Penn Virginia Corp. agreed to pay Magnum Hunter Resources Corp. $400 million to acquire producing and undeveloped leasehold interests in the South Texas Eagle Ford shale, said the Radnor, Pa., independent.
The acquisition of 40,600 gross (19,000 net) acres includes 43 producing wells and 345 potential drill sites in Gonzales and Lavaca counties. Estimated proved reserves are 12 million boe with current production of 3,200 boe/d, Penn Virginia said.
Closing is scheduled for early to mid-May, subject to customary post-closing adjustments.
After closing Penn Virginia will have 83,000 gross (54,000 net) contiguous acres in the oil window of the Eagle Ford shale.
“With this acquisition, we now expect to drill up to 62 (39.3 net) Eagle Ford shale wells during 2013, as compared to current guidance of 38 (28.8 net) Eagle Ford shale wells,” Penn Virginia said.
The independent also expanded its Eagle Ford holdings last year (OGJ Online, Oct. 3, 2012).