PDC Gas - Petroleum Development Corporation: Bridgeport, West Virginia

Petroleum Development Corporation began operations as an oil and gas company in the Appalachian Basin in 1969. Working from our company headquarters in Bridgeport, West Virginia we pursued our Appalachian heritage for nearly three decades drilling wells in Ohio, Tennessee, Pennsylvania and West Virginia in the Appalachian region. When we expanded our operations beyond the Appalachian Basin to gain access to better and more plentiful drilling opportunities, we focused on opportunities that leveraged the strategies and expertise we cultivated through our past experiences as a driller and producer. These areas met several basic criteria:

This photo compliments of the West Virginia Oil and Gas Museum

PDC Core Competencies

1. Shallow wells, generally less than 10,000 feet in total     depth.
2. Prospects with primarily natural gas production.
3. Prospects where we could drill a significant number of
    new wells for ourselves and our investing partners.
4. Prospects with relatively low dry-hole risk.
5. Areas with drilling, completion and operating
    characteristics similar to our prior operations.

In 1997, we began extended our operations to the Michigan Basin. Our target was the Antrim shale which is located at a depth of approximately 1,000 feet. Between 1997 and 2001, we drilled over 200 Antrim shale wells in Michigan and purchased another 13.

We began the second step of our geographical expansion in 1999, moving further west into the Rocky Mountain region. There our efforts have focused on two of Colorado's more prolific producing areas- Wattenberg Field and Grand Valley Field. Wattenberg Field is located in the DJ Basin north of Denver. With proven, predictable performance, it is an excellent match for our five prospect criteria.

Grand Valley Field is in the Piceance Basin, located northeast of Grand Junction in western Colorado. The Grand Valley wells can range in depth from about 7,000 feet to 10,000 feet and require large hydraulic fracture jobs for economic production. However, Piceance locations are an excellent match for PDC's increasing appetite for new drilling projects and for our criteria for new development areas.

Our most recent activities have been targeted at expanding our Rocky Mountain opportunities. Our increasing cash flow and demand for opportunities have created the need and ability to pursue an exploratory drilling program, with opportunities in Colorado, Kansas, Wyoming, and North Dakota. Each exploratory project offers an opportunity to open a new area for the Company's development activities.