Penn Virginia Corp., Houston, is to acquire Eagle Ford assets primarily in Lavaca County, Tex., for $205 million cash from Devon Energy Corp., Oklahoma City.
The purchase of 19,600 net acres will increase Penn Virginia’s net production by about 3,000 boe/d, of which 64% is oil.
Penn Virginia anticipates a closing on or before Sept. 30 with an effective date of Mar. 1. The company expects that the purchase price will be adjusted downward by $15 million to reflect estimated net cash flows from the effective date to closing, resulting in a net purchase price of $190 million.
The Devon sale is part of its $1 billion divestiture program (OGJ Online, May 3, 2017).
Devon said efforts to monetize its Barnett shale properties in Johnson County, Tex., “are progressing.”