Penn Virginia Borrowing Base Lowered

"We understand the financial community's concern regarding liquidity in general and in the exploration and production industry in particular and, therefore, believe this update regarding our revolving credit facility is appropriate," said Chief Executive A. James Dearlove.

Dearlove said he expects the company's borrowing base reduction to be far less severe than what has been or will be experienced by others in the industry and said the new base is in line with expectations in light of the weak commodity price environment, offset with the 35 percent increase in proved reserves.

Penn Virginia focuses on the exploration, acquisition, development and production of oil and gas reserves in onshore regions of the U.S., including the East Texas, Mississippi, the Mid-Continent region, the Appalachian Basin and the Gulf Coast of Louisiana and Texas.

Shares rose 4.8 percent, or 42 cents, to $9.15 in afternoon trading.