Penn Virginia Corporation Announces the Sale of Appalachian Assets for $100 Million

Penn Virginia Corporation (NYSE: PVA) today announced that it has
entered into a definitive agreement to sell substantially all of its
Appalachian assets, with the exception of the Marcellus Shale, to an
undisclosed buyer for gross cash proceeds of $100 million. This sale is
expected to close before mid-August and is subject to customary purchase
price adjustments and other customary closing conditions. The effective
date of the sale is January 1, 2012. We intend to use the net proceeds
from this sale to help fund our 2012 capital expenditure plan.

The properties to be sold include vertical and horizontal coalbed
methane and conventional properties, as well as royalty interests. The
properties had net production of approximately 20 million cubic feet of
natural gas equivalent per day during June 2012, almost 100 percent of
which was natural gas. As a result of the divestiture, our 2012
production will decrease by an estimated 2.9 billion cubic feet of
natural gas equivalent (Bcfe). Estimated proved reserves associated with
the divested properties, as determined by our third party engineers at
year-end 2011, were 105.7 ?Bcfe, 96 ?percent of which were proved
developed and 100 percent of which were natural gas.

RBC Richardson Barr served as PVA′s financial advisor in connection with
the transaction.

H. Baird Whitehead, President and Chief Executive Officer, stated, 'The
divestiture of these non-core natural gas assets will substantially
reduce our indebtedness, improve our liquidity and fund further
investment in our oily Eagle Ford Shale play in which we have had
continuing success. In addition, as a result of this divestiture, we
plan to close our Canonsburg, Pennsylvania office, which will reduce our
general and administrative expenses.

'We had previously discussed the potential sale of our Mid-Continent
assets. However, the preliminary bids we received for those assets were
unacceptable, due likely to the recent substantial declines in natural
gas liquids (NGL) and oil prices. With the higher operating income, cash
flow and drilling opportunities associated with our Mid-Continent
properties as compared to Appalachia, we are pleased to retain our
Mid-Continent assets.?

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, natural gas liquids 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, 610-687-7531

Vice
President, Corporate Development

Fax: 610-687-3688

invest@pennvirginia.com