Petroleum Development Corporation Enters Into a Definitive Agreement with Castle Gas Company, Inc.
BRIDGEPORT, W.Va., Oct. 15 / -- Petroleum Development Corporation (NASDAQ:PETD) today announced it has entered into a definitive agreement to purchase a majority working interest in approximately 760 natural gas wells located in southwestern Pennsylvania, which are operated by Castle Gas Company, Inc. The purchase price is approximately $53,000,000 (Fifty Three Million Dollars) and includes approximately 47 Bcfe of reserves net to the purchased interest (15.8 Bcfe net Proved Developed Producing, 31.2 Bcfe of net Proved and Probable Undeveloped Reserves) and associated pipelines, equipment, real estate and undeveloped acreage. It is anticipated that the transaction will close by the end of October, with an effective date of October 1, 2007. The company anticipates that the acquisition will be immediately accretive to earnings and cash flow per share. Closing of the transaction is subject to satisfaction of normal and customary provisions for a purchase of this type and there is no guarantee that closing will occur. The reserves identified herein have not been included in any previous disclosure by PDC. Upon closing, PDC will be the operator on the majority of the properties. Current daily production net to the acquired interests is approximately 3,000 Mcfe per day. Tom Riley, President, comments, "This acquisition is our second in Appalachia this year and represents our continuing commitment to growth in this area. These assets are in our backyard and can be easily integrated into our existing operations. The undeveloped acreage represents a great opportunity to add low risk gas reserves through drilling over the next few years."
About Petroleum Development Corporation
Petroleum Development Corporation (http://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. During the third quarter of 2004, PDC was added to the S&P SmallCap 600 Index. Additionally, PDC was added to the Russell 3000 Index of Companies in 2003.
Source: Petroleum Development Corporation
CONTACT:Celesta Miracle of Petroleum Development Corporation,
+1-304-842-3597
Web site: http://petd.com/
