Penn Virginia To Sell Mississippi Assets For $72.7 Mln - Quick Facts

(RTTNews) - Penn Virginia Corp. (PVA) announced that it has entered into a definitive agreement to sell its Mississippi assets to an undisclosed buyer for gross cash proceeds of $72.7 million. The sale is expected to close in July 2014 and is subject to customary purchase price adjustments and other customary closing conditions. The effective date of the sale is April 1, 2014.

The properties to be sold had net production of approximately 11.9 million cubic feet of natural gas equivalent per day during the first quarter of 2014, almost 100 percent of which was natural gas. As a result of the divestiture, our 2014 production will decrease by an estimated 1.9 billion cubic feet of natural gas equivalent (Bcfe).

Estimated proved reserves associated with the divested properties, as determined by our third party engineers at year-end 2013, were 85.3 Bcfe, 69 percent of which were proved developed and approximately 100 percent of which were natural gas.