Penn Virginia Corporation Provides Oil and Gas Operational Update

--Six Percent Increase in Production over Prior Year Quarter

--Plans to Exit Gulf Coast in Fourth Quarter of 2009

Penn Virginia Corporation (NYSE:PVA) today provided an update of its oil
and gas operational activities, including third quarter 2009 results and
full-year 2009 and preliminary full-year 2010 guidance.

Highlights

Oil and gas segment operational results during the third quarter of 2009
included the following:

--
Quarterly oil and gas production of 134.9 million cubic feet of
natural gas equivalent (MMcfe) per day, or 12.4 billion cubic feet of
natural gas equivalent (Bcfe), representing production growth of six
percent from 127.1 MMcfe per day, or 11.7 Bcfe, in the third quarter
of 2008 (nine percent less than 148.9 MMcfe per day, or 13.6 Bcfe,
produced in the second quarter of 2009);

--
Oil and gas capital expenditures of approximately $16 million,
including approximately $8 million for drilling and completion
activities;

--
Two (0.8 net) Granite Wash wells drilled, one of which was successful
and the other of which is waiting on completion; and

--
Initiated the process of selling our Gulf Coast properties and expect
to complete a transaction during the fourth quarter of 2009. In
connection with this divestiture, we incurred a non-cash impairment
charge on proved properties held for sale of $87.9 million in the
third quarter.

Full-Year 2009 and Preliminary 2010 Guidance Update

Full-year 2009 guidance updates are as follows:

--
Production guidance of approximately 136 to 140 MMcfe per day, or 49.5
to 51.0 Bcfe, an increase of 1.0 to 1.5 Bcfe over previous guidance
due to better than expected third quarter volumes. This production
guidance range represents production growth of six to nine percent
over 2008 production of approximately 128 MMcfe per day, or 46.9 Bcfe.
Based on the first nine months' production of 39.7 Bcfe, we estimate
fourth quarter 2009 production to be in the range of approximately 107
to 123 MMcfe per day, or 9.8 to 11.3 Bcfe. The expected sequential
decrease in production is due to natural production declines and the
expected sale of the Gulf Coast assets; and

--
Oil and gas capital expenditures guidance of $216.0 to $228.7 million,
which is $48.7 to $51.0 million higher than the previous guidance
range. The increase in guidance is primarily due to the resumption of
PVA-operated drilling in the Lower Bossier (Haynesville) Shale in East
Texas and an expanded leasehold acquisition effort in the Marcellus
Shale, Granite Wash and Lower Bossier Shale.

As a result of the sale of non-core assets and other financing
transactions during 2009, we expect to have over $400 million of
available liquidity in the form of cash and equivalents and revolver
availability as we enter 2010. Assuming 2010 oil and gas capital
expenditures are between $300 and $400 million, or approximately 35 to
80 percent higher than the mid-point of revised 2009 capital
expenditures guidance, full-year 2010 production is estimated to be
approximately 130 to 140 MMcfe per day, or approximately 47 to 51 Bcfe.
This 2010 production guidance range, which reflects the divestiture of
our Gulf Coast assets, is approximately five to 14 percent higher than
2009 production guidance, excluding 2009 Gulf Coast production. In
December 2009, we will announce our approved 2010 oil and gas capital
expenditures budget and production guidance range, along with additional
details regarding expected 2010 activities.

Management Comment

A. James Dearlove, President and Chief Executive Officer, said, "We are
pleased to have recommenced PVA-operated drilling and look forward to a
more active drilling program in 2010 in our core Lower Bossier Shale,
Granite Wash and Selma Chalk plays, which should allow us to resume our
production growth profile. In addition, we have increased our 2009
capital expenditures outlook by approximately $25 million to fund an
expanded Marcellus Shale leasing effort.

"Natural gas prices have begun to show modest signs of improvement in
recent weeks and the prospect of a recovery of gas prices in 2010
appears to be increasing. In addition, positive results from Granite
Wash and Lower Bossier Shale drilling, along with our improved financial
liquidity, have given us the confidence to resume drilling. As a result,
we have provided preliminary 2010 capital expenditures guidance of $300
to $400 million and production growth of five to 14 percent."

Third Quarter 2009 Operational Results

Production in the third quarter of 2009 was 134.9 MMcfe per day, or 12.4
Bcfe, an increase of six percent over the 127.1 MMcfe per day, or 11.7
Bcfe, in the third quarter of 2008. Production in the third quarter of
2009 was nine percent lower than 148.9 MMcfe per day, or 13.6 Bcfe, in
the second quarter of 2009 due to natural production declines and
significantly reduced drilling activity.

The realized natural gas price, prior to the impact of derivatives,
during the third quarter of 2009 was $3.45 per thousand cubic feet
(Mcf), 66 percent lower than the $10.14 per Mcf natural gas price in the
third quarter of 2008 and one percent lower than the $3.49 per Mcf
natural gas price in the second quarter of 2009. The realized oil price,
prior to the impact of derivatives, during the third quarter of 2009 was
$65.64 per barrel, 44 percent lower than the $117.64 per barrel oil
price in the third quarter of 2008 and 19 percent higher than the $55.00
per barrel oil price in the second quarter of 2009. The realized natural
gas liquids (NGLs) price during the third quarter of 2009 was $30.29 per
barrel, 55 percent lower than the $66.76 per barrel NGLs price in the
third quarter of 2008 and two percent lower than the $30.97 per barrel
NGLs price in the second quarter of 2009. Adjusting for oil and gas
hedges, the effective natural gas price during the third quarter of 2009
was $4.90 per Mcf and the effective oil price was $70.39 per barrel, or
increases of $1.45 per Mcf and $4.75 per barrel, respectively.

During the third quarter of 2009, unit cash operating expenses decreased
to $1.82 per thousand cubic feet of natural gas equivalent (Mcfe) from
$2.29 per Mcfe in the third quarter of 2008 and were relatively flat as
compared to the $1.79 per Mcfe in the second quarter of 2009. We plan to
release full financial results and additional 2009 guidance details in a
separate third quarter 2009 financial results press release on November
4, 2009.

Capital Expenditures

During the third quarter of 2009, oil and gas capital expenditures were
approximately $16 million, consisting of:

--
$9.0 million for drilling and completion activities, including two
(0.8 net) wells drilled during the quarter, one of which was
successful and the other of which is waiting on completion;

--
$0.9 million for the expansion of gathering systems and other
production facilities; and

--
$5.9 million for leasehold acquisition, seismic data and other
expenditures.

Full-year 2009 capital expenditures guidance has been increased to a
range of $216.0 to $228.7 million, excluding drilling rig standby
charges discussed below, from a range of $165.0 to $180.0 million
provided in previous guidance. Based on the approximate $144 million
spent during the first nine months of 2009, we estimate that we will
spend approximately $72 to $85 million for capital expenditures during
the fourth quarter of 2009, primarily for drilling, completions and
leasehold acquisition costs. We expect our drilling activity in the
fourth quarter 2009 to focus primarily on the resumed drilling of Lower
Bossier Shale wells in East Texas and the Granite Wash in the
Mid-Continent region, an expanded leasehold acquisition effort in the
Marcellus Shale, the Granite Wash and Lower Bossier Shale, and a
vertical test of the Marcellus Shale in Pennsylvania.

Operational Updates by Geographical Region

East Texas -- Production in the
third quarter of 2009 was 33.0 MMcfe per day, 19 percent lower than the
40.9 MMcfe per day produced in the third quarter of 2008 and 19 percent
lower than the 40.9 MMcfe per day produced in the second quarter of
2009. The year-over-year decrease in quarterly production was
attributable to discontinued drilling of Cotton Valley wells, offset in
part by increased production from the Lower Bossier Shale play. Lower
Bossier Shale production averaged 12.5 MMcfe per day during the third
quarter of 2009, a 336 percent increase over the 2.9 MMcfe per day
produced in the third quarter of 2008. The sequential decrease in
quarterly production was due to natural production declines in both the
Lower Bossier Shale and Cotton Valley as the result of the deferral of
drilling due to weak market conditions.

Due to the previously announced improved results of our last two Lower
Bossier Shale wells during the second quarter, we have decided to deploy
an operated drilling rig in the play during October and plan to add a
second operated rig in early November.

Mid-Continent -- During the third
quarter of 2009, we participated in two (0.8 net) non-operated Granite
Wash horizontal wells, one of which was successful and the other of
which is waiting on completion. Production in the third quarter of 2009
was 36.7 MMcfe per day, 110 percent higher than the 17.5 MMcfe per day
produced in the third quarter of 2008 and three percent lower than the
38.0 MMcfe per day produced in the second quarter of 2009. The
year-over-year increase was primarily attributable to a 793 percent
increase in Granite Wash production from 2.8 MMcfe per day in the third
quarter of 2008 to 24.6 MMcfe per day in the third quarter of 2009.
Granite Wash production was ten percent higher in the third quarter of
2009 as compared to the 22.7 MMcfe per day produced in the second
quarter of 2009, while daily production from other Mid-Continent plays
of 12.1 MMcfe per day was 21 percent lower than the 15.3 MMcfe per day
of second quarter production due to natural production declines.

Due to the strong results from the Granite Wash play and compelling
economics, in late October we deployed an operated rig to this play. In
addition, as previously announced, we continue to add to our acreage
position in the Granite Wash play and have expanded our position in two
additional Granite Wash prospects to increase our acreage position from
approximately 10,000 net acres at year-end 2008 to approximately 17,000
net acres currently, with a goal of reaching 20,000 net acres by
year-end 2009.

Mississippi -- Production in the
third quarter of 2009 was 20.4 MMcfe per day, two percent higher than
the 20.0 MMcfe per day produced in the third quarter of 2008 and 14
percent lower than the 23.6 MMcfe per day produced in the second quarter
of 2009. The year-over-year production increase was due to the growing
contributions from horizontal Selma Chalk wells, while the sequential
decrease in quarterly production was due to natural production declines.
We will continue to defer further drilling in this play until January
2010, when we expect to deploy two operated rigs into the play.

Appalachia -- Production in the
third quarter of 2009 was 31.3 MMcfe per day, two percent higher than
the 30.8 MMcfe per day produced in the third quarter of 2008 and three
percent less than the 32.2 MMcfe per day produced in the second quarter
of 2009. We plan to commence testing of our Marcellus Shale acreage in
Pennsylvania in the fourth quarter of 2009, with additional exploratory
drilling planned for 2010. In addition, we have increased 2009 capital
expenditures guidance by approximately $25 million to fund an enhanced
lease acquisition program in the Marcellus Shale.

Gulf Coast -- Production in the
third quarter of 2009 was 13.6 MMcfe per day, 24 percent lower than the
17.9 MMcfe per day produced in the third quarter of 2008 and five
percent lower than the 14.2 MMcfe per day produced in the second quarter
of 2009. These decreases were primarily due to natural production
declines from significant south Louisiana discoveries at Bayou Sale and
Bayou Postillion over the past two years.

As referenced above, we are currently in the process of divesting our
Gulf Coast properties and expect to close such a transaction during the
fourth quarter of 2009. During the third quarter of 2009, in connection
with the contemplated Gulf Coast divestiture, we incurred a non-cash
impairment charge on proved properties held for sale of $87.9 million.
The impairment charge reduces the carrying value of these assets to a
level that is in line with the expected proceeds from their sale.

Third Quarter 2009 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss
third quarter 2009 financial and operational results, is scheduled for
Thursday, November 5, 2009 at 3:00 p.m. ET. Prepared remarks by A. James
Dearlove, President and Chief Executive Officer, will be followed by a
question and answer period. Investors and analysts may participate via
phone by dialing 1-866-630-9986 five to ten minutes before the scheduled
start of the conference call and using the passcode 4836740, or via
webcast by logging on to our website at www.pennvirginia.com
at least 20 minutes prior to the scheduled start of the call to download
and install any necessary audio software. A telephonic replay will be
available approximately two hours after the call for two weeks by
dialing toll free 888-203-1112 (international: 719-457-0820) and using
the replay code 4836740. In addition, an on-demand replay of the webcast
will also be available for two weeks at PVG's or PVR's websites
beginning 24 hours after the webcast.

Penn Virginia Corporation (NYSE: PVA | Quote | Chart | News | PowerRating) is an independent natural gas
and oil company focused on the exploration, acquisition, development and
production of reserves in onshore regions of the U.S., including the
East Texas, Mississippi, the Mid-Continent region and the Appalachian
Basin. PVA also owns approximately 51 percent of Penn Virginia GP
Holdings, L.P. (NYSE: PVG), the owner of the general partner and the
largest unit holder of Penn Virginia Resource Partners, L.P. (NYSE:
PVR), a manager of coal and natural resource properties and related
assets and the operator of a midstream natural gas gathering and
processing business.

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. These risks, uncertainties and contingencies
include, but are not limited to, the following: the volatility of
commodity prices for natural gas, NGLs, and crude oil; our ability to
develop and replace oil and gas reserves and the price for which such
reserves can be acquired; the relationship between natural gas, NGL and
oil prices; the projected demand for and supply of natural gas, NGLs and
crude oil; the availability and costs of required drilling rigs,
production equipment and materials; our ability to obtain adequate
pipeline transportation capacity for our oil and gas production;
competition among producers in the oil and natural gas industry
generally and among natural gas midstream companies; the extent to which
the amount and quality of actual production of our oil and natural gas
differs from estimated proved reserves; whether the sale of our Gulf
Coast assets closes during the fourth quarter and the anticipated price;
operating risks, including unanticipated geological problems, incidental
to our business; the occurrence of unusual weather or operating
conditions, including force majeure events; delays in anticipated
start-up dates of our oil and natural gas production; environmental
risks affecting the drilling and producing of oil and gas wells; the
timing of receipt of necessary governmental permits by us; hedging
results; accidents; changes in governmental regulation or enforcement
practices, especially with respect to environmental, health and safety
matters; risks and uncertainties relating to general domestic and
international economic conditions (including inflation, interest rates
and financial and credit markets) and political conditions (including
the impact of potential terrorist attacks); and the other risks set
forth in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2008.

Additional information concerning these and other factors can be found
in our press releases and public periodic filings with the Securities
and Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2008. 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.

SOURCE: Penn Virginia Corporation

Penn Virginia Corporation 
James W. Dean 
Vice President, Investor Relations 
Ph: 610-687-7531 
Fax: 610-687-3688 
invest@pennvirginia.com

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