Penn Virginia in $73m assets sale

Penn Virginia has sold off a raft of natural gas assets in Mississippi in a cash deal worth more than $70 million.

An unidentified buyer has taken the explorer’s total assets in the US state, where it concentrates on the Selma Chalk formation, for $72.7 million.

The assets being sold had net production of around 11.9 million cubic feet equivalent of gas in the first quarter, almost all of which was comprised of natural gas.

The sale will mean Penn Virginia’s 2014 production will drop by about 1.9 billion cbfe.

The deal is set to close around the 1 August with an effective date of 1 April.

Penn Virginia says on its website that, as of the end of last year, it had 28,200 net acres in three fields in Mississippi: Baxterville, Gwinville and Maxie.

The company recently elected to defer drilling in Mississippi until natural gas prices strengthened, it said.

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