The companyâ€™s most attractive asset on the exploration and production side of its business is its undeveloped acreage in the Marcellus Shale in Appalachia. This unconventional shale gas play has attracted the attention of the industry over the last year. Petroleum Development Corp. has 52,900 acres of land under net lease that are prospective for the Marcellus Shale in both Pennsylvania and West Virginia.
The company has drilled four vertical wells here so far in 2009, and plans five more in 2009. The first horizontal well is planned for early 2010. The company already has a substantial operation in the region and is producing natural gas from zones other than the Marcellus Shale. This experience will help the company develop its acreage efficiently and effectively.
Petroleum Development Corp. also has properties in the Rocky Mountain Area, where it has acreage in the Piceance Basin and the Wattenberg Field. It also has a small operation in the Michigan Basin. The company had reserves of 753 Billion cubic feet equivalent (Bcfe) at the end of 2008, and expects to produce an estimated 43.4 Bcfe in 2009.