Petroleum Development Corporation Announces 2007 Results; Increases Reserves 112%,...

Petroleum Development Corporation Announces 2007 Results; Increases Reserves
112%, Production 65% Extends 2007 Form 10-K Due Date

BRIDGEPORT, W.Va., March 17 /PRNewswire-FirstCall/ -- Petroleum
Development Corporation (Nasdaq: PETD) today reported fourth quarter net
income of $8.2 million or $0.55 per diluted share and for the year ended
December 31, 2007, the company's net income was $33.2 million or $2.24 per
diluted share. The comparable numbers for 2006 were fourth quarter net income
of $8.0 million or $0.54 per diluted share and for the year 2006, the company
reported net income of $237.8 million or $15.11 per diluted share. The 2006
results included profits from the $328 million gain on sale of lease rights in
the Piceance Basin. Adjusted cash flow from operations (a non-GAAP measure
defined as cash flow from operations before changes in assets and liabilities,
additional information below) increased to $27.4 million in the fourth quarter
from $(3.3) million in 2006. Adjusted cash flow from operations was $95.6
million for the year ended 2007, compared to $29.8 million for the year ended
in 2006.
Year-end 2007 reflects record oil and gas production and sales revenue.
Total production for 2007 was 28.0 Bcfe compared to 16.9 Bcfe for 2006, a
65.0% increase. Each of the Company's three operating areas contributed to
the Company's growth. Oil and natural gas sales from the Company's producing
properties for 2007, were up 52.1% to $175.2 million compared to $115.2
million for the prior year, an increase of $60.0 million.
The Company also announced that it has filed a Form 12b-25 with the
Securities and Exchange Commission requesting an automatic 15 day filing
extension for the 2007 Form 10-K. The Company is currently awaiting an SEC
reply to its response to an SEC question relating to its Form 10-K for the
year ended December 31, 2006. The issue is whether the Company's partnership
drilling activities should be reported on a gross or net basis, and would have
no impact on the results reported here.
The Company reported fourth quarter net income of $8.2 million or $0.55
per diluted share and for the year ended December 31, 2007, the company's net
income was $33.2 million or $2.24 per diluted share. The comparable numbers
for 2006 were fourth quarter net income of $8.0 million or $0.54 per diluted
share and for the year 2006, the company reported net income of $237.8 million
or $15.11 per diluted share. The 2006 results included profits from the $354
million sale of lease rights in the Piceance Basin. Adjusted cash flow from
operations (a non-GAAP measure defined as cash flow from operations before
changes in assets and liabilities, see pages 2 and 8 for more information)
increased to $27.4 million in the fourth quarter from $(3.3) million in 2006.
Adjusted cash flow from operations was $95.6 million for the year ended 2007,
compared to $29.8 million for the year ended in 2006.
Year-end 2007 reflects record oil and gas production and sales revenue.
Total production for 2007 was 28.0 Bcfe compared to 16.9 Bcfe for 2006, a
65.0% increase. Each of the Company's three operating areas contributed to
the Company's growth. Oil and natural gas sales from the Company's producing
properties for 2007, were up 52.1% to $175.2 million compared to $115.2
million for the prior year, an increase of $60.0 million.
The Company also finished 2007 at a record-setting pace for new
development by adding 349 gross wells compared to 231 wells in 2006. The
Company drilled 338 development wells and 11 exploratory wells. Eleven of the
development wells and seven of the exploratory wells were dry holes. Three
remaining exploratory wells are pending final determination. This active
drilling program, combined with production from acquisitions made with
proceeds from the 2006 lease sale, are the driving force behind the dramatic
production increases in 2007.

Comparative Results Three Months Ended Year Ended
(In thousands, except per December 31, December 31,
share amounts) (unaudited) (unaudited)
2007 2006 2007 2006

Income from Operations $17,519 $11,358 $60,807 $381,802(1)
Net income $8,198 $7,963 $33,209(1) $237,772(1)
Basic earnings per common share $0.56 $0.54 $2.25(1) $15.18(1)
Diluted earnings per common
share $0.55 $0.54 $2.24(1) $15.11(1)

(1) Includes profits from sales of leaseholds

"Our 2007 results demonstrate the successful reinvestment of proceeds from
the 2006 lease sale and our low-risk development drilling program," said
Steven R. Williams, PDC's Chairman and CEO. We have a deep inventory of
prospects in these same areas that should enable us to further develop Company
reserves and production at rates in excess of most of our industry
competitors. A successful drilling program and optimizing our success in
reinvesting the lease sale proceeds back into our business are the primary
ways we will continue to increase shareholder value," added Williams.
Financial Results
Net income for the year ended 2007, declined significantly compared to the
respective 2006 annual results due to the $328 million pretax gain associated
with the July 2006 sale of leasehold to an unrelated party. The 2007 year-end
income includes a $33.3 million pretax gain on sales of leasehold recorded in
May 2007. The Company experienced a 7.9% reduction in realized pricing for
its oil and natural gas production from 2006 to 2007, which adversely impacted
results. The Company's exploratory expense increased from $8.1 million in 2006
to $23.6 million in 2007. As a result, net income for 2007 was $33.2 million
which includes $2.8 million of oil and gas price risk management net gain,
compared to 2006 net income of $237.8 million including a $9.1 million oil and
gas price risk management net gain. Depreciation, depletion and amortization
for the fourth quarter increased to $20.0 million from $11.2 million in 2006
due to the higher production, increased investment, and increased leasehold
acquisition costs. Adjusted cash flow from operations (defined as cash flow
from operations before changes in assets and liabilities, a non-GAAP measure)
increased to $95.6 million for the year ended 2007 compared to $29.8 million
in 2006. Fourth quarter adjusted cash flow from operations increased to $27.4
million from $(3.3) million for the fourth quarter of 2006. EBITDA (defined
as net income, plus interest (net), income taxes and DD&A, a non-GAAP measure)
decreased from $415.5 million in 2006 to $131.7 million in 2007. The
significant decline from 2006 to 2007 is due to the gain from the leasehold
sale included in the 2006 data. The fourth quarter 2007 EBITDA was $37.5
million and increase of 65.99% over the fourth quarter 2006 EBITDA of $22.6
million. The following tables show the calculation of adjusted cash flow from
operations and EBITDA for the fourth quarters and the year ended 2007 and
2006:

Reconciliation of Adjusted Cash Flow from Operations (a non-GAAP measure)
(In thousands)
Additional information below.

Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited)

Net Cash provided by
Operating Activities $93,104 $78,701 $60,304 $67,390
Changes in Assets and
Liabilities Related
to Operations (65,681) (81,996) 35,322 (37,554)
Adjusted Cash Flow from
Operations $27,423 $(3,295) $95,626 $29,836

Reconciliation of EBITDA (a non-GAAP measure)
(In thousands)
Additional information below.

Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited)

Net Income $8,198 $7,963 $33,209 $237,772
Interest, net 3,851 (2,545) 6,617 (5,607)
Income Taxes 5,470 5,940 20,981 149,637
Depreciation 19,987 11,243 70,844 33,735
EBITDA $37,506 $22,601 $131,651 $415,537

Operations
The focus of 2007 operations was on integrating and exploiting the
acquisitions made with the proceeds from the 2006 lease sale, and continuing
exploitation of the Company's lease position in its Rocky Mountain Region. We
focus our exploration, development and acquisition efforts in four geographic
regions:
Rocky Mountain Region: The Rocky Mountain Region includes our Colorado
and North Dakota operations. The region is further divided into four
operating areas; (1) Grand Valley Field, (2) Wattenberg Field, (3) NECO area
and (4) North Dakota area. The Rocky Mountain Region includes approximately
310,000 gross acres of leasehold and approximately 2,117 oil and natural gas
wells in which we own an interest (approximately 99% are operated by us).
Grand Valley Field, Piceance Basin, Garfield County, Colorado. We
currently own an interest in 225 gross, 102.9 net, oil and natural gas wells.
Our leasehold position encompasses approximately 7,800 gross acres with
approximately 3,900 net undeveloped acres remaining for development as of
December 31, 2007. We drilled 53 gross, 41.7 net, wells in the area in 2007
and produced approximately 8.2 Bcfe net to our interests. Development wells
drilled in the area range from 7,000 to 9,500 feet in depth and the majority
of wells are drilled directionally from multi-well pads ranging from two to
eight or more wells per drilling pad. The primary target in the area is gas
reserves, developed from multiple sandstone reservoirs in the Mesaverde
Williams Fork formation. Well spacing is approximately ten acres per well.
Wattenberg Field, DJ Basin, Weld and Adams Counties, Colorado. We
currently own an interest in 1,242 gross, 747.6 net, oil and natural gas
wells. Our leasehold position encompasses approximately 65,000 gross acres
with approximately 13,100 net undeveloped acres remaining for development as
of December 31, 2007. We drilled 158 gross, 106.1 net, wells in the area in
2007 and produced approximately 11.1 Bcfe net to our interests. Wells drilled
in the area range from approximately 7,000 to 8,000 feet in depth and
generally target oil and gas reserves in the Niobrara, Codell and J Sand
reservoirs. Well spacing ranges from 20 to 40 acres per well. Operations in
the area, in addition to the drilling of new development wells, includes the
refrac of Codell and Niobrara reservoirs in existing wellbores whereby the
Codell sandstone reservoir is re-stimulated or fraced a second time and/or
initial completion attempts are made in the slightly shallower Niobrara
carbonate reservoir.
NECO area, DJ Basin, Yuma County Colorado and Cheyenne County, Kansas. We
currently own an interest in 586 gross, 383.3 net, oil and natural gas wells.
Our leasehold position encompasses approximately 104,500 gross acres with
approximately 55,300 net undeveloped acres remaining for development as of
December 31, 2007. We drilled 123 gross, 115.0 net, wells in the area in 2007
and produced approximately 3.6 Bcfe net to our interests. Wells drilled in
the area range from approximately 1,500 to 3,000 feet in depth and target gas
reserves in the shallow Niobrara reservoir. Well spacing is approximately 40
acres per well. New drilling operations range from exploratory wells to test
undrilled, seismically defined, structural features at the Niobrara horizon to
development wells targeting known reserves in existing identified features.
North Dakota, Burke County. We currently own an interest in 13 gross, 4.6
net, oil and natural gas wells. We divested the majority of our Bakken
project acreage in late 2007. Our remaining leasehold encompasses two project
areas in Burke County and encompasses approximately 101,300 gross acres with
approximately 60,000 net undeveloped acres remaining for development as of
December 31, 2007. The eastern area acreage is prospective for development of
oil and gas reserves in the Nesson Formation. Nesson development wells are
approximately 6,000 feet in depth with single or multiple horizontal legs to
4,000 feet or more in length for a measured length of 10,000 feet or more per
leg. The westernmost acreage block is undeveloped and includes approximately
22,746 gross and 18,607 net acres. The western project targets exploratory
horizontal drilling to the Midale/Nesson Formation at depths of approximately
6,800 feet with a lateral leg component of up to 6,100. We drilled 3 gross,
1.6 net wells
Appalachian Basin: The Appalachian Basin includes our West Virginia
and Pennsylvania operations. We own an interest in approximately 2,027 gross,
1,501.6 net, oil and natural gas wells in West Virginia and Pennsylvania. We
drilled 8 gross/net wells in the area in 2007 and produced approximately 2.7
Bcfe net to our interests. The majority of the West Virginia leasehold is
developed on approximately 40 acre spacing. We are currently evaluating the
results of an infill drilling project on a limited portion of our developed
leasehold. Wells located in this area are approximately 4,500 feet deep and
target predominantly gas reserves in Devonian and Mississippian aged tight
sandstone reservoirs. The majority of our 10,000 net undeveloped acres was
acquired through our Castle acquisition in October 2007. Development wells in
this area target similar Devonian aged sands as in West Virginia, at depths
ranging from 3,000 to 4,500 feet.
Michigan Basin: We began operations in the Michigan Basin in 1997 with the
bulk of drilling activity occurring prior to 2002. We own an interest in
approximately 209 gross, 145.6 net, oil and natural gas wells that produced
1.7 Bcfe net to our interest in 2007. Wells in the area range from 1,000 to
2,500 feet in depth and produce gas from the Antrim Shale. We drilled 3
gross, net wells in 2007.
Fort Worth Basin, Erath County, Texas: We have an interest in
approximately 10,800 gross, 8,900 net acres, in northeastern Erath County.
The leasehold acreage is prospective for the development of oil and natural
gas reserves in the Barnett Shale formation at depths of approximately 5,000
feet. Development is typically with a horizontal component of approximately
3,000 feet or more, resulting in an approximate measured length of up to 8,000
feet or more in this area. As of December 31, 2007, we have drilled one
exploratory Barnett well to total depth. The exploratory well was pending
determination at December 31, 2007. Completion operations have not commenced
as we are awaiting the completion of a third party gas gathering
infrastructure.
Drilling Activity
The Company's drilling activities continue to be focused in its Rocky
Mountain Region. The Company drilled 349 wells during 2007, representing an
increase of 51% over the prior year. In addition to the drilling of the new
wells, the Company recompleted 165 wells in 2007 compared to 43 recompletions
in 2006.

Gross Wells Drilled

Year Ended
December 31, 2007

In
Area Productive Process Dry Total
Wattenberg 108 46 4 158
Grand Valley/Piceance 40 12 1 53
NECO 69 43 11 123
Michigan 2 1 0 3
Appalachian 7 1 0 8
North Dakota 1 0 2 3
Fort Worth Basin 0 1 0 1
Total 227 104 18 349

Net Wells Drilled

Year Ended
December 31, 2007

In
Area Productive Process Dry Total
Wattenberg 54.4 50.2 1.5 106.1
Grand Valley/Piceance 25.1 16.2 0.4 41.7
NECO 62.0 42.0 11.0 115.0
Michigan 2.0 1.0 0.0 3.0
Appalachian 7.0 1.0 0.0 8.0
North Dakota 0.2 0.0 1.4 1.6
Fort Worth Basin 0.0 1.0 0.0 1.0
Total 150.7 111.4 14.2 276.4

Oil and Gas Sales and Production
Production for the year ended December 31, 2007, increased 65.0% above
volumes for the same period in 2006. Oil and natural gas sales from the
Company's producing properties for 2007, were up 52.1% to $175.2 million
compared to $115.2 million for the prior year, an increase of $60.0 million.
The sales increase was related to increased volumes, primarily due to the
Company's acquisitions from the fourth quarter 2006 and first quarter 2007,
and was partially offset by lower average natural gas and oil sales prices.
The following table summarizes the production by area of operation as well as
the average sales price for the years 2007 and 2006, excluding derivative
gains or losses.
Twelve Months Ended December 31, Change
2007 2006 Amount Percent
Natural Gas (Mcf)
Appalachian Basin 2,711,300 1,451,729 1,259,571 86.8%
Michigan Basin 1,678,155 1,399,852 278,303 19.9%
Rocky Mountains 18,123,852 10,309,203 7,814,649 75.8%
Total 22,513,307 13,160,784 9,352,523 71.1%

Average Sales
Price $5.30 $5.91 $(0.62) (10.4)%

Oil (Bbls)
Appalachian Basin 5,490 1,837 3,653 198.9%
Michigan Basin 4,301 4,439 (138) (3.1)%
Rocky Mountains 900,261 625,119 275,142 44.0%
Total 910,052 631,395 278,657 44.1%

Average Sales
Price $61.56 $59.33 $2.23 3.8%

Natural Gas
Equivalents (Mcfe)*
Appalachian
Basin 2,744,240 1,462,751 1,281,489 87.6%
Michigan Basin 1,703,961 1,426,486 277,475 19.5%
Rocky Mountains 23,525,417 14,059,917 9,465,500 67.3%
Total 27,973,618 16,949,154 11,024,464 65.0%

Average Sales
Price $6.26 $6.80 $(0.54) (7.9)%

* One barrel of oil is equal to the energy equivalent of six Mcf of
natural gas.

With the drop in October 2007Rocky Mountain natural gas prices, we
curtailed our production in the Piceance and NECO areas of operations for
October 2007. Total net curtailment was approximately 350,000 Mcf for the
month of October 2007. We ceased the curtailment and returned production to
normal levels in November 2007 due to an increase in the November 2007 prices.
Current Hedging of Commodity Transactions
Because of the uncertainty surrounding natural gas and oil prices, we have
used various derivative instruments to manage some of the effect of
fluctuations in prices. Through December 2010, we have in place a series of
floors and ceilings, or "collars", on a portion of the natural gas and oil
production. Under the arrangements, if the applicable index rises above the
ceiling price, we pay the counterparty; however, if the index drops below the
floor, the counterparty pays us. Through February 2011, we have fixed price
swaps in place on a small portion of our natural gas production. During the
three months ended December 31, 2007, our average monthly natural gas and oil
volumes sold were 2.3 Bcf and 81,100 Bbls.
The following table sets forth our derivative positions in effect as of
December 31, 2007, and includes positions entered into subsequently through
March 3, 2008, on our share of production by area. The table does not include
positions related to RNG or derivative contracts we entered into on behalf of
our affiliated partnerships.

Floors Ceilings Swaps (Fixed Prices)
Monthly
Quantity Monthly Monthly
Gas-MMbtu Contract Quantity Contract Volume
Oil-Bbls Price MMbtu Price MMbtu/Bbls Price
Month
Set Months Covered
Colorado Interstate Gas (CIG) Based Hedges (Grand Valley Field, Piceance
Basin)
Dec-06 Jan 08-Mar 08 247,700 $5.25 - $- - $-
Jan-07 Jan 08-Mar 08 247,700 5.25 247,700 9.80 - -
Feb-08 April 08-Oct 08 - - - - 488,900 7.05
Jan-08 April 08-Oct 08 - - - - 410,700 6.54
Jan-08 Jan 08-Mar 09 371,600 6.50 371,600 10.15 - -
Feb-08 Jan 08-Mar 09 221,650 7.00 221,650 9.70 - -
Feb-08 Jan 08-Mar 09 - - - - 221,650 8.18
Jan-08 April 09-Oct 09 371,600 5.75 371,600 8.75 - -
Mar-08 April 09-Oct 09 365,050 5.75 365,050 9.05 - -

NYMEX Based Hedges - (Appalachian and Michigan Basins)
Dec-06 Jan 08-Mar 08 123,100 7.00 - - - -
Jan-07 Jan 08-Mar 08 123,100 7.00 123,100 13.70 - -
Feb-08 April 08-Oct 08 - - - - 123,100 8.33
Feb-08 April 08-Oct 08 - - - - 123,100 8.58
Jan-08 Nov 08-Mar 09 123,100 9.00 123,100 11.32 - -
Feb-08 Nov 08-Mar 09 72,400 8.40 72,400 13.05 - -
Feb-08 Nov 08-Mar 09 - - - - 72,400 9.62
Jan-08 April 09-Oct 09 123,100 6.75 123,100 12.45 - -
Mar-08 April 09-Oct 09 123,100 7.50 123,100 13.25 - -
Feb-08 Mar 08-Feb 11 - - - - 90,000 8.62

Panhandle Based Hedges (NECO)
Dec-06 Jan 08-Mar 08 70,000 5.75 - - - -
Jan-07 Jan 08-Mar 08 90,000 6.00 90,000 11.25 - -
Feb-08 April 08-Oct 08 - - - - 180,000 7.45
Jan-08 April 08-Oct 08 - - - - 120,000 6.80
Jan-08 Nov 08-Mar 09 110,000 6.75 110,000 10.05 - -
Feb-08 Nov 08-Mar 09 80,000 7.25 80,000 10.05 - -
Feb-08 Nov 08-Mar 09 - - - - 80,000 8.44
Jan-08 April 09-Oct 09 110,000 6.00 110,000 9.70 - -
Mar-08 April 09-Oct 09 130,000 6.25 130,000 11.75 - -

Colorado Interstate Gas (CIG) Based Hedges (Wattenberg)
Jan-07 Jan 08-Mar 08 123,650 5.25 123,650 9.80 - -
Feb-08 April 08-Oct 08 - - - - 314,750 7.05
Jan-08 April 08-Oct 08 - - - - 207,350 6.54
Jan-08 Nov 08-Mar 09 237,350 6.50 237,350 10.15 - -
Feb-08 Nov 08-Mar 09 131,150 7.00 131,150 9.70 - -
Feb-08 Nov 08-Mar 09 - - - - 131,150 8.18
Jan-08 April 09-Oct 09 237,350 5.75 237,350 8.75 - -
Mar-08 April 09-Oct 09 214,850 5.75 214,850 9.05 - -

Oil - NYMEX Based (Wattenberg/North Dakota)
Oct-07 Jan 08-Dec 08 - - - - 25,900 84.20
Jan-08 Jan 09-Dec 09 - - - - 16,150 84.90
Jan-08 Jan 09-Dec 09 - - - - 16,150 85.40
Jan-08 Jan 10-Dec 10 16,150 70.00 16,150 102.25 - -
Jan-08 Jan 10-Dec 10 16,150 70.00 16,150 103.00 - -

Non-GAAP Financial Measures (unaudited)
This release refers to "Adjusted cash flow from operations" and "EBITDA"
both of which are non-GAAP financial measures. Adjusted cash flow from
operations is the cash flow earned or incurred from operating activities
without regard to the collection or payment of associated receivables or
payables. The Company believes it is important to consider Adjusted cash flow
from operations separately, as the Company believes it can often be a better
way to discuss changes in operating trends in its business caused by changes
in production, prices, operating costs, and related operational factors,
without regard to whether the earned or incurred item was collected or paid
during that year. The Company also uses this measure because the collection
of its receivables or payment of its obligations has not been a significant
issue for the Company's business, but merely a timing issue from one period to
the next, with fluctuations generally caused by significant changes in
commodity prices. EBITDA is a non-GAAP measure calculated by adding net
income, interest (net), income taxes, and depreciation, depletion and
amortization for the period. Management believes EBITDA is relevant because it
is a measure of cash available to fund the Company's capital expenditures and
service its debt and is a widely used industry metric which allows
comparability of our results with our peers. Adjusted cash flow from
operations and EBITDA are not measures of financial performance under GAAP and
should be considered in addition to, not as a substitute for, cash flows from
operations, investing, or financing activities, nor as a liquidity measure or
indicator of cash flows reported in accordance with U.S. GAAP.
2008 Outlook
Increasing shareholder value through increased reserves, production and
cash flow is the primary focus of the Company's operating efforts. We expect
2008 to continue the trend of increasing production with the addition of new
wells. The foundation of our 2008 strategy is continued development drilling
in the Company's three core Colorado projects -- Grand Valley field,
Wattenberg field and NECO (northeast Colorado). Due to the impact of weather
and our well completion schedule, we expect production in the first six months
of 2008 to be relatively flat, with significant increases when winter weather
subsides, allowing completion activities on top of the mesa in Grand Valley
field. We expect total production for the year of about 38 Bcfe, which would
be a 36% increase from 2007 production. We also plan to complete our first two
Barnett Shale wells in Texas during the second quarter of 2008.
So far in 2008, energy prices have been at very high levels, and the
Company has added to its derivative positions several times to lock in the
positive impact of the strong energy market. Rocky Mountain area natural gas
prices were substantially lower than other regions of the country in the last
half of 2007. This resulted from local oversupply in the region, and
insufficient pipeline capacity to move natural gas to other markets. This
pricing situation, which affected almost 40% of the Company's production on an
energy equivalent basis (Mcfe), substantially improved when the Rockies
Express Pipeline was placed into service in December of 2007. When fully
completed in 2009, this new pipeline is planned to move 1.8 Bcfe per day from
the Rocky Mountain area to the Midwest United States, providing additional
market access for Rocky Mountain producers. Since the start-up of the new
line, the Company has seen improved prices relative to other market areas, and
the increased capacity will allow us to continue our development efforts in
the area. We continue to expect the Rocky Mountain region to be our primary
growth driver for the remainder of 2008.
Adequate capital is a key to our continuing efforts to increase the value
of the Company. Increasing production in combination with the strong energy
market will have a positive impact on cash flow from operations in the first
quarter and beyond. In February, the Company further strengthened its
liquidity though a $203 million bond offering. This capital will ensure that
the Company has adequate funds to execute its 2008 business plan, and makes
capital available to take advantage of possible acquisitions or other
opportunities.
The Company anticipates continuing a very active development drilling
schedule in 2008, approximately 360 gross (330 net) wells. The new wells, many
of which are being drilled on property obtained through the like-kind exchange
purchases made in 2006 and 2007, are expected to provide the additional
production required to reach the 2008 production target and to allow us to
continue to grow production and proved reserves in coming years as well.
Continuing development of the technical capabilities and accounting
processes, including a new information system that has gone "live" in the
first quarter of 2008, will result in a continuation of the higher level of
G&A expense in 2008. However through higher production the Company projects a
decrease in G&A per Mcfe in the coming year. These improved systems, processes
and an expanded staff will help the Company meet its reporting obligations in
a timely and accurate fashion.
Fourth Quarter 2007 Earnings Conference Call
The Company will host a conference call with investors to discuss fourth
quarter and year-end 2007 results. The Company invites you to join Steven R.
Williams, Chairman and CEO, and Richard W. McCullough, Vice Chair and
President, for a conference call on Wednesday, March 19, 2008, for a
discussion of the results.
What: Petroleum Development Corporation 2007 Earnings Conference Call`

When: Wednesday, March 19, 2008, at 1:00 p.m.. Eastern Time

Where: www.petd.com

How: Log on to the web address above or call (877) 407-8031
Replay Number: 877-660-6853 Account #: 286
Conference ID #: 276900
(Replay will be available approximately one hour after the
conclusion of the call)

Contact: Celesta Miracle, Petroleum Development Corporation,
(800) 624-3821 E-mail: petd@petd.com

About Petroleum Development Corporation
Petroleum Development Corporation (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.
Forward-Looking Statements
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact included
herein are forward-looking statements. 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 results,
regulatory changes, changes in federal or state tax policy, changes in local
or national economic conditions and other risks detailed from time to time in
PDC's reports filed with the Securities and Exchange Commission, including
quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports
on Form 10-K.
The SEC permits oil and gas companies to disclose in their filings with
the SEC only proved reserves, which are reserve estimates that geological and
engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions. The Company uses in this presentation the terms "probable" and
"possible" reserves, which SEC guidelines prohibit in filings of U.S.
registrants. Probable reserves are unproved reserves that are more likely than
not to be recoverable. Possible reserves are unproved reserves that are less
likely to be recoverable than probable reserves. Estimates of probable and
possible reserves which may potentially be recoverable through additional
drilling or recovery techniques are by nature more uncertain than estimates of
proved reserves and accordingly are subject to substantially greater risk of
not actually being realized by the Company. In addition, The Company's
production forecasts and expectations for future periods are dependent upon
many assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling activity,
which may be affected by significant commodity price declines or drilling cost
increases.
SOURCE Petroleum Development Corporation

Celesta Miracle of Petroleum Development Corporation, +1-800-624-3821,
+1-304-842-3597, petd@petd.com