Penn Virginia recently added approximately 6,800 net Eagle Ford acres to their asset portfolio. The Company paid $31.1 million with cash on hand for the highly contiguous acreage that is primarily in Gonzales County, TX. The new asset is in the oily core area and is estimated to contain over 40 horizontal well locations with an average working interest of roughly 73% and average net revenue interest of roughly 55%.
“We are pleased to have expanded our portfolio to include a position in one of the most exciting new plays in the industry,” A. James Dearlove, President and CEO, said about the deal. “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.”
The following is a map of drilling permits in Gonzales Co. in the last 365 days. Although Penn Virginia did not provide detailed information about where the acquired acreage is this map provides some color as to who else is active in the county.
Penn Virginia also has interest in Mid-Continent, East Texas, Mississippi and the Appalachia areas in addition to their new Eagle Ford assets.
For more information visit the Eagle Ford Acquisition and Divestitures folder in the Unconventional Updates in DI’s DNA.
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