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.
Having completed our transformation to a “pure play” E&P company, we are now focusing our efforts on oil and NGL (natural gas liquids) investment opportunities rather than natural gas. In the first quarter of 2013, our oil and NGL production was 58% (42% oil and 16% 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 decline in production volumes and realized prices from our natural gas production assets. 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 MMBOE, of which 41% were proved developed reserves. Pro forma for the acquisition of 12.0 MMBOE of Eagle Ford Shale assets in April 2013 for approximately $400 million, our proved reserves were 125.5 MMBOE at December 31, 2012. 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.