Friday, May 15, 2009

Penn Virginia: Update

Penn Virginia was one of the first companies to announce a successful well in the Haynesville Shale last year, but they have been relatively quiet this year. The company has 59,000 acres under lease, with a focus on East Texas, specifically Harrison County.

To date PV has drilled six wells, but one of them (Agnor #6H) was unsuccessful, a rare miss in the Haynesville Play. PV is seeing 4 to 6 MMcf/day initial production on wells, but it notes that it has restricted flows on the wells. Unfortunately they don't provide much juicy well detail.

The company has definitely been learning as it goes along and is seeing improved economics and efficiencies. PV's most recent well, Gail Furrh #8-H, was completed in 60 days, compared to the previous average of 81, and it came in around $7 million, down from an $8.4 million average.

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