Penn Virginia Corporation Provides an Update on Lavaca County Eagle Ford Shale Operations

Penn Virginia Corporation

today provided an update of its Eagle Ford Shale operations in Lavaca County, Texas. Eagle Ford Shale Operational update highlights are as follows: The third exploratory “earning” well, the Schacherl #1H (75 percent working interest) on our 13,500 gross acre area of mutual interest (AMI) in Lavaca County was completed and turned in line at the end of May. The Schacherl #1H, with 22 frac stages and a lateral length of approximately 5,450 feet, had an average initial production (IP) rate of 1,277 barrel of oil equivalents per day (BOEPD) of wellhead volume (90 percent oil and 10 percent wet gas; 1,011 BOEPD average over the first seven days of production). This well has been significantly choked with a flowing pressure of approximately 3,350 pounds per square inch on a 14/64” choke as the recovery of frac fluid continues. This well is located between the first two wells in Lavaca County, the Effenberger #1H and Vana #1H, which have averaged 700 and 441 BOEPD for the 52 and 48 days that they have been on line, respectively. The fourth well in Lavaca County, the Sralla #1H, should spud within a week and is located to the southwest of the Effenberger well near the Gonzales County line. Two additional wells are expected to be drilled in Lavaca County during 2012, thereby fulfilling our requirements under the AMI and earning our remaining net acreage. We recently added 1,680 net acres to our Eagle Ford Shale position, bringing our acreage position in Gonzales and Lavaca Counties to approximately 36,100 gross (a minimum of approximately 24,900 net) acres, assuming we earn a minimum of approximately 6,800 net acres of remaining AMI acreage in Lavaca County. Assuming down-spacing on the majority of our acreage, we currently estimate that we have up to approximately 250 total well locations, of which 48 have been drilled.