Re: Penn Virginia Corporation Commo(NYSE: PVA )
Penn Virginia Corporation Announces Initial Drilling Success and Leasehold Acquisition in the Eagle Ford Shale
First Eagle Ford Well Has Initial Production Rate of 1,250 BOE Per Day
finance.yahoo.com
From the Pritchard report:
PVA – First Eagle Ford well a winner Gonzales County well IPd at 1,250 Boe/d (88% oil) Q4 production 13.1 Bcfe beat our 12.8 Bcfe forecast Adj. CFPS $0.73 beat our $0.67 but below consensus of $0.76
PVA secures more Eagle-Ford acreage:
From the article above:"...PVA also announced that it has acquired approximately 4,100 additional net Eagle Ford Shale acres in Gonzales County, Texas for $14.5 million in cash. We expect that our partner in our initial Eagle Ford Shale acquisition will purchase up to a one-sixth working interest, or approximately 700 net acres, in the newly acquired acreage. The acquisition brings our net Eagle Ford Shale acreage, all believed to be in the volatile oil window, to approximately 10,900 net acres..."
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PVA is a holding I continue to accumulate.
finance.yahoo.com
They are still considered a small Cap with an EV of $1 Billion. They show a BV of $22.08/share, 25% below the current market price. The company has acquired Eagle-Ford acreage at an average cost of $4,000/acre well below recent sales in the area (eg. CNOOC).
The company also owns a partnership interest in midstream & NG gathering operations in Oklahoma and Texas (ie. PVG). This asset allows them to collect a steady growing income stream which they use to pay shareholders a nice dividend.
This company fits my conservative "value" model for an E&P company w/o the risk of a micro cap and/or small cap start-up. Also, no foreign political risk as all of their holdings and development are in the U.S..
My initial fair value target is $38.00/share - $48.00/share. A lot depends on future price of Oil, NG & Coal and their success in their new well development.
This is a company that has been around since 1882 and owns a lot of land assets (including lumber & mineral rights) at a very low cost which is not reflected at market prices in their balance sheet.
EKS |
