Petroleum Development Corporation Adds to Natural Gas Derivatives

BRIDGEPORT, W.Va., Jan. 15 /PRNewswire-FirstCall/ -- Petroleum Development
Corporation (Nasdaq: PETD) today announced that the Company has added to
previously published natural gas commodities derivative positions to protect
against possible price instability in future periods.
For the period from November 2008 through October 2009, the Company
entered into participating collars at a cost of $.20/Mmbtu for approximately
one third of the production from each of the following basins: Piceance,
Wattenberg, NECO, Appalachian and Michigan. The following paragraphs detail
the pricing.
For the period from November 2008 through March 2009 for the Piceance and
Wattenberg Basins, the Company set floors at $6.50/Mmbtu and set calls at
$10.15/Mmbtu; these positions are tied to the Colorado Interstate Gas Index
(CIG). For the same period for the NECO Basin, the Company set floors at
$6.75/Mmbtu and set calls at $10.05/Mmbtu; these positions are tied to the
Panhandle Eastern Index (PEPL). For the same period for the Appalachian and
Michigan Basins, the Company set floors at $7.50/Mmbtu and set calls at
$14.20/Mmbtu; these positions are tied to the NYMEX.
For the period from April 2009 through October 2009 for the Piceance and
Wattenberg Basins, the Company set floors at $5.75/Mmbtu and set calls at
$8.75/Mmbtu; these positions are tied to the Colorado Interstate Gas Index
(CIG). For the same period for the NECO Basin, the Company set floors at
$6.00/Mmbtu and set calls at $9.70/Mmbtu; these positions are tied to the
Panhandle Eastern Index (PEPL). For the same period for the Appalachian and
Michigan Basins, the Company set floors at $6.75/Mmbtu and set calls at
$12.45/Mmbtu; these positions are tied to the NYMEX.
The positions in effect as of today on the Company's share of production
by area are shown in the following table.

Swaps
Floors Ceilings (Fixed Prices)
Monthly Monthly Monthly
Month Quantity Floor Quantity Ceiling Volume
Set Month Mmbtu Price Mmbtu Price Mmbtu/Bbls Price

Colorado Interstate Gas (CIG) Based Derivatives (Piceance Basin)
Dec-06 Nov 2007 -
Mar 2008 100,000 $5.25
Jan-07 Nov 2007 -
Mar 2008 100,000 $5.25 100,000 $9.80
May-07 Apr 2008 -
Oct 2008 197,250 $5.50 197,250 $10.35
Jan-08 Apr 2008 -
Oct 2008 294,000 $6.54
Jan-08 Nov 2008 -
Mar 2009 272,600 $6.50 272,600 $10.15
Jan-08 Apr 2009 -
Oct 2009 272,600 $5.75 272,600 $8.75

NYMEX Based Derivatives (Appalachian and Michigan Basins)
Dec-06 Nov 2007 -
Mar 2008 144,500 $7.00
Jan-07 Nov 2007 -
Mar 2008 144,500 $7.00 144,500 $13.70
Jan-07 Apr 2008 -
Oct 2008 144,500 $6.50 144,500 $10.80
May-07 Apr 2008 -
Oct 2008 120,000 $7.00 120,000 $13.00
Jan-08 Nov 2008 -
Mar 2009 123,000 $7.50 123,000 $14.20
Jan-08 Apr 2009 -
Oct 2009 123,000 $6.75 123,000 $12.45

Panhandle Based Derivatives (NECO)
Dec-06 Nov 2007 -
Mar 2008 70,000 $5.75
Jan-07 Nov 2007 -
Mar 2008 90,000 $6.00 90,000 $11.25
Jan-07 Apr 2008 -
Oct 2008 90,000 $5.50 90,000 $9.85
Jun-07 Apr 2008 -
Oct 2008 90,000 $6.00 90,000 $11.25
Jan-08 Apr 2008 -
Oct 2008 120,000 $6.80
Jan-08 Nov 2008 -
Mar 2009 110,000 $6.75 110,000 $10.05
Jan-08 Apr 2009 -
Oct 2009 110,000 $6.00 110,000 $9.70

Colorado Interstate Gas (CIG) Based Derivatives (Wattenberg Basin)
Jan-07 Nov 2007 -
Mar 2008 120,000 $5.25 120,000 $9.80
May-07 Apr 2008 -
Oct 2008 306,000 $5.50 306,000 $10.35
Jan-08 Jan 2008 -
Dec 2008 206,000 $6.54
Jan-08 Nov 2008 -
Mar 2009 199,800 $6.50 199,800 $10.15
Jan-08 Apr 2009 -
Oct 2009 199,800 $5.75 199,800 $8.75

Oil - NYMEX Based (Wattenberg Basin)
Oct-07 Jan 2008 -
Dec 2008 29,070 $84.20

About Petroleum Development Corporation
Petroleum Development Corporation (http://www.petd.com) is an independent
energy company engaged in the development, production and marketing of natural
gas and oil. Its operations are focused in the Rocky Mountains with additional
operations in the Appalachian Basin and Michigan. PDC is included in the S&P
SmallCap 600 Index and the Russell 3000 Index of Companies.
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Although PDC believes the expectations reflected in such forward-
looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. Factors that could cause
actual results to differ materially from expectations include financial
performance, oil and gas prices, drilling program results, drilling results,
regulatory changes, changes in local or national economic conditions and other
risks detailed from time to time in the Company's reports filed with the SEC,
including quarterly reports on Form 10-Q, current reports on Form 8-K and
annual reports on Form 10-K.
SOURCE Petroleum Development Corporation

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