Penn Virginia Corporation Provides Second Quarter 2006 Oil and Gas Operational Results; Announces Fifth Consecutive Quarterly Production Record

Oil and gas production for the second quarter of 2006 totaled 7.5billion cubic feet equivalent (Bcfe), or 82 million cubic feetequivalent (MMcfe) per day, surpassing the previous quarterly recordof 7.3 Bcfe, set in the first quarter of 2006. Production through thefirst six months of 2006 was 14.8 Bcfe, which is 11 percent higherthan the 13.3 Bcfe reported for the same period of 2005. Productionincreases in the second quarter were partially offset by normal fielddeclines.

The Company's continued growth in production was due to thesuccess of its development and exploratory drilling programs. Theseprograms primarily include the Company's Appalachian horizontalcoalbed methane (HCBM) play, the Cotton Valley play in east Texas, theSelma Chalk play in Mississippi, and the success of the Company'sFannett exploration prospect in south Texas drilled in the secondquarter of last year.

Based on production and drilling program results through thesecond quarter and production added from the Company's June 2006acquisition of Crow Creek Holding Company, the Company now expectsfull-year 2006 production to range from 30.0 to 32.0 Bcfe, which is anincrease from the 28.5 to 30.5 Bcfe of guidance provided in theCompany's May 4, 2006, press release.

Oil and gas capital expenditures by Penn Virginia for the secondquarter of 2006 were approximately $133 million, consisting of:

-- $72 million for the Crow Creek acquisition

-- $38 million to drill 34 gross development wells, 32 of which were successful;

-- $9 million to drill 3 exploratory wells resulting in two successes and one dry hole;

-- $9 million for leasehold acquisitions and other;

-- $1 million for the acquisition of seismic data; and

-- $4 million to construct gathering and transmission lines and compressor stations to facilitate production growth in Appalachia and east Texas.

Second Quarter 2006 Operations Update

The Company completed the acquisition of Crow Creek HoldingCompany for $71.5 million subject to adjustments, as was announced inthe Company's June 13, 2006 press release. The acquisition includesoperations primarily in the Oklahoma portion of the Arkoma andAnadarko Basins. As of the acquisition's April 1, 2006 effective date,Penn Virginia estimated Crow Creek had total net proved reserves ofapproximately 42.7 Bcfe, about 85 percent of which is natural gas, andestimated probable and possible reserves of 38 Bcfe. Approximately 61percent of the estimated proved reserves are in the proved developedcategory and 39 percent are proved undeveloped. The acquisition addsapproximately 180 primarily CBM and Granite Wash drilling locations tothe Company's inventory. Through the remainder of 2006, the Companyexpects to drill 20 to 25 Hartshorne coal CBM wells in the ArkomaBasin and one or two wells in the western Oklahoma Granite WashFormation.

In south Louisiana, the Company participated in the drilling ofthree (0.9 net) exploratory wells:

-- The Cotton Land Corp. #1 (0.4 net) was a successful test of the Company's Bayou Postillion Prospect in Iberia Parish, Louisiana. The well tested at a rate of 9.6 million cubic feet (MMcf) per day and 75 barrels of oil (Bo) per day with 3,235 psi flowing tubing pressure from an Oligocene sand, and is expected to be on line to sales in the late third quarter or early fourth quarter of 2006. The success of this well results in at least two follow-up locations, the first of which the Company plans to spud in the late fourth quarter of 2006 (Company working interest 41 percent);

-- The Miami Corp #1 (0.2 net) was a successful test of the Company's Ardbeg Prospect in St. Mary Parish, Louisiana. The well tested at rates of approximately of 1.0 MMcf per day and 100 Bo per day with a flowing tubing pressure of 3,900 psi from the Rob 6A sand, and is expected to be on line to sales in the late fourth quarter (Company working interest 30 percent);

-- The Borah etal #1 (0.3 net) was a test of the Company's Fishers Ridge Prospect in St. Martin Parish, Louisiana, and resulted in a dry hole when the objective interval was found to be wet.

Five (2.5 net) HCBM development wells were drilled on theCompany's leasehold positions in West Virginia during the secondquarter of 2006 with a 100 percent success rate. Through the firsthalf of the year, the Company has drilled thirteen (6.3 net)successful HCBM development wells, with a current average netproduction of 15 MMcfe per day. Three CDX Gas, LLC operated rigs arecurrently drilling within an area of mutual interest (AMI) betweenPVOG and CDX. The Company expects to participate in a total of 29(14.1 net) HCBM wells during 2006.

In Mississippi, 19 (gross and net) Selma Chalk development wellswere drilled during the second quarter in the Company's Baxterville,Gwinville and Maxie fields, 17 of which were successful. Dailyproduction in the Company's Mississippi fields for the second quarterof 2006 was 17.2 MMcfe per day. For the first half of this year,production has averaged 17.1 MMcfe per day and represents an increaseof 43 percent over the 12.0 MMcfe per day reported for the first halfof 2005. The Company continues to actively develop its assets in theSelma chalk, and currently has two rigs drilling. A total of 85 wells(Gross) are expected to be drilled during 2006. During the second halfof the year, horizontal drilling and completion will be tested in theSelma chalk, with one well planned in Gwinville and one inBaxterville. In addition, a five well, 10 acre down-spacing testprogram is planned to be drilled in Baxterville. The Selma Chalk istypically drilled on 20 acre spacing.

In the Company's Cotton Valley project in Harrison County, Texas,Penn Virginia drilled six (4.0 net) successful development wells, allof which are located within the Company's AMI with GMX Resources Inc.(NASDAQ: GMXR) in the North Carthage field. As a result of theCompany's successful and growing development drilling program in theplay, net production for the first half of 2006 increased 61 percentto an average of 9.8 MMcfe per day from 6.1 MMcfe per day averageduring the first half of 2005. The Company recently increased thenumber of rigs drilling to five, one of which is shared with GMXR.

Recently the Company initiated testing of deeper prospective payintervals below the typical Cotton Valley pay section. Four differentzones within the Bossier / Haynesville / Smackover section have beentested in nine wells and all have tested gas at various rates. Resultsto date have been encouraging, but the Company believes more testingand evaluation is needed before attempting to assign incrementalreserves to these additional pay intervals. Drilling and completion ofthese zones are expected in any future wells drilled.

One of two exploratory Ratcliffe horizontal wells drilled in theRed Bank prospect in Williams County, ND (40 percent working interest)has been plugged and abandoned since the zone tested 100 percentwater. The second well is still being tested. In addition, the BakkenDolomite well drilled in the Redwater prospect in McCone County, MT(50 percent working interest) is under evaluation. Both prospects areoperated by Bill Barrett Corporation (NYSE: BBG).

The company is currently participating in the drilling of twoexploration wells, and a third is scheduled to spud in August:

-- Palace Operating Company spudded the C.M. Peterson #1 in April to test Miocene sands in the Company's Laphroaig Prospect in St. Mary's Parish, Louisiana. Projected total depth (TD) is 20,527 feet. Estimated gross unrisked reserves for the prospect are 49 Bcfe. The Company is carried to casing point and has a 25 percent working interest after casing point.

-- Century Exploration spudded the Miami Corp #3 in July to test Operc sands in the Company's Highland Park Prospect in Bayou Carlin, St. Mary Parish, Louisiana. Projected TD is 15,750 feet. Estimated gross unrisked reserves for the prospect are 16 Bcfe. The Company's working interest is 30 percent.

-- Brigham Exploration (NASDAQ: BEXP) plans to spud the Williams Land #1 in August to test Planulina sands in the Company's Mystic Bayou Prospect, St. Martin Parish, Louisiana. Projected TD is 16,100 feet. Estimated gross unrisked reserves for the prospect are 60 Bcfe, and the Company's working interest in the well is approximately 30 percent.

Hedging Update

Natural gas and crude oil commodity price hedging positions remainin place as disclosed in the Company's Form 10-Q for the first quarterof 2006. In conjunction with the Company's ongoing hedging program,Penn Virginia has entered into the following additional natural gasprice hedges in the form of costless collars:

Price Per MMbtu
MMbtu --------------------
Per Day Floor Ceiling
---------- --------- ----------
July 2006 through October 2006(1) 25,000 $6.00 $9.40
November 2006 through March 2007 5,000 $9.00 $18.50
January 2007 through December 2007(2) 3,000 $8.00 $11.25
April 2007 through October 2007 5,000 $8.00 $13.50
November 2007 through March 2008 10,000 $9.00 $17.95
January 2008 through December 2008(2) 2,500 $8.00 $10.75

(1)Position is in the form of a three-way costless collar where
the Company receives NYMEX + $1.50 at prices below $4.50. The ceiling
is an "Asian" call, where the Company will pay if the average of the
four NYMEX closing prices for the period of July through October 2006
if it exceeds the ceiling price.

(2)Position is in the form of a three-way costless collar where
the Company receives NYMEX + $3.00 at prices below $5.00.

In conjunction with the acquisition of Crow Creek Holding Company,the Company assumed the following four natural gas price hedges, threein the form of costless collars and one in the form of put options:
Price Per MMbtu
MMbtu ----------------
Per Month Floor Ceiling
---------- ------- --------
April 2006 through December 2006 30,000 $7.00 $10.15
April 2006 through December 2006 30,000 $7.00 $11.25
April 2006 through December 2006 30,000 $6.50 $9.15
April 2006 through December 2006 40,000 $9.00 NA - put
options

Penn Virginia Corporation (NYSE:PVA) is an energy company engagedin the exploration, acquisition, development and production of crudeoil and natural gas. Through its ownership in Penn Virginia ResourcePartners, L.P. (NYSE:PVR), PVA also manages coal properties andrelated assets and operates a midstream natural gas business. PVA isheadquartered in Radnor, PA. For more information about PVA, visit theCompany's website at www.pennvirginia.com.

Forward-looking statements: Penn Virginia Corporation is includingthe following cautionary statement to make applicable and takeadvantage of the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995 for any forward-looking statements madeby, or on behalf of, the Company. With the exception of historicalmatters, any matters discussed are forward-looking and, therefore,involve risks and uncertainties that could cause actual results todiffer materially from projected results. These risks, uncertaintiesand contingencies include, but are not limited to, the following:development activities, capital expenditures, acquisitions anddispositions, drilling and exploration programs, expected commencementdates of oil and natural gas production, projected quantities offuture oil and natural gas production by the Company, costs andexpenditures and projected demand or supply for oil and natural gas.Additional information concerning these and other factors can be foundin the Company's press releases and public periodic filings with theSecurities and Exchange Commission, including the Company's AnnualReport on Form 10-K for the year ended December 31, 2005, filed onMarch 16, 2006. Except as required by applicable securities laws, theCompany does not intend to update its forward-looking statements.