Penn Virginia Says 3Q Production Rose 6 Percent

For the full year, the company now expects production of about 49.5 to 51 billion cubic feet of natural gas equivalent per day, up from an earlier forecast of 1.0 to 1.5 billion cubic feet. That would be a 6 to 9 percent production increase over 2008 levels.

Penn Virginia also raised its forecast for 2009 capital expenditures to $216 million to $228.7 million — $48.7 million to $51 million more than an earlier projection. It attributed the higher forecast to the resumption of drilling in the Lower Bossier Shale in East Texas and an expanded leasehold acquisition effort in the Marcellus Shale, Granite Wash and Lower Bossier Shale.

Looking ahead to 2010, Penn Virginia forecast production of about 47 to 51 billion cubic feet of natural gas equivalent per day, about 5 percent to 14 percent higher than 2009 levels. That assumes capital spending of $300 million to $400 million — about 35 to 80 percent higher than the midpoint of its revised 2009 capital expenditure guidance.

"Natural gas prices have begun to show modest signs of improvement in recent weeks and the prospect of a recovery of gas prices in 2010 appears to be increasing," A. James Dearlove, Penn Virginia's president and CEO, said in a statement.