Penn Virginia Corporation and Penn Virginia Resource Partners, L.P. declares that PVR has purchased royalty interests from PVA's oil and gas exploration and production subsidiary, Penn Virginia Oil & Gas Corporation (PVOG), for $31.0 million.

The royalty interests are associated with leases of property located in Wise, Scott and Lee Counties, Virginia, and Harlan and Letcher Counties, Kentucky, with estimated proved reserves of approximately 8.7 billion cubic feet of natural gas equivalent (Bcfe) at January 1, 2007. Approximately 1.1 million cubic feet of natural gas equivalent (MMcfe) per day is currently being produced from the property, net to the royalty interests, and PVR expects operating cash flow from the royalty interests to be approximately $3.9 million in 2008. PVR funded the acquisition using its revolving credit facility and PVA will use the net proceeds from the sale to repay borrowings under its revolving credit facility.

On August 30, 2007, PVA announced that it had spent $47.9 million to acquire Oklahoma properties with estimated proved reserves of 18.8 Bcfe and net production of approximately 3.1 MMcfe per day. PVA funded this acquisition using its revolving credit facility. PVA expects to match this acquisition with the divesture of the royalties to PVR to effectuate a like kind exchange and defer the tax gain on the sale of the royalties