Core Oil & Gas Plays
Penn Virginia Corporation (NYSE: PVA) is an independent oil and gas company engaged primarily in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in Appalachia.
Due to low natural gas prices over the past few years, we are focused on oil and NGL (natural gas liquids) investment opportunities rather than natural gas. In the third quarter of 2013, oil and NGL production was 67% (53% oil and 14% NGLs) of our total production, an increase compared to 48% during 2012. These investments have yielded higher cash flows and margins that more than offset the declines in natural gas production volumes and realized natural gas prices. We expect our oil and NGL production to continue to grow as a percentage of our total production as we pursue higher rate-of-return projects in economically attractive oil and NGL-rich areas.
As of December 31, 2012, our proved reserves were approximately 113.5 million barrels of oil equivalent (MMBOE), of which 41% were proved developed reserves. At mid-year 2013, including assets acquired in the Eagle Ford Shale in April 2013 for approximately $400 million, our proved reserves in the Eagle Ford Shale increased to 51.0 MMBOE from 26.2 MMBOE at December 31, 2012. Including probable and possible reserves, our total reserves in the Eagle Ford Shale were approximately 170 MMBOE at June 30, 2013.
Our operations currently include primarily unconventional developmental drilling opportunities and exploratory prospects. We believe our sizeable presence in the Eagle Ford Shale provides us opportunities for continued oil and NGL-focused investments over the next several years.