Penn Virginia Corporation Provides an Update on Lavaca County Eagle Ford Shale Operations
RADNOR, Pa.--(BUSINESS WIRE)-- Penn Virginia Corporation (PVA) today provided an update of its Eagle Ford Shale operations in Lavaca County, Texas.
Eagle Ford Shale
Operational update highlights are as follows:
The third exploratory earning well, the Schacherl #1H (75 percent
working interest) on our 13,500 gross acre area of mutual interest
(AMI) in Lavaca County was completed and turned in line at the end of
- The Schacherl #1H, with 22 frac stages and a lateral length of approximately 5,450 feet, had an average initial production (IP) rate of 1,277 barrel of oil equivalents per day (BOEPD) of wellhead volume (90 percent oil and 10 percent wet gas; 1,011 BOEPD average over the first seven days of production).
- This well has been significantly choked with a flowing pressure of approximately 3,350 pounds per square inch on a 14/64 choke as the recovery of frac fluid continues.
- This well is located between the first two wells in Lavaca County, the Effenberger #1H and Vana #1H, which have averaged 700 and 441 BOEPD for the 52 and 48 days that they have been on line, respectively.
- The fourth well in Lavaca County, the Sralla #1H, should spud within a week and is located to the southwest of the Effenberger well near the Gonzales County line.
- Two additional wells are expected to be drilled in Lavaca County during 2012, thereby fulfilling our requirements under the AMI and earning our remaining net acreage.
- We recently added 1,680 net acres to our Eagle Ford Shale position, bringing our acreage position in Gonzales and Lavaca Counties to approximately 36,100 gross (a minimum of approximately 24,900 net) acres, assuming we earn a minimum of approximately 6,800 net acres of remaining AMI acreage in Lavaca County.
- Assuming down-spacing on the majority of our acreage, we currently estimate that we have up to approximately 250 total well locations, of which 48 have been drilled.
H. Baird Whitehead, President and Chief Executive Officer stated, We are pleased with the results of the Schacherl well, which had the highest IP of the three wells drilled to date in Lavaca County. Overall, the results in Lavaca County have been very encouraging. We will continue to drill wells over the next few months to earn the remaining AMI acreage, as well as to increase our understanding of the potential of this acreage position, including areas farther to the east.
Penn Virginia Corporation is an independent oil and gas company engaged primarily in the development, exploration and production of natural gas and oil in various domestic onshore regions including Texas, Appalachia, the Mid-Continent and Mississippi. For more information, please visit our website at www.pennvirginia.com.
Certain statements contained herein that are not descriptions of historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the volatility of commodity prices for natural gas, natural gas liquids and oil; our ability to develop, explore for, acquire and replace oil and gas reserves and sustain production; our ability to generate profits or achieve targeted reserves in our development and exploratory drilling and well operations; reductions in the borrowing base under our Revolver; our ability to contract for drilling rigs, supplies and services at reasonable costs; our ability to obtain adequate pipeline transportation capacity for our oil and gas production at reasonable cost and to sell the production at, or at reasonable discounts to, market prices; the uncertainties inherent in projecting future rates of production for our wells and the extent to which actual production differs from estimated proved oil and gas reserves; drilling and operating risks; leasehold terms expiring before production can be established; environmental liabilities that are not covered by an effective indemnity or insurance; the timing of receipt of necessary regulatory permits; our ability to maintain adequate financial liquidity and to access adequate levels of capital on reasonable terms; the occurrence of unusual weather or operating conditions, including force majeure events; changes in governmental regulations or enforcement practices, especially with respect to environmental, health and safety matters; uncertainties relating to general domestic and international economic and political conditions; and other risks set forth in our filings with the Securities and Exchange Commission (SEC).
Additional information concerning these and other factors can be found in our press releases and public periodic filings with the SEC. Many of the factors that will determine our future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect managements views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Penn Virginia Corporation
James W. Dean, 610-687-7531
Vice President, Corporate Development
Source: Penn Virginia CorporationCopyright Business Wire 2012