RADNOR, Pa., May 28, 2013 (GLOBE NEWSWIRE) -- Penn Virginia Corporation (NYSE:PVA) announced today that its bank group has voted unanimously to increase the borrowing base under PVA's senior secured credit facility from $275 million to $350 million. The 27 percent increase in the borrowing base is the direct result of PVA's recently announced acquisition of Eagle Ford Shale reserves for approximately $400 million, as well as continued success in its Eagle Ford Shale drilling program. Under the terms of the credit facility, which matures in September 2017, the bank group re-determines the borrowing base semi-annually utilizing the banks' estimates of reserves and future oil and gas prices.
H. Baird Whitehead, President and Chief Executive Officer stated, "We are very pleased to announce the increase in our borrowing base to $350 million, at the upper end of our previously reported expectation. The increased borrowing base further enhances our liquidity position and positions us to execute on our oil growth strategy at very attractive borrowing rates."
The bank group is comprised of ten banks, led by Well Fargo Bank, N.A., which continues to serve as administrative agent of the credit facility.
Penn Virginia Corporation (NYSE:PVA) is an independent oil and gas company engaged primarily in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in Appalachia. For more information, please visit our website at www.pennvirginia.com.
Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements.
Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission. Many of the factors that will determine our future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: James W. Dean Vice President, Corporate Development Ph: (610) 687-7531 Fax: (610) 687-3688 E-Mail: firstname.lastname@example.org
Source:Penn Virginia Corporation