Penn Virginia Corp. reported the purchase of acreage in South Texas that is prospective for the Eagle Ford Shale, marking the company’s first purchase in the Eagle Ford Shale. Settled with cash on hand, Penn Virginia Corporation acquired 6,800 net acres for $31.1 million.
Penn Virginia Corporation said that the acreage is contiguous to the company’s existing acreage in the area. The new acreage comprises at least forty locations that can be used for horizontal drilling. The company said that the properties contain mostly oil.
This was the company’s second acquisition over the last three months. In May 2010, Penn Virginia Corporation acquired acreage in Pennsylvania with exposure to the Marcellus Shale formation.
Penn Virginia Corporation reported that the acreage was located in Potter, Somerset and Tioga Counties, and the company paid $19.5 million for the properties. The acquisition brought the company’s total number of Marcellus Shale net acres to 40,000.
Penn Virginia Corporation is an oil and gas exploration and production company with properties in Texas, Mississippi, Pennsylvania and West Virginia.
For more information on the company, go to www.pennvirginia.com