Penn Virginia Corporation (PVA) today announced that it has entered into a definitive agreement with Magnum Hunter Resources Corporation (MHR) to acquire producing properties and undeveloped leasehold interests in the Eagle Ford Shale play for approximately $400 million. We expect the transaction to close in early to mid-May 2013, subject to customary post-closing adjustments.
We will acquire approximately 40,600 (19,000 net) mineral acres located in Gonzales and Lavaca Counties, Texas, in areas adjacent to our current position in both counties. As a result, we will have approximately 83,000 gross (54,000 net) contiguous acres in the volatile oil window of the Eagle Ford Shale, and we will increase our drilling inventory by 345 (169 net) locations from 295 (251 net) drilling locations to 640 (420 net) drilling locations.
The assets include working interests in 46 (22.1 net) producing wells, bringing our combined producing Eagle Ford Shale well count to 117 (82.0 net) wells. Seven wells are in the process of being completed or awaiting completion and four wells are being drilled on the acreage being acquired.
Estimated net oil and gas production for the acquired assets was approximately 3,200 BOEPD during February 2013, which would have brought our total February 2013 production to approximately 19,500 BOEPD and our Eagle Ford Shale production in February 2013 to approximately 10,900 BOEPD.