Penn Virginia reports acquisition of Eagle Ford shale assets
RADNOR -- Penn Virginia Corporation (PVA) reported that it has entered into a definitive agreement to acquire approximately 13,125 (11,660 net) Eagle Ford Shale acres in Lavaca County, Texas for approximately $45 million, of which approximately $34 million will be paid at closing and the balance of approximately $11 million will be paid over time as a drilling carry. The sale is expected to close in August 2014 and is subject to customary closing conditions.
The transaction, combined with recent leasing, will bring our total Eagle Ford Shale acreage position to approximately 142,500 (101,800 net) acres. The acquired acreage is adjacent to our Shiner area and is estimated to contain approximately 150 gross potential drilling locations, most of which we expect will be prospective in the Upper Eagle Ford Shale.
H. Baird Whitehead, President and CEO stated, "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. With the recently stated results of the Welhausen #A-2H, which was completed in the Upper Eagle Ford Shale, and its performance of approximately 730 bopd and 1,390 boepd after almost two months of production, we are increasingly confident about the Upper Eagle Ford potential across a large portion of our acreage position, including this acquired acreage. We will also hit our minimum corporate target of 100,000 net acres in the Eagle Ford Shale, and will continue to expand our position primarily through an ongoing leasing effort."