Penn Virginia acquired Eagle Ford assets located primarily in Lavaca County, TX for $205 million in cash from Devon Energy.

The company anticipates the acquisition will close on or before September 30, 2017, with an effective date of March 1, 2017. Penn Virginia expects the purchase price will be adjusted downwards by approximately $15 million to reflect estimated net cash flows from the effective date to closing, resulting in a net purchase price of approximately $190 million.

The acquisition will be funded with new $150 million of committed debt financing and borrowings under the company’s credit facility. According to a related 8-K filing, the company amended its credit agreement on June 27, 2017 with Wells Fargo as administrative agent and Citibank and Huntington National Bank as new lenders. At that time the borrowing base was increased from $129 million to $200 million.

In addition, Penn Virginia is in discussions with its bank lending group to further amend and increase its reserve-based credit facility beyond the current borrowing base of $200 million.

Penn Virginia is an independent oil and gas company engaged in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the U.S., with a primary focus in the Eagle Ford Shale in south Texas.