Thursday, August 12, 2010

Penn Virginia (PVA) Penetrates Eagle Ford Shale

By Andrea:

Penn Virginia Corp. (PVA) announced an acquisition in the Eagle Ford Shale today where the company acquired roughly 6,800 acres in Gonzales County, Texas. The land was acquired for $31.1 million, totaling about $4600 per acre.

The acreage is estimated to contain over 40 horizontal well locations, with working interest averaging approximately 73 percent (net revenue interest averaging approximately 55 percent). They will operate and expect reserves from wells on the acreage to be predominantly oil.

A. James Dearlove, President and Chief Executive Officer, stated, "We are pleased to have expanded our portfolio to include a position in one of the most exciting new plays in the industry. This acquisition, in a core area of the Eagle Ford Shale, provides us with a high-quality; oily position which we believe will be an excellent use of the proceeds from recent divestitures of non-core assets."

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