PDC Energy Announces Closing of Permian Basin Asset Sale; Plans to Suspend Drilling in the Marcellus Shale; Updates 2012 Capital Budget and Confirms Previous Production Guidance of 53 Bcfe

DENVER, Feb. 29, 2012 (GLOBE NEWSWIRE) -- Petroleum Development Corporation (dba PDC Energy) ("PDC" or the "Company") PETD today announced the Company closed on the sale of its remaining Permian Basin assets.

The Company's Permian Basin assets were sold to Concho Resources Inc. CXO for a total sale price of approximately $184.4 million after customary closing adjustments. Proceeds from the sale will be used to reduce outstanding borrowings on the Company's revolving credit facility and provide liquidity to fund the Company's 2012 capital budget. The Company previously sold its non-core Permian assets in the fourth quarter of 2011 for $13.3 million, resulting in total proceeds from the sale of the Permian Basin assets of approximately $198 million. In 2011, the Permian Basin represented approximately 5%, or 2.5 billion cubic feet equivalent ("Bcfe"), of total production and 6%, or 65 Bcfe, of year-end proved reserves.

PDC also reported the Company's joint venture, PDC Mountaineer, LLC ("PDCM"), has elected to temporarily suspend drilling in the Marcellus Shale play due to the current depressed natural gas price environment. PDCM is currently drilling its third horizontal Marcellus well in 2012 and plans to drill one additional well prior to suspending drilling operations. PDCM also plans to proceed with the completion of seven wells over the next several months, including three wells that were drilled in 2011.

PDC's previously announced 2012 capital budget of $284 million will remain unchanged. The Company plans to reallocate the $12 million PDCM equity contribution portion of the capital budget to liquid-rich projects in the Wattenberg Field. The Company reconfirms its production guidance of 53 Bcfe for 2012.

James Trimble, President and Chief Executive Officer, commented, "The sale of our remaining Permian Basin assets enables us to pay down a significant portion of our revolving bank debt and strengthen our balance sheet as we focus on increasing liquids production in our core Wattenberg Field and de-risking our emerging Utica Shale position. Further, I wish to emphasize that we are very pleased with our West Virginia Marcellus program results of five to seven Bcf per well. Substantially all of our Marcellus acreage position is held by production, which provides us the flexibility to wait for improved gas pricing before recommencing our drilling program."

BMO Capital markets advised PDC Energy on the sale of its Permian assets to Concho Resources Inc.

PDC Fourth Quarter and Year-End 2011 Conference Call

PDC plans to host a conference call with investors to discuss fourth quarter and year-end 2011 results. The conference call is scheduled for 11:00 a.m. EST on Thursday, March 1, 2012. Conference call materials will be available on the Company's website, www.petd.com, at the time of the call.

PDC Analyst Day

PDC plans to host an analyst day in Boston on Tuesday, March 13, 2012. This event is scheduled to be held at the Boston Harbor Hotel, 70 Rowes Wharf, Boston, Massachusetts, 02110. The related slide presentation will be available on the Company's website immediately prior to the event.

Upcoming Conference Presentations

PDC is scheduled to present at the Howard Weil Energy Conference in New Orleans, Louisiana on Thursday, March 29, 2012. Please see the Company's website at www.petd.com for full details and webcast information.

About PDC Energy

PDC Energy is an independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused primarily in the Wattenberg Field of Colorado, including the horizontal Niobrara, the Marcellus Shale development in West Virginia and the Utica Shale in Ohio. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 ("Securities Act") and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act") regarding PDC's business, financial condition, results of operations and prospects. All statements other than statements of historical facts included in and incorporated by reference into this report are forward-looking statements. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein, which include statements regarding the Company's future financial and operating results; PDC's expected use of proceeds from the completed Permian divestitures; PDC's continuing efforts to seek a working interest partner in the Utica and de-risking such positions; PDC's expected 2012 capital budget,including anticipated liquidity and capital expenditures; 2012 drilling and operations plans, including plans to accelerate drilling in the liquid-rich horizontal Niobrara development in the Wattenberg Field; 2012 estimated natural gas and oil production and reserves, including expected 2012 production; plans to temporarily suspend drilling in the Marcellus Shale; plans to reallocate the PDCM capital budget to the Wattenberg Field; availability of capital future cash flows; anticipated liquidity, anticipated capital expenditures and management's strategies, plans and objectives. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this press release reflect the Company's good faith judgment, such statements can only be based on facts and factors currently known to it. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:

• changes in production volumes and worldwide demand, including economic conditions that might impact demand;
• volatility of commodity prices for natural gas, NGLs and crude oil;
• the impact of governmental fiscal terms and/or regulations, including changes in environmental laws, the regulation and enforcement related to those laws and the costs to comply with those laws, as well as other regulations;
• decline in the values of our natural gas and crude oil properties resulting in impairments;
• changes in estimates of proved reserves;
• inaccuracy of reserve estimates and expected production rates;
• the potential for production decline rates from our wells to be greater than expected;
• the timing and extent of our success in discovering, acquiring, developing and producing reserves;
• our ability to acquire leases, drilling rigs, supplies and services at reasonable prices;
• the timing and receipt of necessary regulatory permits;
• risks incidental to the drilling and operation of natural gas and crude oil wells;
• our future cash flow, liquidity and financial position;
• competition in the oil and gas industry;
• the availability and cost of capital to us;
• reductions in the borrowing base under our credit facility;
• the availability of sufficient pipeline and other transportation facilities to carry our production and the impact of these facilities on price;
• our success in marketing natural gas, NGLs and crude oil;
• the effect of natural gas and crude oil derivatives activities;
• the impact of environmental events, governmental responses to the events and our ability to insure adequately against such events;
• the cost of pending or future litigation;
• our ability to retain or attract senior management and key technical employees; and
• the success of strategic plans, expectations and objectives for future operations of the Company.

Further, PDC urges you to carefully review and consider the cautionary statements made in this press release, the Item 1-A Risk Factors in the 2010 annual report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, as amended on April 21, 2011 and May 18, 2011, and other subsequent filings with the SEC for further information on risks and uncertainties that could affect the Company's business, financial condition and results of operations, which are incorporated by this reference as though fully set forth herein. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. Other than as required under the securities laws, PDC undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.