Penn Virginia Buys Eagle Ford Acreage

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
360MM
Description

Closed its purchase of producing properties and undeveloped leasehold interest in the Eagle Ford shale.

Penn Virginia Corp. (NYSE: PVA) has closed on its previously-announced purchase of producing properties and undeveloped leasehold interests in the Eagle Ford shale from Magnum Hunter Resources Corp. (NYSE: MHR) for about $360 million in cash and 10 million shares of its common stock.

The acquisition, which was announced earlier this month, had an effective date of Jan. 1. The 19,000 acres includes and seven drilled wells and four drilling wells.

Penn Virginia, based in Radnor, Penn., will fund the cash portion of the purchase price from private debt. RBC Capital Markets served as our exclusive financial advisor on the transaction.

To hedge production from the purchase, sold a swap for 2,000 barrels of West Texas Intermediate per day at $90.43 per barrel from May 1 through Dec. 31.

Penn Virginia has assets in Texas, Oklahoma, Mississippi and Pennsylvania.