Penn Virginia, a company engaged in the exploration, development and production of crude oil and natural gas, has closed an acquisition for $44.9 million in east Texas targeting the Cotton Valley.

The highlights of the transaction include the estimated proved reserves of 21.9 billion cubic feet of natural gas equivalent (bcfe), of which 2.4 bcfe are proved developed reserves, and approximately 104 bcfe of estimated probable and possible reserves.

Highlights also include approximately 4,800 gross (4,700 net) acres located adjacent to Penn Virginia’s North Carthage field in Harrison and Panola counties, Texas with approximately 110 potential Cotton Valley locations. Meanwhile, additional upsides include 20-acre down-spacing in the Cotton Valley and potential from the shallower Travis Peak formation.

James Dearlove, president and CEO, said: Located adjacent to some of our better Cotton Valley acreage, this acquisition has attractive transaction economics and provides us with significant exposure to potential upside opportunities. Including the Woodlawn Field acquisition announced in July, we have recently acquired 41 bcfe of proved reserves and approximately 114 bcfe of estimated probable and possible reserves in our core Cotton Valley area for approximately $67 million.