Drilling and development activities contribute greatly to PDC's success. For our size, we manage one of the country's most active drilling programs, because we develop properties not just for ourselves but also for our Company-sponsored partnerships.

To understand how these operations affect the Company, it helps to think of them as a "service company" type activity. PDC sells interests in the wells it drills to other investors, primarily through publicly registered drilling partnerships sponsored by the Company. These Company-sponsored partnerships are sold through a nationwide network of NASD investment advisors. Currently more than 100 NASD Broker/Dealers have selling agreements in place to offer the PDC Drilling Program, and the partnerships have been sold in all 50 states. In 2004 and 2005 sales of partnership interests increased substantially as higher oil and natural gas prices piqued investor interest in direct energy investments.

PDC limits its sales of partnerships based on the prospect inventory and the services available in our drilling areas. We plan to offer $100,000,000 in 2006.