Penn Virginia Corporation has declared drilling success with its initial Eagle Ford Shale well. The successful well, the Gardner #1-H, in which the company have an approximate 83 percent working interest, had a peak 24-hour production rate of approximately 1,100 barrels of oil per day and 1.0 million cubic feet of natural gas (MMcf) per day, or approximately 1,250 barrels of oil equivalent (BOE) per day.

PVA also announced that it has acquired approximately 4,100 additional net Eagle Ford Shale acres in Gonzales County, Texas for $14.5 million in cash. PVA expect that the partner in their initial Eagle Ford Shale acquisition will purchase up to a one-sixth working interest, or approximately 700 net acres, in the newly acquired acreage. The acquisition brings net Eagle Ford Shale acreage, all believed to be in the volatile oil window, to approximately 10,900 net acres (10,200 net acres, assuming their partner purchases a one-sixth working interest). The acquired leasehold is in the vicinity of the company's initial Eagle Ford Shale acreage position and is estimated to contain approximately 40 additional horizontal well locations.

As a result of this successful Eagle Ford Shale test well and encouraging nearby industry results, PVA expect to increase their drilling activity in the Eagle Ford Shale from one rig to three rigs during the year and to drill up to 29 wells during 2011. The company expect capital expenditures in the Eagle Ford Shale in 2011, including the newly acquired leasehold, of up to approximately $165 million, or 48 percent of the expected total capital program.

The Gardner #1-H was production tested on a 16/64' choke with a flowing tubing pressure of 2,200 psi. The well reached total vertical depth of 10,684 feet, with an approximate 4,600-foot horizontal lateral, and was completed with 16 frac stages. The oil is 41.5° gravity and the natural gas has a heating value content of approximately 1,500 BTU (British thermal units), with an estimated natural gas liquid yield of 190 barrels per MMcf.

A. James Dearlove, Chief Executive Officer, stated, 'We are very encouraged by the initial results of the Gardner #1-H test well, which exceeded our expectations, and are pleased to have a more meaningful acreage position in the Eagle Ford Shale. The increase in drilling activity in the Eagle Ford Shale in 2011 should provide strong growth in our oil and liquids production, as well as solid rates of return. We will continue to pursue opportunities to expand our acreage holdings in the Eagle Ford Shale and to build on our multi-year inventory of drilling locations.'

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