Friday July 14, 10:03 am Eastern Time Company Press Release
biz.yahoo.com
Petroleum Development Corporation Announces
Record Production And Second Quarter Drilling Results
BRIDGEPORT, W.Va., July 14 /PRNewswire/ -- Petroleum Development Corporation (Nasdaq: PETD - news) today announced second quarter 2000 production of 1,486 Million cubic feet equivalent (MMcfe), an 89% increase from the 786 MMcfe produced in the second quarter of 1999. Production for the first six months increased by 83% to 2,836 MMcfe.
The company also announced that it had a 100% success rate for the 61 new wells drilled in the first half of 2000, adding 26 successful second quarter wells to the 35 successful wells drilled in the first quarter.
The increases in production reflect the increasing geographic diversification of the company. In the second quarter of 2000 the company's production was located in the Appalachian Basin (40%), in Michigan (37%), and in Colorado (23%). In contrast during the second quarter of 1999, 78% of the Company's production came from Appalachian wells, 22% from Michigan, and the Company had no Colorado production.
Steve Williams, President of Petroleum Development Corporation, said, ``After 30 years as an Appalachian Basin company, we are rapidly gaining a broader focus. About 80% of our Michigan production is from wells which were drilled over the past several years. Our two Colorado acquisitions account for about 75% of our Colorado production in the second quarter with new wells drilled at the end of 1999 and this year providing the rest of the increase.''
The shifting geographic focus is also reflected in the location of wells drilled during the first six months of 2000. Twenty-eight wells were drilled in Colorado, 16 in Michigan, and 17 in the Appalachian Basin. The company currently plans to continue its focus on Colorado drilling for the rest of 2000, with 70-80% of drilling investment there, primarily in Wattenberg Field north of Denver. Drilling is also planned for the Piceance Basin in Colorado and in Michigan. The Company does not anticipate drilling more than a handful of wells in the Appalachian Basin.
From July through October, approximately 90% of PDC's equity gas is hedged at an average NYMEX price of $2.88/MMbtu. From November through March an estimated 63% of PDC's gas production is currently hedged at an average NYMEX price of $3.39 per MMbtu. Additionally, another 22% of the winter gas is subject to a floor at a net price of $3.015 per MMbtu. Next summer, approximately 20% of PDC's estimated current production is hedged at $3.47 per MMbtu. The Company's oil production is unhedged.
The company used swaps to establish fixed price contracts and puts to establish the price floors. Actual sales prices received by the company will also be affected by basis differential and other factors.
Petroleum Development Corporation is a fast-growing regional independent energy company engaged primarily in the development, production and marketing of natural gas in the Appalachian Basin, the Rocky Mountains, and Michigan. |
