Penn Virginia (PVA) has entered into a one-year agreement with C&J Energy Services, a private service contractor, to provide hydraulic fracturing services in PVA’s East Texas and Mid-Continent regions. The agreement will commence in the third quarter of 2010.
Based in Corpus Christi, Texas, C&J Energy Services will provide high-pressure hydraulic fracturing services for one year, primarily in connection with the Lower Bossier (Haynesville) Shale and Cotton Valley horizontal plays in the East Texas region and the Granite Wash horizontal play in the Mid-Continent region.
According to the company, these services have been in short supply for the industry recently and this has led to delays in PVA’s completions.
James Dearlove, president and CEO of Penn Virginia, said: “We are pleased to announce this fracturing agreement with C&J, who will provide a high-quality fleet of equipment and services to Penn Virginia. As discussed in our first quarter 2010 update, production in the first quarter was affected by equipment-related delays in well completions in East Texas and the Granite Wash play and such effects are expected to continue into the second quarter.
“With the signing of this agreement, we will have reliable access to the equipment and services we need to complete the backlog of wells drilled, together with wells to be drilled in the second half of 2010 and through the first half of 2011.”