PDC Gas - Petroleum Development Corporation: Bridgeport, West Virginia

In 2007, PDC’s Appalachian properties played a more active role in the Company’s growth initiatives. The Company drilled 8 gross/net wells in the area in 2007 and produced approximately 2.7 Bcfe net to our interests. Approximately 11% of PDC’s oil and gas sales and roughly 15% of our total proved reserves are now generated from our Appalachian Basin properties. In addition, at the end of 2007 PDC had an interest in 2,027 gross wells, compared to 1,365 gross wells in 2006.

However, perhaps one of our most important accomplishments during the 2007 year was our continuing commitment to growth in the Appalachian Basin. In October 2007, PDC acquired a majority working interest in approximately 762 natural gas wells located in Southwestern Pennsylvania. The $54 million acquisition included 47 Bcfe of reserves net to the purchased interest (15.8 Bcfe net Proved Developed Producing, 31.2 Bcfe of net Proved and Probable Undeveloped Reserves) and associated pipelines, equipment, real estate and undeveloped acreage.

PDC operates 2,000 wells within the prolifi c Marcellus “Fairway” area. Pending the determination of leasehold rights, the Company has 10,000-40,000 acres in the high-growth “Fairway” area. Presently there is no value calculated in PDC’s 3P reserve numbers.