Penn Virginia to buy Eagle Ford Assets for $205 mln
U.S. oil producer Penn Virginia Corp said on Monday it would buy assets in the Eagle Ford shale in Texas from larger rival Devon Energy Corp for $205 million to expand in the area.
The assets, which comprise about 19,600 net acres adjacent to Penn Virginia's core operations, are expected to increase the company's production by about 30 percent or 3,000 barrels of oil equivalent per day.
Devon's sale of the assets is part of its program to sell $1 billion in assets, first announced in May.
Penn Virginia said it would fund the all-cash deal through debt financing.
Reporting by Ahmed Farhatha
