Penn Virginia Corporation Provides Operational Update

Penn Virginia Corporation (NYSE:PVA) today provided an update of its oil
and gas operations, including second quarter 2010 results.

Second Quarter 2010 Highlights

Operational results for the three months ended June 30, 2010 included
the following:

• 
  Production of 10.5 billion cubic feet of natural gas equivalent
  (Bcfe), or 115.1 million cubic feet of natural gas equivalent (MMcfe)
  per day. Equipment-related delays in well completions in the
  Haynesville Shale and Granite Wash plays during the early part of the
  second quarter of 2010 led to an approximate 0.7 Bcfe shortfall in
  production compared to our expectations for the second quarter;
  
• 
  Continued strong initial production (IP) results from our Granite Wash
  drilling program, with the last seven completions having IP rates
  ranging between 11.1 and 19.2 MMcfe per day (average of 15.1  MMcfe per
  day), including oil and estimated processed natural gas liquids (NGLs)
  pursuant to a new processing agreement with our midstream provider;
  
• 
  Improved initial results from our Haynesville Shale drilling program,
  with the last four completions, excluding one well that had mechanical
  problems during completion, having IP rates ranging between 10.0 and
  15.3 million cubic feet (MMcf) per day (average of 11.9 MMcf per day);
  
• 
  Solid initial results from our horizontal Cotton Valley drilling
  program, with the first two completions having IP rates of 3.0 and 4.9
  MMcfe per day, including oil and estimated processed NGLs; and
  
• 
  Average daily production of 133.0 MMcfe per day in June 2010, the
  fourth best production month in our history, pro forma to exclude Gulf
  Coast assets sold in January 2010.
  

Production

As shown in the table below, production in the second quarter of 2010
was 10.5 Bcfe, or 115.1 MMcfe per day, as compared to 13.6 Bcfe, or
148.9 MMcfe per day, in the second quarter of 2009 and 10.3 Bcfe, or
114.9 MMcfe per day, in the first quarter of 2010. Adjusted for the
divestiture of our Gulf Coast assets in January 2010, production in the
second quarter of 2010 was 15  percent less than the pro forma 12.3  Bcfe,
or 134.7 MMcfe per day, in the prior year quarter and five percent more
than the pro forma 10.0 Bcfe, or 111.6 MMcfe per day, in the first
quarter of 2010.

⁽¹⁾ We sold our Gulf Coast assets in January 2010.

⁽²⁾
Pro forma to exclude divested Gulf Coast assets.

Note
- Numbers may not add due to rounding.

The year-over-year decrease in pro forma production was due to natural
production declines, the effects of significantly reduced drilling
activity in the latter part of 2009 and, to a lesser extent, by well
completion delays due to difficulty in obtaining stimulation equipment
in East Texas and in the Granite Wash. Production in the second quarter
of 2010 was less than the previously announced guidance range of 10.7 to
11.5 Bcfe due primarily to (i) completion delays in East Texas resulting
in two Haynesville Shale and one horizontal Cotton Valley well being
turned into line later than anticipated (0.4 Bcfe impact) and (ii)
completion delays for non-operated wells in the Granite Wash (0.3 Bcfe
impact).

Most of the impact of the completion delays occurred during April and
early May, with production increasing significantly by June to average
133.0 MMcfe per day, the fourth best pro forma production month in our
history. In May, we announced a fracturing services agreement that went
into effect in July 2010 and has addressed completion delays for our
operated wells in East Texas. In addition, in June 2010 we signed a
fee-based processing agreement with our midstream provider in the
Granite Wash pursuant to which we will report increased NGL volumes in
our production and revenue streams going forward.

Capital Expenditures

During the second quarter, oil and gas capital expenditures were
approximately $117 million, consisting of:

• 
  $76 million for drilling and completion activities;
  
• 
  $30 million for leasehold acquisition, including approximately $20
  million of previously announced acquisitions in the Marcellus Shale;
  and
  
• 
  $11 million for seismic, facilities and other expenditures.
  

Operational Update

Mid-Continent ? During the second
quarter of 2010, our joint venture partner, Chesapeake Energy Corp.
(NYSE: CHK), and we drilled 12 (5.6 net) Granite Wash horizontal wells,
nine (4.3 net) of which have been completed. During the second quarter,
10 (3.5 net) wells were completed. To date in the third quarter, four
(2.2 net) wells have been completed and seven (3.8 net) wells are
waiting on completion.

Two (1.0 net) of the second quarter completions were PVA-operated wells
(Debra Jean #2-6H and Gudgel #1-6H) and had IP rates of 19.2 and 11.1
MMcfe per day, respectively. In addition, six (2.3 net) non-operated
wells were recently completed with IP rates of 1.4, 12.3, 16.5, 16.7,
11.6 and 18.1 MMcfe per day.

We are currently operating four drilling rigs in the Granite Wash play
in Oklahoma, with two rigs deployed in our area of joint operations with
CHK and the other two rigs dedicated to testing our Mountain View and
East Sayre exploration prospects. CHK is currently operating four
Granite Wash rigs within our area of joint operations. Despite continued
delays in completions, second quarter 2010 production from the Granite
Wash increased to 28.9 MMcfe per day, up 28 percent from 22.7 MMcfe per
day in the second quarter of 2009 and up 15 percent from the first
quarter of 2010. At present, our acreage position in the Granite Wash is
approximately 30,000 net acres, and we expect to spend up to $23 million
in 2010 to add acreage in the Anadarko Basin.

East Texas ? During the second
quarter of 2010, we drilled two (1.8 net) Haynesville Shale wells, one
(0.8 net) of which has been completed, and we drilled two (1.9  net)
Cotton Valley horizontal wells, both of which have been completed.
During the second quarter, we completed two (1.8 net) Haynesville Shale
wells. To date in the third quarter, three (2.8 net) Haynesville Shale
wells have been completed and a single (1.0  net) Haynesville Shale well
is waiting on completion. As discussed above, since we resumed drilling
late last year and prior to putting our fracturing services agreement in
place, we faced delays in completions that resulted in less than
anticipated production from East Texas in the first half of 2010.

The last five Haynesville Shale wells completed included the Brown #6-H
(100 percent working interest or WI), the Fults #2-H (79 percent WI),
the Hendry #1-H (77 percent WI), the Timmons #3-H (100 percent WI) and
the J&R Tiller #1-H (100 percent WI), which had IP rates of 10.4, 15.3,
2.4, 8.9 and 10.0 MMcf per day, respectively. The Hendry #1-H
experienced a casing problem that prevented completion of the full
lateral length, with production only from five intervals that were
completed before the mechanical problem developed. In addition, we
completed two (1.9 net) Cotton Valley horizontal wells, with the Gibson
#3-H (100 percent WI) and the McClendon #6-H (90 percent WI) having IP
rates of 4.9 and 3.0 MMcfe per day, respectively.

The Brown #6-H and Fults #2-H were the first two Haynesville Shale wells
completed in 2010. The 30-day rates for these wells averaged 7.4 and
11.2 MMcf per day and the number of frac stages were 15 and 24,
respectively. Up until the completion of these two wells, the maximum
number of frac stages had been 10 for the two best wells we had
previously drilled. The Brown and Fults wells, now with almost 60 days
of production, have current daily production rates exceeding the
performance of these previous best wells at the same production date by
approximately 75 percent. We believe this improvement is attributable to
the increased number of frac stages, as well as higher back-pressures
being held on the newer wells. Despite these promising results thus far,
we have decided to defer drilling in the Haynesville Shale for the
remainder of the year to evaluate the longer-term production results and
economics of these recent wells.

At present, we are operating two drilling rigs in East Texas, both
targeting the horizontal Cotton Valley, primarily due to the NGL and oil
content as well as our desire to continue to test this play type, and we
expect production to increase in East Texas during the remainder of the
year.

Mississippi ? During the second
quarter of 2010, we drilled four (3.9 net) Selma Chalk horizontal wells,
all of which have been completed. The last five Selma Chalk wells
completed included the Caruthers #11-3-420H (96 percent WI), the
Caruthers-Kemp #11-3-421H (100 percent WI), the Caruthers-Morgan
#11-1-411H (99 percent WI), the Caruthers #11-1-423H (96 percent WI) and
the Walker Lands #35-16-422H (100  percent WI), with IP rates of 1.4,
1.4, 1.4, 1.7 and 1.0 MMcf per day, respectively. We are currently
operating one drilling rig in Mississippi and expect production to
increase during the remainder of the year.

Appalachia / Marcellus Shale ?
During the second quarter of 2010, we did not drill any wells in
Appalachia, but we expect to resume drilling in the Marcellus Shale in
the late third quarter to early fourth quarter. We anticipate drilling
up to two horizontal Marcellus Shale wells during 2010. In addition, we
continue to add to our acreage position in the Marcellus Shale,
increasing our acreage to approximately 58,000 net acres. Overall, in
2010 we expect to spend up to $63  million adding leasehold in the
Marcellus Shale.

Second Quarter 2010 Financial and Operational Results Conference Call