Penn Virginia Corporation (NYSE:PVA) – an oil and gas company with a primary focus in the Eagle Ford Shale in South Texas – announced yesterday that it 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 2015 and is subject to customary purchase price adjustments and other customary closing conditions. The effective date of the sale is May 1st, 2015.
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 percent natural gas, 16 percent natural gas liquids (NGLs) and 8percent 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 percent of which were proved developed. The reserves consisted of 77 percent natural gas, 16 percent NGLs and 6 percent oil.
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