A. James Dearlove, President and Chief Executive Officer, stated, "Located adjacent to some of our better Cotton Valley acreage, this acquisition has attractive transaction economics and provides us with significant exposure to potential upside opportunities. Including the Woodlawn Field acquisition announced in July, we have recently acquired 41 Bcfe of proved reserves and approximately 114 Bcfe of estimated probable and possible reserves in our core Cotton Valley area for approximately $67 million."

Penn Virginia Corporation has closed an acquisition for $44.9 million in east Texas targeting the Cotton Valley.

Transaction Highlights

Estimated proved reserves of 21.9 billion cubic feet of natural gas equivalent ("Bcfe"), 2.4 Bcfe of which are proved developed reserves, and approximately 104 Bcfe of estimated probable and possible reserves;

Current net production of approximately 1.1 million cubic feet of natural gas equivalent per day;

Approximately 4,800 gross (4,700 net) acres located adjacent to PVA's North Carthage Field in Harrison and Panola Counties, Texas with approximately 110 potential Cotton Valley locations; and

Additional upsides include 20-acre down-spacing in the Cotton Valley and potential from the shallower Travis Peak formation.

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