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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
January 27, 1997
PENN VIRGINIA CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
VIRGINIA
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(State or Other Jurisdiction of Incorporation)
0-753 23-1184320
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(Commission File No.) (I.R.S. Employer Identification No.)
100 Matsonford Road Suite 200, Radnor, PA 19087
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(Address of Principal Executive Offices)
19087
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(Zip Code)
(610) 687-8900
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(Registrant's Telephone Number, Including Area Code)
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ITEM 5. OTHER EVENTS
Penn Virginia Corporation issued a press release on January 23, 1997
with respect to a coal reserve acquisition and it's preliminary year
end results. The press release is filed as Exhibit 99 to this Form
8-K, and the text of the press release is incorporated by reference
herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) The following is filed as part of this Current Report on Form 8-K:
Exhibit Description
99 Press release dated January 23, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized on January 27, 1997.
PENN VIRGINIA CORPORATION
By:
/s/ Steven W. Tholen
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Steven W. Tholen
Vice President and
Chief Financial Officer
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EXHIBIT 99
PENN VIRGINIA CORPORATION
One Radnor Corporate Center, Suite 200, 100 Matsonford Road, Radnor, PA 19087
FOR IMMEDIATE RELEASE
CONTACT: Steven W. Tholen, Vice President and Chief Financial Officer
(610) 687-8900 Fax: (610) 687-3688
PENN VIRGINIA CORPORATION
ANNOUNCES COAL RESERVE ACQUISITION
AND PRELIMINARY YEAR END RESULTS
RADNOR, PA, JANUARY 23, 1997 -- Penn Virginia Corporation (NASDAQ: PVIR)
announced today that it has completed the acquisition of coal reserves and coal
reserve lease rights to approximately 10.5 million tons of high quality
metallurgical and steam coal reserves from a private seller. The acquisition
consists of the mineral rights to approximately 6.0 million tons of coal
reserves and the seller's existing lease rights to an additional 4.5 million
tons of coal reserves in the same operating area. The reserves are located in
Virginia near the Company's existing coal reserves. The purchase price was $7
million in cash.
Simultaneous with the closing of the acquisition, Penn
Virginia entered into a long-term lease contract with the seller for the mining
of the reserves. The seller is currently producing coal from the properties.
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Separately, Penn Virginia also announced it has now leased to
several operators approximately 90 percent of its 115 million tons of Virginia
coal reserves which were relinquished by Westmoreland Coal Company in May 1996.
Lease terms on the new leases are comparable to the former Westmoreland lease.
The Company expects most of the new operations will begin production this year.
Penn Virginia expects the remaining reserves to be leased to various operators
over the next several months.
Penn Virginia also announced that it sold approximately
600,000 shares (or 44 percent) of its common stock holdings in Westmoreland Coal
Company during the fourth quarter of 1996 and wrote down the unsold portion (of
which another 600,000 shares were sold in January 1997). The noncash effect of
the sale and writedown will be to lower 1996 pretax earnings by approximately
$3.2 million. The Company reported that based on preliminary results, which are
subject to audit, operating income for 1996 is expected to exceed $13 million,
as compared to $7.3 million reported in 1995. Net income for 1996 is expected to
exceed $12.2 million as compared to $10.1 million reported in 1995.
PVIR is an energy company engaged primarily in leasing of
mineral rights, collection of royalties, and development and production of oil
and natural gas. PVIR is headquartered in Radnor, PA.
* * * * *
This release includes forward-looking statements within the
meaning of the federal securities laws with respect to the nature and amount of
coal reserves, the timing of future leasing and production of the coal reserves
and estimated 1996 operating and net income. Certain factors discussed herein
and in the Company's filings with the Securities and Exchange Commission could
cause actual results to differ from those in these forward-looking statements,
and reference is made to such filings.
