Penn Virginia Corp. (NYSE: PVA) has entered into an agreement to sell its East Texas assets to an undisclosed buyer for gross cash proceeds of $75 million. The sale is expected to close by the end of August. The effective date of the sale is May 1.
The properties to be sold had net production of approximately 1,870 barrels of oil equivalent (boe) per day during the second quarter of 2015, consisting of 76% natural gas, 16% natural gas liquids (NGLs), and 8% oil.
As a result of the divestiture, reported 2015 production is expected to decrease by an estimated 200,000 boe. Estimated proved reserves associated with the divested properties at year-end 2014, as determined by third-party engineers, were 13.7 million boe, 85% of which were proved developed. The reserves consisted of 77% natural gas, 16% NGLs, and 6% oil.
Penn Virginia Corp. is engaged in the exploration, development, and production of oil, NGLs, and natural gas in onshore regions of the US, with a primary focus on the Eagle Ford shale play in south Texas.