Penn Virginia Corporation Announces Year-End 2012 Proved Reserves and Provides Operational Update

Penn Virginia Corporation (NYSE: PVA) today announced proved oil and gas
reserves and provided an update of its operations, including full-year
and fourth quarter 2012 operational results.

Proved Reserves and Operational Update Highlights

Proved reserve data included the following:

• 
  Proved oil and gas reserves were 113.5 million barrels of oil
  equivalent (MMBOE) at year-end 2012, compared to 130.3 ?MMBOE at
  year-end 2011, pro forma to exclude 16.9 MMBOE of Appalachian reserves
  sold in July 2012
  
  
  • 
    Proved oil and natural gas liquids (NGL) reserves increased 28
    percent to 45.5 MMBOE, or 40 percent of total proved reserves,
    from 35.6 MMBOE, or 24 percent of total proved reserves, at
    year-end 2011
    
  • 
    Eagle Ford Shale proved reserves increased by 161 percent from
    10.0 MMBOE at year-end 2011 to 26.1 ?MMBOE at year-end 2012
    
  • 
    Pro forma natural gas proved reserves decreased by 161 billion
    cubic feet (Bcf) (26.9 ?MMBOE), or 28 ?percent, primarily due to low
    gas prices
    
• 
  The pre-tax present value of estimated future net cash flows from
  proved reserves, discounted at 10 percent, (PV-10) was $692 ?million
  
  
  • 
    The PV-10 value, excluding all proved undeveloped (PUD) wells with
    negative PV-10 value, was $839 million
    
  • 
    The PV-10 value of proved developed reserves was $628 million
    
• 
  As determined by our third party reserve engineering firm, the average
  gross estimated ultimate recovery (EUR) for Eagle Ford Shale PUD wells
  with full-length laterals in Gonzales County was approximately 400
  thousand barrels of oil equivalent (MBOE) and in Lavaca County was
  approximately 500 ?MBOE
  

Operational results for the fourth quarter of 2012, with comparisons to
the third quarter 2012 where applicable, included the following:

• 
  Production of 1.4 MMBOE, or 15,444 barrels of oil equivalent (BOE) per
  day (BOEPD), compared to 1.4 MMBOE, or 15,245 BOEPD, pro forma to
  exclude production from Appalachian assets sold in July 2012
  
  
  • 
    Eagle Ford Shale net production was approximately 6,900 BOEPD in
    the fourth quarter of 2012, compared to approximately 6,300 BOEPD
    
  • 
    Fourth quarter and full-year 2012 production exceeded the upper
    end of previously provided guidance
    
  • 
    Oil and NGL production was 56 percent of quarterly production,
    compared to 52 percent
    
• 
  Currently, we have 66 ?(55.1 ?net) Eagle Ford Shale wells on line, with
  one (0.9 net) well waiting on completion, two wells being drilled in
  the Eagle Ford Shale in Lavaca County and one horizontal test well
  being drilled in the Pearsall Shale in Gonzales County
  
• 
  The average peak gross production rate per well for the 59 wells we
  have completed to date with full-length laterals was 972 ?BOEPD. The
  initial 30-day average gross production rate for the 55 of these 59
  wells with a 30-day production history was 651 ?BOEPD
  
  
  • 
    The wells drilled and completed to date in Gonzales County with
    full-length laterals had an average initial gross production rate
    of 984 BOEPD and an initial 30-day average gross production rate
    of 649 BOEPD
    
  • 
    The wells drilled and completed to date in Lavaca County with
    full-length laterals had an average initial gross production rate
    of 926 BOEPD and an initial 30-day average gross production rate
    of 660 BOEPD
    
  • 
    The higher average 30-day initial rate in Lavaca County, along
    with the higher reservoir pressure, is consistent with higher
    expected EURs as compared to the EURs expected in Gonzales County
    
• 
  Currently, we have approximately 40,000 gross (approximately 32,000
  net) acres in the Eagle Ford Shale
  
  
  • 
    We increased our net acreage by approximately 2,000 net acres
    since late October 2012, at a cost of approximately $4.9 ?million
    

Fourth Quarter 2012 Operational Results

Pricing

Our preliminary fourth quarter 2012 realized oil price was $99.30 per
barrel, compared to $99.45 ?per barrel price in the third quarter of
2012. Our preliminary fourth quarter 2012 realized NGL price was $32.40
per barrel, compared to $32.94 per barrel price in the third quarter of
2012. Our preliminary fourth quarter 2012 realized natural gas price was
$3.41 per thousand cubic feet (Mcf), compared to $2.72 per Mcf price in
the third quarter of 2012. Adjusting for oil and gas hedges, our
preliminary fourth quarter 2012 effective oil price was $106.40 ?per
barrel and our effective natural gas price was $3.83 per Mcf, or
increases of $7.10 per barrel and $0.42 per Mcf over the realized prices.

Production

The production in the fourth quarter of 2012 and full-year 2012 exceeded
the upper end of our previously provided guidance. As shown in the table
above, on a pro forma basis to exclude production from assets sold in
2011 and 2012, production in the fourth quarter of 2012 was 1.4 MMBOE,
or 15,444 BOEPD, compared to 1.4 MMBOE, or 15,671 ?BOEPD, in the prior
year quarter and 1.4 MMBOE, or 15,245 BOEPD, in the third quarter of
2012. As a percentage of total equivalent production, oil and NGL
volumes were 56 ?percent in the fourth quarter of 2012, compared to 37
percent in the prior year quarter and 52 percent in the third quarter of
2012.

As shown in the table above, on a pro forma basis to exclude production
from assets sold in 2010, 2011 and 2012, production in 2012 was 5.8
MMBOE, or 15,776 BOEPD, compared to 5.9 MMBOE, or 16,157 BOEPD in 2011,
and 5.5 ?MMBOE, or 15,176 BOEPD, in 2010. The slight decrease from 2011
to 2012 was due to natural gas production declines associated with
discontinued natural gas drilling, largely offset by increased crude oil
production from the Eagle Ford Shale.

Proved Reserves

As set forth in the table below, proved reserves were 113.5 MMBOE at
year-end 2012, as compared to 130.3 MMBOE at year-end 2011, pro forma to
exclude 16.9 ?MMBOE of Appalachian reserves sold in July 2012 (reported
proved reserves at year-2011 were 147.2 ?MMBOE). The 13 percent decrease
in pro forma proved reserves was due to a 161 Bcf (26.9 ?MMBOE), or
28 ?percent, decrease in natural gas proved reserves, partially offset by
a 10.0 ?MMBOE, or 28 percent, increase in oil and natural gas liquid
(NGL) proved reserves. In the Eagle Ford Shale play, proved reserves
increased by 16.1 MMBOE, or 161 ?percent, from 10.0 MMBOE at year-end
2011 to 26.1 MMBOE at year-end 2012.

The PV-10 value of the proved reserves at year-end 2012 was
approximately $692 million (see statement regarding non-GAAP measures
below). This PV-10 value was based on a Henry Hub (HH) price of $2.76
per million British thermal units (MMBtu) for natural gas and a West
Texas Intermediate (WTI) price of $94.71 per barrel for oil, each of
which represents the unweighted arithmetic average of the
first-day-of-the-month prices during the 12-month period ending on
December 31, 2012.

Excluding all PUD wells with negative PV-10 value, the PV-10 value for
our proved reserves was $839 million. The estimated year-end 2012 proved
reserves included proved developed reserves of 46.5 MMBOE, with a PV-10
value of $628 million, and PUD reserves of 66.5 MMBOE, with a PV-10
value of $64 million (excluding all PUD wells with negative PV-10 value,
the PV-10 value of PUD reserves was $211 million). During 2012, we added
18.3 MMBOE of proved reserves from extensions, discoveries, purchases
and other additions in the Eagle Ford Shale play.

For the 12-month period ended December 31, 2011, the average HH price
for natural gas was $4.12 per MMBtu and the average WTI price for oil
was $96.19 per barrel. As a result of the declines in natural gas and
NGL prices, together with the situation that we will not be able to
develop a portion of our PUD reserves within a five-year time period
required under the reserve rules of the Securities and Exchange
Commission (SEC), we had 28.7 ?MMBOE of negative revisions, in the Selma
Chalk, Marcellus Shale, Haynesville Shale, Cotton Valley and Granite
Wash plays.

Operational Update

Eagle Ford Shale

Net production from the Eagle Ford Shale was 6,872 BOEPD in the fourth
quarter of 2012, compared to 6,317 BOEPD in the third quarter of 2012.
During the fourth quarter of 2012, we drilled ten (9.0 net) operated
wells in the Eagle Ford Shale, all of which were successful. Since late
October, we have completed ten (9.0 net) Eagle Ford Shale wells. This
brings the total number of on-line wells to 66 ?(55.1 ?net), with one (0.9
net) well waiting on completion, two wells being drilled in the Eagle
Ford Shale and one horizontal exploratory well being drilled in the
Pearsall Shale in Gonzales County.

As previously disclosed, we have initiated the process and are actively
seeking a 40 percent working interest partner for our Lavaca County
acreage. We expect to have this process completed late in the first
quarter. In addition, beginning in 2013, we will initiate the use of pad
drilling, which we believe will decrease costs and improve fracture
efficiency.

Set forth below are the initial results and statistics for certain Eagle
Ford Shale wells drilled and completed to date.

Derivatives Update

To support our operating cash flows, we hedge a portion of our oil and
natural gas production at pre-determined prices or price ranges. Based
on hedges currently in place, as detailed in the table below, we have
hedged approximately 4,500 ?barrels of daily crude oil production at a
weighted average floor/swap price of $97.29 per barrel and 20 million
cubic feet of daily natural gas production in 2013 at a weighted average
floor/swap price of $3.76 per Mcf. The following table summarizes our
open hedge positions through swaps and collars as of January 28, 2013.

Non-GAAP Measure

PV-10 value is the estimated future net cash flows from estimated proved
reserves discounted at an annual rate of ten ?percent before giving
effect to income taxes. The standardized measure is the after-tax
estimated future cash flows from estimated proved reserves discounted at
an annual rate of 10 percent, determined in accordance with generally
accepted accounting principles (GAAP). We use PV-10 value as one measure
of the value of our estimated proved reserves and to compare relative
values of proved reserves among exploration and production companies
without regard to income taxes. We believe that securities analysts and
rating agencies use PV-10 value in similar ways. Our management believes
PV-10 value is a useful measure for comparison of proved reserve values
among companies because, unlike standardized measure, it excludes future
income taxes that often depend principally on the characteristics of the
owner of the reserves rather than on the nature, location and quality of
the reserves themselves. We cannot reconcile PV-10 value to the
standardized measure at this time because final income tax information
for 2012 is not yet available. The standardized measure will be provided
in our forthcoming Form 10-K for the year ended December, 31 2012 to be
filed with the SEC.

Fourth Quarter and Full-Year 2012 Financial and Operational Results
Conference Call

A conference call and webcast, during which management will discuss
fourth quarter and full-year 2012 financial and operational results, is
scheduled for Thursday, February 21, 2013 at 10:00 a.m. ET. Prepared
remarks by H. Baird Whitehead, 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 10 minutes
before the scheduled start of the conference call (use the passcode
7342669), or via webcast by logging on to our website, www.pennvirginia.com,
at least 15 minutes prior to the scheduled start of the call to download
and install any necessary audio software. A telephonic replay will be
available for two weeks beginning approximately 24 hours after the call.
The replay can be accessed by dialing toll free 888-203-1112
(international: 719-457-0820) and using the replay code 7342669. In
addition, an on-demand replay of the webcast will also be available for
two weeks at our website beginning approximately 24 hours after the
webcast.

Penn Virginia Corporation (NYSE: PVA) is an independent oil and gas
company engaged primarily in the development, exploration and production
of oil and natural gas in various domestic onshore regions, including
Texas, Oklahoma, Mississippi and Pennsylvania.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. These risks, uncertainties and contingencies
include, but are not limited to, the following: the volatility of
commodity prices for oil, NGLs and natural gas; our ability to develop,
explore for, acquire and replace oil and gas reserves and sustain
production; our ability to generate profits or achieve targeted reserves
in our development and exploratory drilling and well operations; any
impairments, write-downs or write-offs of our reserves or assets; the
projected demand for and supply of oil, NGLs and natural gas; reductions
in the borrowing base under our revolving credit facility; our ability
to contract for drilling rigs, supplies and services at reasonable
costs; our ability to obtain adequate pipeline transportation capacity
for our oil and gas production at reasonable cost and to sell the
production at, or at reasonable discounts to, market prices; the
uncertainties inherent in projecting future rates of production for our
wells and the extent to which actual production differs from estimated
proved oil and gas reserves; drilling and operating risks; our ability
to compete effectively against other independent and major oil and
natural gas companies; our ability to successfully monetize select
assets and repay our debt; leasehold terms expiring before production
can be established; environmental liabilities that are not covered by an
effective indemnity or insurance; the timing of receipt of necessary
regulatory permits; the effect of commodity and financial derivative
arrangements; our ability to maintain adequate financial liquidity and
to access adequate levels of capital on reasonable terms; the occurrence
of unusual weather or operating conditions, including force majeure
events; our ability to retain or attract senior management and key
technical employees; counterparty risk related to their ability to meet
their future obligations; changes in governmental regulations or
enforcement practices, especially with respect to environmental, health
and safety matters; uncertainties relating to general domestic and
international economic and political conditions; and other risks set
forth in our filings with the SEC.

Additional information concerning these and other factors can be found
in our press releases and public periodic filings with the SEC. 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.

Proved reserves are those quantities of oil and gas which, by analysis
of geosciences and engineering data, can be estimated with reasonable
certainty to be economically producible from a given date forward, from
known reservoirs, and under existing economic conditions, operating
methods and government regulation before the time at which contracts
providing the right to operate expire, unless evidence indicates that
renewal is reasonably certain, regardless of whether the estimate is a
deterministic estimate or probabilistic estimate. EUR is the sum of
reserves remaining as of a given date, plus cumulative production as of
that date.

Penn Virginia Corporation

James W. Dean

Vice President,
Corporate Development

610-687-7531

Fax: 610-687-3688

invest@pennvirginia.com