Penn Virginia Corporation Announces Year-End 2012 Proved Reserves And Provides Operational Update

Penn Virginia Corporation (NYSE: PVA) today announced proved oil and gas reserves and provided an update of its operations, including full-year and fourth quarter 2012 operational results.

Proved Reserves and Operational Update Highlights

Proved reserve data included the following:

• Proved oil and gas reserves were 113.5 million barrels of oil equivalent (MMBOE) at year-end 2012, compared to 130.3 MMBOE at year-end 2011, pro forma to exclude 16.9 MMBOE of Appalachian reserves sold in July 2012
  • Proved oil and natural gas liquids (NGL) reserves increased 28 percent to 45.5 MMBOE, or 40 percent of total proved reserves, from 35.6 MMBOE, or 24 percent of total proved reserves, at year-end 2011
  • Eagle Ford Shale proved reserves increased by 161 percent from 10.0 MMBOE at year-end 2011 to 26.1 MMBOE at year-end 2012
  • Pro forma natural gas proved reserves decreased by 161 billion cubic feet (Bcf) (26.9 MMBOE), or 28 percent, primarily due to low gas prices
• The pre-tax present value of estimated future net cash flows from proved reserves, discounted at 10 percent, (PV-10) was $692 million
  • The PV-10 value, excluding all proved undeveloped (PUD) wells with negative PV-10 value, was $839 million
  • The PV-10 value of proved developed reserves was $628 million
• As determined by our third party reserve engineering firm, the average gross estimated ultimate recovery (EUR) for Eagle Ford Shale PUD wells with full-length laterals in Gonzales County was approximately 400 thousand barrels of oil equivalent (MBOE) and in Lavaca County was approximately 500 MBOE

Operational results for the fourth quarter of 2012, with comparisons to the third quarter 2012 where applicable, included the following:

• Production of 1.4 MMBOE, or 15,444 barrels of oil equivalent (BOE) per day (BOEPD), compared to 1.4 MMBOE, or 15,245 BOEPD, pro forma to exclude production from Appalachian assets sold in July 2012
  • Eagle Ford Shale net production was approximately 6,900 BOEPD in the fourth quarter of 2012, compared to approximately 6,300 BOEPD
  • Fourth quarter and full-year 2012 production exceeded the upper end of previously provided guidance
  • Oil and NGL production was 56 percent of quarterly production, compared to 52 percent
• Currently, we have 66 (55.1 net) Eagle Ford Shale wells on line, with one (0.9 net) well waiting on completion, two wells being drilled in the Eagle Ford Shale in Lavaca County and one horizontal test well being drilled in the Pearsall Shale in Gonzales County
• The average peak gross production rate per well for the 59 wells we have completed to date with full-length laterals was 972 BOEPD. The initial 30-day average gross production rate for the 55 of these 59 wells with a 30-day production history was 651 BOEPD
  • The wells drilled and completed to date in Gonzales County with full-length laterals had an average initial gross production rate of 984 BOEPD and an initial 30-day average gross production rate of 649 BOEPD
  • The wells drilled and completed to date in Lavaca County with full-length laterals had an average initial gross production rate of 926 BOEPD and an initial 30-day average gross production rate of 660 BOEPD
  • The higher average 30-day initial rate in Lavaca County, along with the higher reservoir pressure, is consistent with higher expected EURs as compared to the EURs expected in Gonzales County
• Currently, we have approximately 40,000 gross (approximately 32,000 net) acres in the Eagle Ford Shale
  • We increased our net acreage by approximately 2,000 net acres since late October 2012, at a cost of approximately $4.9 million

Fourth Quarter 2012 Operational Results

Pricing

Our preliminary fourth quarter 2012 realized oil price was $99.30 per barrel, compared to $99.45 per barrel price in the third quarter of 2012. Our preliminary fourth quarter 2012 realized NGL price was $32.40 per barrel, compared to $32.94 per barrel price in the third quarter of 2012. Our preliminary fourth quarter 2012 realized natural gas price was $3.41 per thousand cubic feet (Mcf), compared to $2.72 per Mcf price in the third quarter of 2012. Adjusting for oil and gas hedges, our preliminary fourth quarter 2012 effective oil price was $106.40 per barrel and our effective natural gas price was $3.83 per Mcf, or increases of $7.10 per barrel and $0.42 per Mcf over the realized prices.

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