Penn Virginia Corporation Provides Operational Update

Penn Virginia Corporation (NYSE: PVA) today provided an update of its
oil and gas operations, including first quarter 2011 results.

Highlights

Operational results for the first quarter of 2011 and other operational
highlights included the following:

• 
  Quarterly production of 12.2 billion cubic feet of natural gas
  equivalent (Bcfe), or 135.2 million cubic feet of natural gas
  equivalent (MMcfe) per day, a 21 percent increase as compared to 10.0
  Bcfe, or 111.6  MMcfe per day in the first quarter of 2010, pro forma
  to exclude 0.3 Bcfe of production from Gulf Coast assets sold in
  January 2010;
  
• 
  Quarterly oil and natural gas liquid (NGL) production increased to 20
  percent of total equivalent production from 17  percent in the first
  quarter of 2010;
  
• 
  Full-year 2011 production guidance of 50.0 to 54.0 Bcfe, unchanged
  from previous guidance, including oil and NGL production of between 28
  and 30 percent of total equivalent production (approximately
  35  percent in the fourth quarter of 2011), as compared to between 25
  and 27 percent of total equivalent production in previous guidance;
  
• 
  Full-year 2011 capital expenditures guidance of $320 to $370 million,
  an increase of $20 to $25  million from previous guidance, due
  primarily to additional leasehold acquisitions and higher drilling
  costs associated with the Eagle Ford and Marcellus Shales;
  
• 
  Three rigs currently operating in the Eagle Ford Shale drilling the
  fifth through seventh wells, with one well producing, two wells
  completed and flowing back and one well waiting on completion; and
  
• 
  One rig currently operating in the Marcellus Shale drilling the fourth
  well, with two wells completed and flowing back and one well waiting
  on completion.
  

Production

Production in the first quarter of 2011 was approximately 12.2 Bcfe, or
135.2  MMcfe per day, a 21  percent increase as compared to 10.0 Bcfe, or
111.6 MMcfe per day, pro forma to exclude 0.3 Bcfe of production from
Gulf Coast assets sold in January 2010 (reported production was 10.3
Bcfe, or 114.9 MMcfe per day), and a five percent decrease from 13.1
Bcfe, or 142.5 MMcfe per day, in the fourth quarter of 2010. As a
percentage of total equivalent production, oil and NGL volumes were 20
percent in the first quarter of 2011, as compared to 17 percent in the
prior year period.

The year-over-year production increase was due to the effects of
significantly increased drilling activity during 2010, while the
sequential quarterly decrease was due to a reduction in natural gas
drilling and base production declines, as well as a lag in initial
production volumes from the Eagle Ford Shale due to completion delays
associated with the drilling of multiple wells from the same location.

Capital Expenditures

During the first quarter of 2011, oil and gas capital expenditures were
approximately $104 million, as compared to $78  million in the first
quarter of 2010 and $108 million in the fourth quarter of 2010,
consisting of:

• 
  $64 million for drilling and completion activities, including 12 (7.7
  net) wells, eight (4.1 net) of which were successful (Granite Wash and
  Eagle Ford Shale), two (1.6 net) of which were unsuccessful
  (Mid-Continent) and two (2.0 net) of which have not been completed
  (Marcellus Shale);
  
• 
  $2 million for seismic, pipeline, gathering and facilities; and
  
• 
  $38 million for leasehold acquisitions and other.
  

Full-Year 2011 Guidance Update

Full-year 2011 guidance highlights are as follows:

• 
  Full-year 2011 production guidance of 50.0 to 54.0 Bcfe, unchanged
  from previous guidance;
  
• 
  Full-year 2011 oil and NGL production guidance of between 28 and 30
  percent of total equivalent production, as compared to between 25 and
  27 percent of total equivalent production in previous guidance,
  including approximately 35  percent in the fourth quarter of 2011; and
  
• 
  Oil and gas capital expenditures guidance of $320 to $370 million, an
  increase of $20 to $25  million from previous guidance, due primarily
  to additional leasehold acquisitions and higher drilling costs
  associated with the Eagle Ford and Marcellus Shales.
  

We expect production in the second quarter of 2011 to be consistent with
that of the first quarter, after which we expect production in the
second half of the year to be significantly higher due to the expected
impact of three rigs drilling in the Eagle Ford Shale from the second
quarter forward. We expect our updated 2011 capital expenditures program
to include up to 29 (24.3 net) horizontal Eagle Ford Shale wells, up to
21  (9.7  net) horizontal Granite Wash wells and up to 11 (10.0 net)
horizontal Marcellus Shale wells. Overall, we expect 2011 drilling and
completion expenditures to range between $260 and $305 million. In
addition, we expect 2011 leasehold capital expenditures to range between
$45 and $47 million, primarily in the Eagle Ford Shale, excluding any
future acquisitions. We expect other capital expenditures, including
seismic and facilities, to range between $15 and $18 million.

Operational Update

Eagle Ford Shale ? In the Eagle Ford Shale
in southeast Gonzales County, Texas, we currently have three rigs
drilling our fifth through seventh wells. Currently, one well is
producing, two have been recently completed and are flowing back, and a
fourth well is waiting on completion.

We previously announced our initial successful well (Gardner #1-H) in
late February 2011. This well is still producing almost 500 barrels of
oil and 300 thousand cubic feet (Mcf) of liquids-rich natural gas per
day, or approximately 550  barrels of oil equivalent (BOE), after 80 days
of production. We have an approximate 83  percent working interest in the
Gardner #1-H, which had a peak 24-hour production rate of approximately
1,100  barrels of oil and 1.0 million cubic feet (MMcf) of natural gas,
or approximately 1,250 BOE. This well has cumulative production of
approximately 49,000 barrels of oil and 45 MMcf of natural gas. The gas
is being flared until gathering facilities are constructed, after which
gas from this well and future wells will be processed and NGL volumes
recovered. We estimate an additional 190  barrels of NGLs per MMcf of
inlet natural gas will be recovered when processing begins. The
gathering facilities are expected to be in place by early June 2011.

Since late February 2011, we have acquired additional acreage in the
vicinity of our current wells, increasing our net Eagle Ford Shale
position from 10,200 net acres to 12,700 net acres, assuming our partner
purchases a one-sixth working interest in a portion of the recently
acquired acreage. We believe that all of our Eagle Ford position is in
the volatile oil window. We have preliminarily identified between 90 and
115 horizontal drilling locations and we intend to continue expanding
our Eagle Ford position through additional leasing and selective
acquisitions.

Marcellus Shale ? In Potter County,
Pennsylvania, our first two horizontal Marcellus Shale wells (Risser
#A-1H and #A-2H) have been completed and are flowing back, while a third
well is waiting on completion and a fourth well is being drilled. We
currently have approximately 35,000 net acres and over 200 drilling
locations in the Marcellus Shale in Potter and Tioga Counties.

Mid-Continent ? During the first quarter of
2011, eight (4.1 net) wells were drilled in the Mid-Continent, including
six (2.4 net) development and one (0.7 net) exploratory Granite Wash
wells, along with one (0.9 net) Tonkawa exploratory well. The
development wells were all successful, while the two exploratory wells
and one (0.5  net) Granite Wash exploratory well, the results of which
were being evaluated at year-end 2010 as announced previously, were
unsuccessful. Thus far in 2011, eight  (3.8 net) Granite Wash development
wells have been completed in the South Clinton Field with initial
production rates ranging between 1.6 and 10.2 MMcfe per day (6.7  MMcfe
per day average, with oil comprising approximately 35  percent of the
wellhead volumes), excluding processed NGLs which typically add an
additional 20 to 25 percent to equivalent production volumes.

We drilled our last operated well planned for 2011 in the South Clinton
Field and moved the rig to the Eagle Ford Shale. Granite Wash
development drilling for the remainder of the year will continue on a
non-operated basis with Chesapeake Energy Corporation (NYSE: CHK) as the
operator.

First Quarter 2011 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss
first quarter 2011 financial and operational results, is scheduled for
Thursday, May 5, 2011 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 ten minutes before the scheduled
start of the conference call (use the passcode 7415900), 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 7415900. 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 natural gas and oil in various domestic onshore regions including
Texas, Appalachia, the Mid-Continent and Mississippi.

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 natural gas, NGLs and oil; our ability to develop,
explore for, acquire and replace oil and gas reserves and sustain
production; any impairments, write-downs or write-offs of our reserves
or assets; the projected demand for and supply of natural gas, NGLs and
oil; 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; uncertainties
related to expected benefits from acquisitions of oil and natural gas
properties; 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 regulation 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 Securities and Exchange Commission (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.

Penn Virginia Corporation

James W. Dean

Vice President,
Corporate Development

Ph: 610-687-7531

Fax: 610-687-3688

invest@pennvirginia.com