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

Set forth below are the initial results and statistics for certain Eagle Ford Shale wells drilled and completed to date.

																						30-Day Average Gross
														Peak Gross Daily								Daily Production
														Production Rates (4)								Rates (4)
		Lateral		Frac				Cumulative		Days On				Oil		Equivalent		Choke				Oil		Equivalent
Well Name		Length		Stages				Production		Production				Rate		Rate		Size				Rate		Rate
		Feet						BOE		Days				BOPD		BOEPD		Inches				BOPD		BOEPD
New Wells On-Line
Neuse #1H		4,650		19				43,080		125				633		667		13/64”				430		459
Henning #2H		3,153		13				54,094		98				920		1,002		14/64”				753		822
Smith #1H (5)		4,459		18				39,864		91				730		943		16/64”				487		629
Kusak #1H		4,453		18				39,532		70				656		779		18/64”				543		726
Leal #1H (5)		4,201		17				38,120		64				619		832		13/64”				514		725
Matias #1H (5)		4,453		20				27,502		49				899		1,013		12/64”				508		652
Miller #1H		4,502		23				17,736		46				871		931		35/64”				409		430
Freytag #1H (5)		4,952		25				20,928		33				1,071		1,195		14/64”				580		689
Kleihege #1H (5)		5,155		26				10,478		21				484		629		16/64”				400		515
Arledge Ranch #1H		4,150		21				13,666		18				1,015		1,117		16/64”				---		---
Raab #1H (5)		5,450		22				---		---				808		1,046		17/64”				---		---
Barraza #1H (5)		3,952		16				---		---				574		680		15/64”				---		---
R. Washington #1H		3,702		19				---		---				744		805		15/64”				---		---
Averages (13 newest wells)		4,402		20				27,845		56				771		895		16/64”				514		627
Averages (6 newest Gonzales wells)		4,102		19				33,622		71				807		884		19/64”				534		609
Averages (7 newest Lavaca wells)		4,660		21				23,031		44				741		905		15/64”				498		642
Averages (59 wells) (6)		4,006		17				84,057		337				882		972		16/64”				579		651
Averages (47 Gonzales wells) (6)		3,856		16				93,309		393				906		984		17/64”				589		649
Averages (12 Lavaca wells) (6)		4,594		20				47,822		120				789		926		14/64”				540		660
Other Wells
Targac #1H (5,7)
Technik #1H (5,7)
Fojtik #1H (5,7)
Cannonade Ranch #50H (8)

(4)		Wellhead rates only; the natural gas associated with these wells is yielding approximately 145 barrels of NGLs per million cubic feet. BOPD is defined as barrels of oil per day.
(5)		Wells located in Lavaca County; all other wells are located in Gonzales County.
(6)		Seven wells (six in Gonzales County and one in Lavaca County) had operational issues and/or shorter laterals and fewer frac stages. As a result, production data for these seven wells have been excluded.
(7)		The Targac #1H well is waiting on completion. The Technik #1H and Fojtik #1H are currently being drilled.
(8)		The Cannonade Ranch #50H well is a horizontal exploratory well targeting the Pearsall Shale and is currently being drilled.

Derivatives Update

To support our operating cash flows, we hedge a portion of our oil and natural gas production at pre-determined prices or price ranges. Based on hedges currently in place, as detailed in the table below, we have hedged approximately 4,500 barrels of daily crude oil production at a weighted average floor/swap price of $97.29 per barrel and 20 million cubic feet of daily natural gas production in 2013 at a weighted average floor/swap price of $3.76 per Mcf. The following table summarizes our open hedge positions through swaps and collars as of January 28, 2013.

						Weighted Average
				Average Volume Per Day		Price per MMBtu or Barrel
		Instrument Type				Floor / Swap			Ceiling
				(MMBtu)
Natural Gas
First quarter 2013		Collars		10,000		$	3.50		$	4.30
Second quarter 2013		Collars		10,000		$	3.50		$	4.30
Third quarter 2013		Collars		10,000		$	3.50		$	4.30
Fourth quarter 2013		Collars		15,000		$	3.67		$	4.37
First quarter 2014		Collars		5,000		$	4.00		$	4.50
First quarter 2013		Swaps		10,000		$	4.01
Second quarter 2013		Swaps		10,000		$	4.01
Third quarter 2013		Swaps		10,000		$	4.01
Fourth quarter 2013		Swaps		5,000		$	4.04
				(Barrels)
Crude Oil
First quarter 2013		Collars		1,590		$	90.00		$	99.35
Second quarter 2013		Collars		1,900		$	90.00		$	99.17
Third quarter 2013		Collars		1,900		$	90.00		$	99.17
Fourth quarter 2013		Collars		1,900		$	90.00		$	99.17
First quarter 2013		Swaps		2,250		$	103.51
Second quarter 2013		Swaps		2,250		$	103.51
Third quarter 2013		Swaps		1,500		$	102.77
Fourth quarter 2013		Swaps		1,500		$	102.77
First quarter 2014		Swaps		2,000		$	100.44
Second quarter 2014		Swaps		2,000		$	100.44
Third quarter 2014		Swaps		1,500		$	100.20
Fourth quarter 2014		Swaps		1,500		$	100.20
First quarter 2013		Swaptions		812		$	100.00
Second quarter 2013		Swaptions		812		$	100.00
Third quarter 2013		Swaptions		812		$	100.00
Fourth quarter 2013		Swaptions		812		$	100.00

Non-GAAP Measure

PV-10 value is the estimated future net cash flows from estimated proved reserves discounted at an annual rate of ten percent before giving effect to income taxes. The standardized measure is the after-tax estimated future cash flows from estimated proved reserves discounted at an annual rate of 10 percent, determined in accordance with generally accepted accounting principles (GAAP). We use PV-10 value as one measure of the value of our estimated proved reserves and to compare relative values of proved reserves among exploration and production companies without regard to income taxes. We believe that securities analysts and rating agencies use PV-10 value in similar ways. Our management believes PV-10 value is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend principally on the characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. We cannot reconcile PV-10 value to the standardized measure at this time because final income tax information for 2012 is not yet available. The standardized measure will be provided in our forthcoming Form 10-K for the year ended December, 31 2012 to be filed with the SEC.

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