Penn Va. to halve drilling expenditure in ’09

Penn Virginia Corp. said today that, in fiscal 2009, it expects to spend $225 million - about half of what was to be spent in fiscal 2008 - for exploratory drilling and completion.

Further, the Radnor-based natural-resources company said it expects a 10 percent to 15 percent increase in its production of natural gas equivalent.

Shares closed today at $28, up 50 cents (1.82 percent).

Meanwhile, Penn Virginia Resource Partners L.P., which is mostly controlled by Penn Virginia Corp., said today that it expects lower prices for natural gas to put a damper on royalties in its oil and gas segments for financial year 2009.

Estimated other revenues for the coal and natural resource management segment are expected to be $24.5 million to $26.5 million, a decrease of about 4 percent to 11 percent from the mid-point of full-year 2008 guidance of $27.5 million.

The Radnor-based manager of coal properties and operator of a natural-gas collection and distribution business, which is in its third financial quarter, said in offering 2009 guidance that it expects coal production to increase slightly: from a 2008 guidance of 33.0 and 33.5 million tons to between 33.5 and 35.0 million tons.

Coal royalties, per ton, are expected in 2009 to be from $3.50 to $3.65, as compared with a full-year 2008 guidance range of $3.55 to $3.65.

Company shares closed up 3.45 percent (38 cents).