South Texas Eagle Ford

As of November 2015, Penn Virginia had approximately 100,000 net acres in the volatile oil window of the Eagle Ford Shale play in Gonzales and Lavaca Counties, Texas.  We entered this play in August 2010 and have over 330 producing wells.

For the remainder of 2015 and in 2016, we expected to utilize one operated drilling rig in the Eagle Ford Shale, down from eight rigs at the beginning of 2015 and two rigs in the second quarter of 2015. 

We are focused on maintaining our core position in the Eagle Ford.  In the Eagle Ford Shale, we estimate as of December 31, 2014 that we have approximately 94.1 million barrels of oil equivalent (MMBOE) of proved reserves, 87% of which was oil and NGLs and 13% of which was natural gas, with 29% being proved developed.

Latest Production

Our latest Eagle Ford production was 14,188 BOEPD during the three months ended March 31, 2016, with oil comprising 10,504 BOPD, or 74 percent, and NGLs and natural gas comprising approximately 14 percent and 12 percent.

Undeveloped Eagle Ford Acreage

In August 2014, we acquired undeveloped acreage in the Eagle Ford in Lavaca County, Texas for a purchase price of $ 45.6 million, of which $34.9 million was paid at closing and the balance of $10.7 million will be paid over three years as a drilling carry. We anticipate that we will incur an obligation for $1.9 million under the drilling carry commitment by June 2016.