Eagle Ford Shale pure-play Penn Virginia Corp. has agreed to buy Lonestar Resources Inc. in a deal that would expand its South Texas leasehold.

Penn Virginia-Lonestar

Once completed, the Houston-based independent would control 143,000 net acres within the Eagle Ford, including Lonestar’s 53,000 net acres. Total sales volumes would be around 38,000 boe/d, up by about 13,000. 

Including Lonestar’s estimated 250 gross well locations, Penn Virginia would have 750 combined well locations. Proved reserves would climb to 219 million boe from 137 million boe. 

“The benefits of basin consolidation are very compelling, and we strongly believe this is a value-creating opportunity for both companies,” Penn Virginia CEO Darrin Henke said. 

The proposed merger is valued at around $370 million. Penn...