Penn Virginia Oil & Gas Corp.

Penn Virginia Oil & Gas Corp. has retained RBC Richardson Barr to sell its mineral interest ownership in the Appalachian Basin primarily in eastern Kentucky, northern Virginia and southern West Virginia. The package includes a 12.5% royalty on approximately 385,000 acres held by production. The assets include 1,842 producing wells. Net production for June was 6 million cubic feet equivalent per day (100% gas). Cash flow for the first half of 2008 was $8.5 million, with $1.9 million in June. Wright & Co. estimate net proved reserves of 54.8 billion cubic feet equivalent as of Oct. 1. Total proved, probable and possible (3P) reserves are 82.6 billion equivalent, which does not include horizontal Devonian shale potential. Primary operators are Cabot Oil and Gas Corp., Dominion and Equitable Resources Inc. Multiple drilling objectives include 1,653 locations with 28 horizontal Devonian shale wells that have been drilled or permitted on PVA acreage. Potential additional net resources in the Huron shale involve 25- to 38 billion equivalent. The bid due date is Nov. 4. The effective date is Oct. 1. Closing is in mid-December. Contact Don Cordier, 713-585-3300.