PDC Gas - Petroleum Development Corporation: Bridgeport, West Virginia

Operations

Petroleum Development Corporation began operations as an oil and gas company in the Appalachian Basin in 1969. Since the beginning, our company headquarters has been located in Bridgeport, West Virginia. In our 39 years in the business, we have drilled wells in Ohio, Tennessee, Pennsylvania and West Virginia in the Appalachian region and continue to have producing wells in each of those states. Management is motivated to continue growing PDC. Over the past decade, the Company has expanded operations beyond the Appalachian Basin to gain access to better and more plentiful drilling opportunities. We firmly believe that PDC's expansion is best accomplished by leveraging the strategies and expertise we cultivated through past experience as driller and producer. As a result, we decided to focus on areas that meet several basic criteria:

1. Shallow wells, generally less than 15,000 feet in total depth.
2. Prospects with primarily natural gas production.
3. Prospects allowing us to drill a significant number of new wells for ourselves and our partners.
4. Prospects with relatively low dry-hole risk.
5. Areas with drilling, completion and operating characteristics similar to our prior operations.

Areas of Operations

We focus our exploration, development and acquisition efforts in three geographic regions:

     • Rocky Mountains
     • Appalachian Basin
     • Forth Worth Basin

During 2007, we generated approximately 84.1% of our production from Rocky Mountain Region wells, 9.8% of our production from Appalachian Basin wells, 6.1% of our production from Michigan Basin wells. Production operations have not commenced in the Fort Worth Basin. The majority of our undeveloped acreage is in the Rocky Mountain Region and our current drilling plans continue to be focused in that area.