Eagle Ford Shale pure-play Penn Virginia Corp. plans to maintain its current two-rig program through 2021 to grow production after it temporarily suspended drilling last year because of the Covid-19 pandemic.

Penn Virginia

During a conference call Wednesday to discuss 4Q2020 results, CEO Darrin Henke said continuing with two rigs “makes sense” in light of the recent rise in oil prices. The company is primarily an oil producer, with natural gas making up only 10% of its 4Q2020 sales volumes and natural gas liquids (NGL) making up 12%.

“We’re going to pay close attention obviously to the service cost environment, and if we see significant inflation or anything that concerns us around being able to deliver the returns we’re talking about, we would consider maybe slowing down the program if...