Penn Virgina cuts 2011 spending plan

Penn Virginia Corp., citing a weak environment for the natural gas industry, said today it will slash its capital spending by 40 percent next year compared with 2010.

That will bring the Radnor energy company's 2011 capital spending - mostly on development drilling and exploratory drilling - down to $290 million. Penn Virginia said it will focus development of natural gas sources on the Marcellus Shale in Pennsylvania, and on sites in Oklahoma and Texas.

The company expects natural gas production next year to grow by about 11 percent to between 50 billion cubic feet and 54 billion.

Penn Virgina is a natural gas and oil exploration and development company.    - Paul Schweizer