Penn Virginia reported a new 2017 & 2018 production guidance to reflect the acquisition from Devon in the Eagle Ford.
For 2017, Penn intends to produce between 10.6 Mboe/d and 11.2 Mboe/d, rising from the previous guidance range between 10.0 Mboe/d and 11.0 Mboe/d. Additionally, the Company reported 2017 capital spending between $140 million and $160 million, rising from the previous budget between $120 million and $140 million.
The 2017 budget will be funded with cash flow from operations and borrowings under the credit facility. Upon completion of purchase of Devon’s assets, Penn Virginia will shift one of their current drilling rigs to develop the acreage being acquired from Devon Energy. The 19,600 net acres being added include an inventory of 91 gross locations, of which 43 have been identified for extended reach laterals.