BRIDGEPORT, W.Va., March 4 /PRNewswire-FirstCall/ -- Petroleum Development Corporation today announced that the Company has reset and added to previously published natural gas commodity derivative positions to protect against possible price instability in future periods.
For the period from November 2008 through March 2009 the Company replaced the participating NYMEX collar that it previously set with a tighter participating NYMEX collar. A NYMEX based collar with a floor of $7.50/Mmbtu and a call of $14.20/Mmbtu was replaced by a NYMEX collar with a floor of $9.00/Mmbtu and a call of $11.32/Mmbtu. This collar covers approximately 34% of production in the Appalachian and Michigan basins.
For the period from April 2009 through October 2009 the Company entered into collars for approximately 33% of the production from each of the following basins: Appalachian, Michigan, NECO, Piceance and Wattenberg. For the Appalachian and Michigan basins, the Company set a NYMEX based participating collar with a $7.50/Mmbtu floor and a $13.25/Mmbtu call. For the NECO basin, the Company set a PEPL based collar with a $6.25/Mmbtu floor and an $11.75/Mmbtu call. For the Piceance and Wattenberg basins, the Company set a CIG based collar with a $5.75/Mmbtu floor and a $9.05/Mmbtu call. Considering previously set positions, approximately two thirds of current production in these areas is now covered by collars.
The positions in effect as of today on the Company's share of production by area are shown in the following table.
Floors Ceilings Swaps (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 11/07-03/08 100,000 $5.25 Jan-07 11/07-03/08 100,000 $5.25 100,000 $9.80 Feb-08 04/08-10/08 359,000 $7.05 Jan-08 04/08-10/08 294,000 $6.54 Jan-08 11/08-03/09 272,600 $6.50 272,600 $10.15 Feb-08 11/08-03/09 162,600 $7.00 162,600 $9.70 Feb-08 11/08-03/09 162,600 $8.18 Jan-08 04/09-10/09 272,600 $5.75 272,600 $8.75 Mar-08 04/09-10/09 267,850 $5.75 267,850 $9.05 NYMEX Based Derivatives (Appalachian and Michigan Basins) Dec-06 11/07-03/08 144,500 $7.00 Jan-07 11/07-03/08 144,500 $7.00 144,500 $13.70 Feb-08 04/08-10/08 123,000 $8.33 Feb-08 04/08-10/08 123,000 $8.58 Mar-08 11/08-03/09 123,000 $9.00 123,000 $11.32 Feb-08 11/08-03/09 72,400 $8.40 72,400 $13.05 Feb-08 11/08-03/09 72,400 $9.615 Jan-08 04/09-10/09 123,000 $6.75 123,000 $12.45 Mar-08 04/09-10/09 123,000 $7.50 123,000 $13.25 NYMEX Based Derivatives (Appalachian Acquisitions) Feb-08 03/08-02/11 90,000 $8.62 Panhandle Based Derivatives (NECO) Dec-06 11/07-03/08 70,000 $5.75 Jan-07 11/07-03/08 90,000 $6.00 90,000 $11.25 Feb-08 04/08-10/08 180,000 $7.45 Jan-08 04/08-10/08 120,000 $6.80 Jan-08 11/08-03/09 110,000 $6.75 110,000 $10.05 Feb-08 11/08-03/09 80,000 $7.25 80,000 $10.05 Feb-08 11/08-03/09 80,000 $8.44 Jan-08 04/09-10/09 110,000 $6.00 110,000 $9.70 Mar-08 04/09-10/09 130,000 $6.25 130,000 $11.75 Colorado Interstate Gas (CIG) Based Derivatives (Wattenberg Basin) Jan-07 11/07-03/08 120,000 $5.25 120,000 $9.80 Feb-08 04/08-10/08 281,000 $7.05 Jan-08 04/08-10/08 206,000 $6.54 Jan-08 11/08-03/09 199,800 $6.50 199,800 $10.15 Feb-08 11/08-03/09 112,400 $7.00 112,400 $9.70 Feb-08 11/08-03/09 112,400 $8.18 Jan-08 04/09-10/09 237,350 $5.75 237,350 $8.75 Mar-08 04/09-10/09 214,850 $5.75 214,850 $9.05 Oil - NYMEX Based (Wattenberg Basin) Oct-07 01/08-12/08 29,070 $84.20 Jan-08 01/09-12/09 18,700 $84.90 Jan-08 01/09-12/09 18,700 $85.40 Jan-08 01/10-12/10 18,700 $70.00 18,700 $102.25 Jan-08 01/10-12/10 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 reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.
