Penn Virginia Corp. (PVA) has agreed to sell its Mississippi assets to an undisclosed buyer for gross cash proceeds of $72.7 million. The sale is expected to close in July, subject to customary conditions. The effective date of the sale is April 1, 2014. The properties, which target the Selma Chalk with horizontal wells, had net production of about 11.9 MMcfe/d during the first quarter, almost 100% of which was natural gas. As a result of the divestiture, the company’s 2014 production will decrease by about 1.9 Bcfe. Estimated proved reserves associated with the divested properties at year-end were 85.3 Bcfe, 69% of which was proved developed and about 100% of which was natural gas. During the first quarter, PVA set a quarterly oil production record, thanks to a 15% increase in output from its Eagle Ford Shale operations as it continued to grow and delineate its South Texas acreage (see Shale Daily, May 14).
Axip Energy Services LP, formerly Valerus Compression Services LP, announced Monday that it plans to sell its international services business to Enerflex Ltd. for $430 million. The transaction, which is subject to standard closing adjustments and regulatory and other conditions, is expected to close in late 2Q2014 or early 3Q2014. Axip’s international contract operations and about 170 employees will be transferred to Enerflex. Axip intends to use proceeds from the sale toward its domestic contract services businesses and pay down debt. Axip CEO Pete Lane said the transaction “allows us to focus on the core business of Axip in the rapidly expanding U.S. shale plays.”
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