Petroleum Development Corporation (PDC) (NASDAQ GSM:PETD) is an independent oil and gas producer engaging in exploratory and development drilling, acquiring producing properties, and natural gas marketing operations. The Company's principal drilling and production operations are in the Rocky Mountains, Appalachian Basin, and Michigan. Approximately 83% of Petroleum Development Corporation's (PDC) production is natural gas, and almost 84% of total production is provided by the Rockies operating area. The Company's inventory of low risk development drilling locations, technical capabilities and financial strength have allowed it to generate substantial value for its shareholders over an extended period and should allow substantial additional growth in the future. PDC also seeks acquisitions of potential and producing oil and gas properties in any of its current operating areas and in other areas that meet its operating and financial criteria to further accelerate its growth.

Business Strategy:  PDC's primary goal is to create economic value for its shareholders by continuing to grow reserves, production, net income and cash flow. To increase these key performance measures, PDC maintains an active drilling program focusing on low-risk development of gas and oil reserves, acquires producing properties with development of gas and oil reserves, and includes limited exploratory drilling. PDC's acreage positions include: 1) Approximately 4,800 developable acres in Grand Valley Field in the Piceance Basin. With well spacing as low as 10 acres per well, average net reserves of about 1.2 Bcf per well net to the Company for new wells and development costs in the range of $1.75 to $2.00 per Mcf, the area presents an outstanding opportunity to increase Company's reserves and production. 2) The Company also has new operations in the Barnett Shale in Erath County, Texas. Two wells have been drilled and the Company plans to complete them and place them into production late in the first quarter or in the second quarter of 2008. 3)The Company has a legacy lease position in the Marcellus Shale "Fairway" in the Appalachian Basin, and acquired additional potential acreage in its acquisition of Castle Gas in Pennsylvania during late 2007.

Recent Developments:  PDC produced a total of 28 Bcfe during 2007 with a projected 38 Bcfe in 2008, an anticipated 36% increase from 2007 production levels and more than double 2006 production. The Company reported 2007 year-end proved reserves of 686 Bcfe, up from 323 Bcfe in 2006, or an increase of 112%. The increased production is primarily the result of increased drilling on the Company's inventory of development prospects in the Piceance and Denver-Julesburg Basins in Colorado. A portion of the production increase and many of the development opportunities in Wattenberg Field in the DJ Basin, resulted from acquisitions the Company completed using funds from the 2006 sale of a portion of its lease position in the Piceance Basin through tax deferred "Like-Kind Exchange" transactions. The Company's inventory of development opportunities provides a springboard for the Company to continue its dramatic growth in 2008 and beyond.