expected to be natural gas liquids.

The revised fourth quarter production guidance represents a decrease of 1.5 to 1.7 Bcfe from previous guidance of 12.2 to 12.7 Bcfe, primarily due to the timing of Eagle Ford Shale completions and the use of a revised “type curve” profile for estimating production from Eagle Ford Shale wells.
We remain pleased with the results of our Eagle Ford Shale drilling program and remain confident in the reserve expectations and attractive economics for our Eagle Ford wells.

Penn Virginia Corp Adds Gonzales County Acreage - Q311 Ops

November 3, 2011 R.T. Dukes

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.