Penn Virginia Corporation has closed an acquisition for $47.9 million in the Arkoma Basin of eastern Oklahoma primarily targeting Hartshorne coalbed methane (CBM), with upside potential in the Woodford and Caney Shales.

Transaction Highlights

Estimated proved reserves of 18.8 billion cubic feet of natural gas equivalent ("Bcfe") and 14.8 Bcfe of probable and possible reserves; Current net production of approximately 3.1 million cubic feet of natural gas equivalent per day;

Approximately 22,700 gross (15,800 net) acres located adjacent to PVA's Riverbend horizontal Hartshorne CBM project in McIntosh and Hughes Counties, Oklahoma with approximately 80 potential CBM locations; and Potential upsides include reserves associated with the Woodford and Caney Shales (approximately 13,700 prospective net acres), shallow conventional reservoirs, and downspaced horizontal Hartshorne CBM drilling.

The acquisition was funded with cash on hand and borrowings under PVA's revolving credit facility.

A. James Dearlove, President and Chief Executive Officer, stated, "Located adjacent to our existing Riverbend project, this acquisition has attractive transaction economics and provides us with additional exposure to potential upside opportunities. The acquisition is consistent with our growth strategy and also supports our belief that the Mid-Continent region contains numerous attractive expansion opportunities."