Acquisitions and Divestitures

Evaluating strategic opportunities to grow reserves and production

PDC Energy actively evaluates acquisitions of both producing and undrilled oil and liquid-rich natural gas properties in order to grow reserves and production. These opportunities are located in each of the Company's active operating areas, as well as in other areas that meet the Company's operating and financial criteria.

Currently the Company's acquisition strategy focuses in three categories:

• Core area acquisitions are focused in the DJ Basin/Wattenberg Field-horizontal Niobrara, and the Appalachian Basin/Utica Shale and Marcellus Shale-West Virginia, on producing properties located near current PDC Energy operations.
• New basin acquisitions are concentrated in areas that align with the Company's strengths, where scale and repeatability offer growth opportunities; as an example, PDC's most recent entry into the Utica Shale play in Ohio. Primary production is a key criterion. The Company is not focused on Enhanced Oil Recovery ("EOR"), Gulf of Mexico, the Gulf Coast, or international plays.
• Joint Ventures formed to drill conventional assets or new shale plays offer a third area of focus. PDC Energy closely evaluates ventures offering 100+ drilling opportunities with up to $5 million net to PDC drilling and completion cost per well.

While the company is currently looking more closely at oil property acquisitions, sound economics will always be the key determining factor.