Penn Virgina snaps up Eagle Ford land

Purchase: Penn Virgina buys Eagle Ford assets

US independent Penn Virginia has agreed to buy about 11,660 net acres in the Eagle Ford shale in Texas for about $45 million.

The properties are located in Lavaca County, Texas. The seller was undisclosed.

Penn Virginia will pay about $34 million in cash at closing and another $11 million will be paid over time as a drilling carry.

The sale is expected to close in next month.

With the deal, Penn Virginia will own about 101,800 net Eagle Ford acres.

The latest purchase is adjacent to the company's Shiner area and is estimated to contain around 150 potential drilling locations, most of which are expected to be prospective for the Upper Eagle Ford.

Chief executive Baird Whitehead said the properties also have potential in the Lower Eagle Ford and Austin Chalk intervals.

"This acquisition is an optimal fit with our current acreage position in Lavaca County," he said in a statement.

"We are increasingly confident about the Upper Eagle Ford potential across a large portion of our acreage position... and will continue to expand our position primarily through an ongoing leasing effort."

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