Penn Virginia Says 3Q Production Rose 6 Percent

RADNOR, Pa. (AP) — Penn Virginia Corp. reported a 6 percent rise in its third-quarter oil and gas production Friday, lifted its production forecast for the year and said it expects an $87.9 million charge in the third quarter related to the sale of some properties.

During the quarter, the Radnor, Pa.-based company said it produced 12.4 billion cubic feet of natural gas equivalent per day, up from 11.7 billion cubic feet during the same period in 2008.

Capital expenditures totaled about $16 million, including about $8 million for drilling and completion, the company said. Penn Virginia drilled two Granite Wash wells, one of them successful and the other yet to be completed.

It also started selling its Gulf Coast properties and expects to complete a transaction during the fourth quarter. As a result, Penn Virginia said it incurred a non-cash impairment charge of $87.9 million in the third quarter.

In the fourth quarter, Penn Virginia said it expects production to decline to about 9.8 to 11.3 billion cubic feet of natural gas equivalent per day due to the anticipated sale of Gulf Coast assets and natural production declines.