Penn Virginia Oil & Gas LP

Transaction Type
Gulf Coast
Post Date
Close Date
Estimated Price

Penn Virginia Oil & Gas LP, a subsidiary of Penn Virginia Corp., has retained RBC Richardson Barr to sell all of its assets in the Texas and Louisiana Gulf Coast region. The package includes an average 73% working interest in 60,500 gross acres (42,900 net) of which 45% are developed and held by production. Assets include 102 active wells (64 operated) in 14 fields. Production for July was 14.1 million cubic feet equivalent per day (79% gas; 49% operated) with net cash flow in July of $1.65 million. An independent third-party reserves report as of Oct. 1, 2009, by Wright & Co. Inc. shows net proved producing reserves of 14.7 billion cubic feet equivalent (70% of total proved reserves) and net total proved reserves of 20.9 billion cubic feet equivalent. PVOG has forecast an additional net probable and possible reserves of 49.7 billion cubic feet equivalent. The reserve to production ratio is 4.7 years. Upside include six proved undeveloped locations, five probable and 21 possible. The Canyon Sand play in Edwards County, Texas, involves approximately 21,000 net acres with 243 gross locations (194 net) with net proved reserves of 68.4 billion cubic feet equivalent. The data room will open Sept. 9. The bid due date is Oct. 9. Contact Craig R. Lande, 713-585-3335,