PENNVIRGINIA CORPORATION NYSE: PVA John S. Herold, Inc.s - PowerPoint PPT Presentation

PENNVIRGINIA CORPORATION NYSE: PVA John S. Herold, Inc.’s Pacesetters Energy Conference “Take Another Road” – Unconventional Resources Old Greenwich, CT September 27, 2007

Penn Virginia Oil & Gas Corp. (PVOG) PENN VIRGINIA CORPORATION • Exploration and Production 487 Bcfe of Proved Reserves 1 � � 94% gas and 71% developed 1 2Q 2007 Production Rate of 111 MMcfe/d � Primarily Low-Risk Development, With � Exploration Upside Unconventional Drilling is ~90% of � Program Spending Projects in Five Main Areas: � - Cotton Valley - Appalachia - Mid-Continent - Gulf Coast Onshore - Mississippi Growth-via-Drillbit Focus, Supplemented by Acquisitions � Strong Financial Condition and Cash Flows Help � Position PVA Favorably for Acquisitions and Growth 1 As of December 31, 2006 2

PVOG: Production, Reserves and Upsides PENN VIRGINIA CORPORATION # of E&P Operating Areas 2Q07 Gross Daily Reserves (12/31/06) 1 R/P Addl. Areas of Prod. Proved PD “3P” Ratio Well Operations Locs. (MMcfe/d) (Bcfe) (Bcfe) (Bcfe) (Years) Appalachia Mid-Continent Appalachia 34.3 156 136 219 12.5 343 (1980) 31% 32% 39% 16% 15% 20.2 121 87 181 16.4 430 Mississippi (1999) 18% 25% 25% 13% 18% Gulf Coast 28.7 49 38 187 4.7 237 (2001) 26% 10% 11% 14% 10% Cotton Valley 17.9 109 54 606 16.7 830 (2004) 16% 22% 16% 45% 36% Mid-Continent 9.5 52 30 148 15.1 497 Cotton (2006) 9% 11% 9% 11% 21% Valley _____ ___ ___ _____ _____ Mississippi TOTALS 110.5 487 345 1,341 12.1 2,337 Gulf Coast Exploratory Potential (300 Bcfe) 2 : Devonian and Other Shales / CBM (~150 Bcfe) Gulf Coast Onshore (~100 Bcfe) Fayetteville Shale (~50 Bcfe) 1 Excludes effects of 2007 additions, extensions, discoveries, acquisitions and revisions and production; not reflective of downspacing or horizontal drilling in Cotton Valley and Mississippi 2 Exploratory potential (not included in “3P” volumes in the table) are PVOG estimates which have not been reviewed by its outside reserve engineering firm 3

Why Unconventional / Resource Plays? PENN VIRGINIA CORPORATION • Primary Remaining Domestic Resource � Lesser numbers of high-quality conventional drilling opportunities remain • Significant Reserves Associated With These Resource Plays • Generally Lower-Risk “Manufacturing” Plays Which Provide More Predictable Growth in Production and Reserves • Smaller Firms Can be Competitive • Today’s Gas Prices Support These Play Types With Attractive Returns • These Play Types are Often Associated With Legacy Assets Which Have Paid for Themselves Many Times Over � Little to no acreage acquisition costs • Provides Long-Term Inventory of Drilling Opportunities � Resource plays cover larger, typically blanketed land areas • Horizontal Drilling Application Has Improved Economics • These Play Types are Easier for Wall St. to Understand, Model and Value 4

Economic Sensitivities for PVOG by Major Play PENN VIRGINIA CORPORATION • PVOG’s Plays Generate Attractive After-Tax Returns Even at Prices Below Current Levels (current 12-month NYMEX strip $7.74 / MMBtu) • Hedges Protect the Downside Economics of Certain Plays (e.g., Cotton Valley, Hartshorne CBM) During “Shoulder” Periods 100 90 80 70 Rate or Return AFIT - % 60 Selma Chalk (Mississippi) 50 Appalachian HCBM t c Hartshorne HCBM (Mid-Continent) e p s o r P A 40 L . S Cotton Valley (East Texas) 30 20 10 9/24/07 Avg. NYMEX 12-Month Strip Price 0 4 5 6 7 8 9 10 NYMEX Gas Price (Flat) - $/MMBtu 5

Penn Virginia’s “Take Another Road” PENN VIRGINIA CORPORATION • Horizontal Multi-Lateral CBM in Appalachia – Very Unique and Economic � Higher cost, lower risk, but with a Gulf Coast production profile • Selma Chalk – Largest Chalk Producer in MS and That Will Increase With Horizontal Drilling Application • Very Active Cotton Valley Drilling Program in East Texas – 5 Rigs Drilling With a 6 th Rig to be Added Soon • Exposure to Multiple, Geographically Diverse Unconventional Play Types • Also Important to our Strategy is Some Exploration Exposure in South Louisiana and South Texas 6

Unconventional Play #1: Multi-Lateral HCBM PENN VIRGINIA CORPORATION Appalachian Basin - West Virginia • Snapshot Proved reserves: 156 Bcfe (32% of total) � Probable / possible reserves: 63 Bcfe (7% of total) � 343 future drilling locations in inventory (12/31/06) � � includes only HCBM (~50%) and non-shale (~50%) wells 2Q 2007 daily production: 34.3 MMcfe/d (31% of total) � Drilled 33 (14.7 net) 100% successful wells in 2006 � � Drilled 21 (11.6 net) 90% successful wells in 1H07 • Horizontal CBM (HCBM) � 2007 drilling forecast: up to 28 (14.2 net) locations planned AMI with CDX Gas (see map, gray area; blue dots) � Active acreage acquisition within AMI � Water disposal issues resolved in 1Q 2007 � � production ramping up (7% sequential growth 1Q-2Q07) • Devonian Shale Horizontal Devonian Shale 2007 drilling forecast: up to 5 (4.0 net) locations planned � Horizontal CBM Horizontal Devonian Shale play � Unconventional Tight Sand � 80,000 net prospective acres (see map, red dots) • Unconventional Tight Sand / Other 2007 drilling forecast: up to 22 (17.0 net) locations planned � Infield drilling on legacy mineral fee acreage � Recently announced divestiture of 13.3 Bcfe of proved reserves � in Virginia 7

Unconventional Play #1: Multi-Lateral HCBM PENN VIRGINIA CORPORATION Appalachian Basin - West Virginia • Play Economics Horizontal Well Spacing / Type: 400 - 800-acre / multi-lateral horizontal � Patterns Typical Gross Reserves: 0.7 - 1.4 Bcfe � Typical WI / NRI: 50% / 44% � Typical D&C CAPEX: $1.6 - $2.5 MM per well � Typical F&D Costs: $2.03 / Mcf - $2.60 / Mcf � Type Curve ROR: Flat $6 - $8 / MMBtu gas prices yield � 27% - 63% ROR (after-tax) 400 � Drilling History (‘02-2Q07): 111 gross wells drilled 350 Typical Depth: ~1,000 feet (800’ - 1,500’ range) 300 � Horizontal Development Other: Horizontal laterals have ranged � MMcf per Year 250 between 15K - 86K feet per well 200 Conventional with open-hole completions 150 Development 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year Appalachian HCBM Avg. Daily Production (MMcfe/d) 25 18 20 15 15 14 15 6 10 3 5 0 2003 2004 2005 2006 YTD07 Sep 07 MTD 8

Unconventional Play #2: Selma Chalk PENN VIRGINIA CORPORATION Mississippi • Snapshot Proved reserves: 121 Bcfe (25% of total) � � Probable / possible reserves: 60 Bcfe (7% of total) C o v i n g t o n J o n e s J e f f e r s o n 430 future drilling locations in inventory L a w D a v i s � L i n r e n c e c o l n Gwinville F r a n k l i n � excludes horizontals and 10-ac. spaced wells 11 Wells 2Q 2007 daily production: 20.2 MMcfe/d (18% of total) � Mississippi Drilled 80 (79.6 net) 100% successful wells in 2006 � Marion Drilled 41 (40.8 net) 100% successful wells in 1H07 � Lamar Pike Forrest Amite Walthall • Highlights Baxterville 2007 drilling forecast: up to 85 (82.2 net) locations planned � 60 Wells 2 horizontal test wells have been drilled - successful, with the � St. Helena Washington Baxterville well exceeding expectations and the Gwinville well Stone Pearl River meeting expectations Maxie Tangipahoa Additional horizontal drilling planned with up to 3 additional wells � 14 Wells Louisiana in 2H07 and a “ramp up” in 2008 Harrison Recently announced acquisition of 11.2 Bcfe of proved reserves � Livingston St. Tammany Hancock in Gwinville Selma Chalk (MS) Avg. Daily Production (MMcfe/d) 25 20 18 20 14 13 15 10 10 5 0 2003 2004 2005 2006 Q2 2007 9

Unconventional Play #2: Selma Chalk PENN VIRGINIA CORPORATION Mississippi • Play Economics Cumulative Horizontal Production Well Spacing / Type: 20-acre / vertical � Typical Gross Reserves: 0.375 - 0.400 Bcfe � 120 Typical WI / NRI: 100% / 80% � Cumulative MMcfe Produced Typical D&C CAPEX: $0.450 - $0.500 MM per well 100 � Typical F&D Costs: $1.15 / Mcf - $2.00 / Mcf � 80 Type Curve ROR: Flat $6 - $8 / MMBtu gas prices yield � 60 25% - 40% ROR (after-tax) 40 � Drilling History (‘99-2Q07): ~440 gross wells drilled Typical Depth: ~ 6,000 feet � 20 Other: Initial success with horizontal wells, � 0 particularly in Baxterville (see chart 0 28 56 84 112 Days at right) should allow for higher rates of returns and recoveries assuming implementation of horizontal develop- Cumulative Vertical PUD Production ment drilling program 10