Penn Virginia (PVA) issued an operational update on its oil and gas exploration and development activities on properties prospective for the Granite Wash.
Penn Virginia drilled 11 gross or 5 net wells into the Granite Wash formation during the fourth quarter of 2010. The company reported 10 gross or 3.9 net well completions in the South Clinton field. Initial production rates ranged between 5.2 and 14.9 million cubic feet equivalent per day, with an average of 9 million cubic feet equivalent per day. Penn Virginia said that this production was composed of 45% of oil and 20% to 25% natural gas liquids.
Penn Virginia reported that wells drilled and completed into the Powell and East Sayre prospects were marginal and non productive due to high water saturation. The company intends to direct all of its 2011 Granite Wash activity into the South Clinton field, where it plans to drill 23 gross or 7.1 net wells.