Petroleum Development Corp (PETD)

[OilStockReport]

PETD in competition with Samson in the B-J Basin?

PDC Energy (PETD) has 74,100 acres in the D-J Basin. PDC has an aggressive drilling program. In 2011, it is planning to drill 14 wells. Eight of these wells will be horizontal and in the Wattenberg core. It estimates each well will cost $3.5 million. PDC has one producing well which had an average IP of 625 Boe/d. In 2010, PDC garnered 89% of its total production from the Rocky Mountain region. It has 3-4 rigs working the Wattenberg/Niobrara. One additional rig is running in the Piceance.

The D-J Basin is important to PDC's ability to increase its liquids production. Wattenberg is in the D-J Basin, south of Silo Field. PDC invested $77 million in the Wattenberg last year, and it estimates 2011 cap ex will be $125 million. Estimates have Wattenburg wells producing 60% liquids. PDC's D-J Basin has the possibility of 738 net undeveloped locations (vertical wells only). There are 125 horizontal locations here as well. Estimates have an additional 649 refracs/recompletes. Of the 74,100 net acres in the D-J Basin, 67,900 net acres are in the Wattenberg core. Another 6,266 net acres are in the Krieger prospect. There are 22 horizontal locations in current Krieger leases. For 2011, PDC is planning:

4-5 Krieger Wells
9-10 Core Area Wells
14 Horizontal Drilling Wells