Penn Virginia Corporation Provides Operational Update

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

Highlights

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

• 
  Quarterly production of 11.7 billion cubic feet of natural gas
  equivalent (Bcfe), or 128.6 million cubic feet of natural gas
  equivalent (MMcfe) per day, a 12 percent increase as compared to 10.5
  Bcfe, or 115.1  MMcfe per day in the second quarter of 2010
  
  
  • 
    Quarterly oil and natural gas liquid (NGL) production increased to
    472 thousand barrels, or 24 percent of total equivalent
    production, from 224 thousand barrels, or 13  percent of total
    equivalent production, in the second quarter of 2010
    
• 
  Completed and brought on line nine (7.5 net) Eagle Ford Shale wells,
  for a total of 12 (10.0 net) Eagle Ford Shale wells to date, with an
  average peak gross production rate of 1,105  barrels of oil equivalent
  per day (BOEPD)
  
  
  • 
    To date, six wells have had a 30-day average gross production rate
    of 693  BOEPD
    
  • 
    Current production of approximately 8,000 (5,000 net) BOEPD
    
• 
  Three rigs currently drilling the 15^th through 17^th
  Eagle Ford Shale wells, with two wells waiting on completion
  
• 
  Added approximately 1,200 net acres to the Eagle Ford Shale play in
  July 2011, bringing total net acreage to approximately 17,800 (13,900
  net) acres in Gonzales County, TX with up to 142 identified well
  locations
  
• 
  Third-party pipeline construction is complete, with natural gas
  gathering and processing in place
  

Production

Production in the second quarter of 2011 was approximately 11.7 Bcfe, or
128.6  MMcfe per day, a 12  percent increase as compared to 10.5 Bcfe, or
115.1 MMcfe per day, in the prior year quarter and a five percent
decrease from 12.2 Bcfe, or 135.2  MMcfe per day, in the first quarter of
2011. As a percentage of total equivalent production, oil and NGL
volumes were 24  percent in the second quarter of 2011, as compared to 13
percent in the prior year quarter and 20  percent in the first quarter of
2011. Total product revenues from the sale of natural gas, crude oil and
NGLs were $73.0  million, or $6.24 per thousand cubic feet of natural gas
equivalent (Mcfe), in the second quarter of 2011, up 39  percent as
compared to $52.3  million, or $5.00 per Mcfe, in the second quarter of
2010. Oil and NGL revenues were 48 percent of total product revenues in
the second quarter of 2011, as compared to 26 percent in the prior year
quarter and 39 percent in the first quarter of 2011.

The year-over-year production increase was due to our new Eagle Ford
Shale wells and contributions from 2010 drilling in the horizontal
Cotton Valley and Haynesville Shale plays. The 111 percent increase in
oil and NGL production as compared to the prior year quarter was due to
drilling activity in the Eagle Ford Shale and increased NGL volumes from
the Granite Wash. The sequential quarterly decrease in production was
attributable primarily to natural gas production declines, partially
offset by higher oil and NGL volumes in the Eagle Ford Shale.

Eagle Ford Shale

During the second quarter of 2011, we drilled nine (7.5 net) operated
wells in the Eagle Ford Shale, all of which were successful. We
currently have three rigs drilling our 15^th through 17^th
wells, two wells that are waiting on completion (WOC) and 12 (10.0 net)
wells that are producing approximately 8,000 (5,000 net) BOEPD (see
table below).

We previously announced the success of our initial six wells in the
Eagle Ford Shale, which had an average peak gross production rate of
1,040 BOEPD. Our next six wells were brought on line with an average
peak gross production rate of 1,169 BOEPD. As detailed in the table
above, the discovery well (Gardner #1-H) has cumulative gross production
(wellhead) of approximately 85,000 barrels of oil and 67 MMcf of natural
gas, or approximately 96 thousand barrels of oil equivalent, after 183
days on line and is still currently producing approximately 350 BOEPD.

In July 2011, we acquired an additional 1,200 net acres in Gonzales
County for approximately $4,000 per net acre, increasing our net Eagle
Ford Shale leasehold position from 12,700 net acres to 13,900 net acres.
Thus far in 2011, we have added 6,500 net acres in Gonzales County for
approximately $24 million. We have identified up to 142 horizontal well
locations on our current acreage position of approximately 17,800 gross
acres. Our full-year 2011 guidance includes up to 34 (27.9 net) wells in
2011, as compared to previous guidance of up to 29 (24.4 net) wells,
with up to 23 (18.7 net) wells to be drilled during the second half of
2011. We will attempt to expand our Eagle Ford Shale position in
Gonzales County and other areas in the play through additional leasing
and selective acquisitions.

Capital Expenditures

During the second quarter of 2011, oil and gas capital expenditures were
approximately $105 million, as compared to $116  million in the second
quarter of 2010 and $104 million in the first quarter of 2011,
consisting of:

• 
  $95 million for drilling and completion activities, including 19 (12.6
  net) wells, 16 (10.4 net) of which were successful, one (1.0 net) of
  which was unsuccessful and two (1.3 net) of which are WOC
  
• 
  $8 million for seismic, pipeline, gathering and facilities
  
• 
  $2 million for leasehold acquisitions and other
  

Other Operations

Granite Wash ? During the second quarter of
2011, seven (2.9 net) wells were drilled in the Mid-Continent, including
four (1.1 net) successful non-operated wells and one (0.6 net)
successful operated Granite Wash well in the South Clinton Field in
Washita County, OK, one (0.1 net) successful non-operated Woodford Shale
well in Pittsburg County, OK and, as previously disclosed, one (1.0  net)
unsuccessful exploratory vertical well in Roberts County, TX.

The initial production results experienced in many recently drilled and
completed Granite Wash wells have been less than many of the initial
wells drilled in the play. This is primarily the result of a
communication issue between wells related to down-spacing and
fracturing, which has led to downward adjustments to the type curve and
the forecasted production. This issue, together with reduced
non-operated drilling activity, has led us to reduce estimated full-year
2011 production from the Granite Wash by approximately 2.7  Bcfe. Even
with the reduction of the initial production rates, the economics of the
typical well still generate an attractive rate of return.

Further, we recently signed an agreement to sell our Arkoma Basin and
other non-core Mid-Continent assets for $30.5  million. As a result, we
have further reduced estimated full-year 2011 production in the
Mid-Continent by 0.9  Bcfe. Our full-year 2011 guidance includes up to 20
(8.7 net) Granite Wash wells, as compared to previous guidance of up to
21  (9.8 net) Granite Wash wells, with up to 11 (2.4 net) wells to be
drilled during the second half of 2011.

Marcellus Shale ? During the second quarter
of 2011, we drilled three (2.3 net) wells in the Marcellus Shale in
Potter County, PA, including two (1.8 net) operated wells and one (0.5
net) non-operated well. One (1.0 net) operated well was completed and
two (1.3 net) wells are WOC. We have reduced our 2011 guidance for the
Marcellus Shale by six (5.5  net) horizontal wells. As previously
disclosed, our recently completed wells failed to meet our expectations,
but we plan to test the eastern portion of our acreage position in
Potter and Tioga Counties, initially anticipated with vertical wells,
commencing in the second half of 2011.

Second Quarter 2011 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss
second quarter 2011 financial and operational results, is scheduled for
Thursday, August 4, 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 5475077), 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 5475077. 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

E-Mail:
invest@pennvirginia.com