BRIDGEPORT, W.Va., Jan. 28 /PRNewswire-FirstCall/ -- Petroleum Development Corporation today announced that the Company has added to previously published crude oil commodity derivative positions to protect against possible price instability in future periods.
For the period from January 2009 through December 2009, the Company entered into Nymex based crude oil swaps at $84.90/Bbl and at $85.40/Bbl; each swap was for approximately one fourth of the current oil production from its Wattenberg Basin for a total of half of current production covered under the two swaps.
For the period from January 2010 through December 2010, the Company entered into Nymex based crude oil costless collars. Two sets of collars were set each for approximately one fourth of the current oil production from its Wattenberg Basin, one set with floors at $70.00/Bbl and calls at $102.25/Bbl and the other set with floors at $70.00/Bbl and calls at $103.00/Bbl. A total of half of current production level is covered under these collars.
The positions in effect as of today on the Company's share of production by area are shown in the following table.
Swaps Floors Ceilings (Fixed Prices) Monthly Monthly Monthly Month Quantity Floor Quantity Ceiling Volume Set Month Mmbtu/Bbls Price Mmbtu/Bbls Price Mmbtu/Bbls Price Colorado Interstate Gas (CIG) Based Derivatives (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 Jan-08 Apr 2008- Oct 2008 294,000 $6.54 Jan-08 Nov 2008- Mar 2009 272,600 $6.50 272,600 $10.15 Jan-08 Apr 2009- Oct 2009 272,600 $5.75 272,600 $8.75 NYMEX Based Derivatives (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 Jan-08 Nov 2008- Mar 2009 123,000 $7.50 123,000 $14.20 Jan-08 Apr 2009- Oct 2009 123,000 $6.75 123,000 $12.45 Panhandle Based Derivatives (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 Jan-08 Apr 2008- Oct 2008 120,000 $6.80 Jan-08 Nov 2008- Mar 2009 110,000 $6.75 110,000 $10.05 Jan-08 Apr 2009- Oct 2009 110,000 $6.00 110,000 $9.70 Colorado Interstate Gas (CIG) Based Derivatives (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 Jan-08 Apr 2008- Oct 2008 206,000 $6.54 Jan-08 Nov 2008- Mar 2009 199,800 $6.50 199,800 $10.15 Jan-08 Apr 2009- Oct 2009 199,800 $5.75 199,800 $8.75 Oil - NYMEX Based (Wattenberg Basin) Oct-07 Jan 2008- Dec 2008 29,070 $84.20 Jan-08 Jan 2009- Dec 2009 18,700 $84.90 Jan-08 Jan 2009- Dec 2009 18,700 $85.40 Jan-08 Jan 2010- Dec 2010 18,700 $70.00 18,700 $102.25 Jan-08 Jan 2010- Dec 2010 18,700 $70.00 18,700 $103.00 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. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.
Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly.
