Maybe the partner (a major) thought the LaVaca acreage wasn't worth bothering with any more, but for PVA this means more production in a highly desirable area.
PVA is not very adept at "spinning" news so the release sound a bit negative.
What kind of production is meaningful to a major is not the same as what is meaningful to a smaller company like PVA.
Magnum Hunter Resources Corp. (MHR) said it may have “second thoughts” about selling assets in the Eagle Ford shale after getting results from two wells.
The Rhino Hunter No. 1 and Zebra Hunter No. 1 wells, both in Lavaca County, Texas, “are by far our best producers since we initiated drilling operations in this play in 2010,” Gary Evans, chairman and chief executive officer of Magnum Hunter, said in a statement today.
“With these consistent results, and the significant reserve additions we are seeing from new wells that are now exceeding 500,000 barrels of oil equivalent per well, our management and board may very well have second thoughts about our decision to possibly completely divest these properties at this time,” Evans said.
The CEO said last month that the company was shopping the assets and may have “some sort of understanding” on a sale of its 26,000 acres in the Eagle Ford by the end of the year
Looks like the tax selling finally ended after lunch today and some nibbling kicked in, considerably later than the mid-month prediction stuartcreekfarms defended but better late than never. An article in Barron's internet edition on MHR probably helped us. We show better than MHR on an estimated price to cashflow basis for 2013.