BRIDGEPORT, W.Va., Nov. 6 /PRNewswire-FirstCall/ -- Petroleum Development Corporation today announced that the Company has added to previously announced natural gas and oil commodities derivative positions to protect against possible price instability in future periods.
For the period from January 2008 through December 2008, the Company entered into Nymex based crude oil swaps at $84.20/bbl for approximately 44% of current oil production from its DJ Basin. By entering into these swaps the Company has effectively locked in almost half of it's DJ crude revenue at a very attractive rate.
The positions in effect as of today on the Company's share of production by area are shown in the following table.
Monthly Quantity Swap Month Set Month Bbls Price Oil - NYMEX Based (Wattenberg Basin) Oct-07 Jan 2008 - Dec 2008 29,070 $84.20 Floors Ceilings Monthly Monthly Quantity Contract Quantity Contract Month Set Month Mmbtu Price Mmbtu Price Colorado Interstate Gas (CIG) Based Hedges (Piceance Basin) Dec-06 Nov 2007- Mar 2008 100,000 $5.25 Jan-07 Nov 2007- Mar 2008 100,000 $5.25 100,000 $9.80 May-07 Apr 2008- Oct 2008 197,250 $5.50 197,250 10.35 NYMEX Based Hedges - (Appalachian and Michigan Basins) Dec-06 Nov 2007- Mar 2008 144,500 $7.00 Jan-07 Nov 2007- Mar 2008 144,500 $7.00 144,500 $13.70 Jan-07 Apr 2008- Oct 2008 144,500 $6.50 144,500 $10.80 May-07 Apr 2008- Oct 2008 120,000 $7.00 120,000 $13.00 Panhandle Based Hedges (NECO) Dec-06 Nov 2007- Mar 2008 70,000 $5.75 Jan-07 Nov 2007- Mar 2008 90,000 $6.00 90,000 $11.25 Jan-07 Apr 2008- Oct 2008 90,000 $5.50 90,000 $9.85 Jun-07 Apr 2008- Oct 2008 90,000 $6.00 90,000 $11.25 Colorado Interstate Gas (CIG) Based Hedges (Wattenberg Basin) Jan-07 Nov 2007- Mar 2008 120,000 $5.25 120,000 $9.80 May-07 Apr 2008- Oct 2008 306,000 $5.50 306,000 $10.35 About Petroleum Development Corporation
Petroleum Development Corporation (http://www.petd.com/) is an independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused in the Rocky Mountains with additional operations in the Appalachian Basin and Michigan. During the third quarter of 2004, PDC was added to the S&P SmallCap 600 Index. Additionally, PDC was added to the Russell 3000 Index of Companies in 2003.
Forward-Looking Statements
Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included herein are forward-looking statements. Although PDC believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, drilling results, regulatory changes, changes in federal or state tax policy, changes in local or national economic conditions and other risks detailed from time to time in PDC's reports filed with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.
