PDC Energy Reports 2010 Key Operating Results Including Proved Reserve Increase To 861 Bcfe; Reserve Replacement Of 585%; 2011 Capital Budget Of $233 Million And Production Of 44.9 Bcfe

DENVER, Feb. 9, 2011 (GLOBE NEWSWIRE) -- PDC Energy ("PDC" or the "Company") (Nasdaq:PETD) today reported 2010 key operating results which were in line with prior guidance. Additionally, the Company provided 2011 capital spending, drilling activity and production estimates. Further, PDC announced the sale of its entire non-core North Dakota property base, primarily located in Burke County, to a private buyer for $9.5 million.

2010 Overview

The Company's independent reserve engineers completed their estimate of PDC's year-end 2010 proved reserves in accordance with SEC guidelines. Total proved reserves as of December 31, 2010 increased 20% to 861 Bcfe, from 717 Bcfe total proved reserves reported as of December 31, 2009. Reserve replacement from all sources was 585% of 2010 production. ⁽¹⁾ Reserve values in 2010 were calculated utilizing an average realized natural gas price of $3.54/Mcf, an average realized oil price of $71.95/Bbl, and an average realized natural gas liquid ("NGL") price of $34.12/Bbl, versus a 2009 average realized price for natural gas of $3.17/Mcf and an average realized oil price of $54.64/Bbl. PDC's NGL value was included in its natural gas price utilized to value reserves in 2009. Realized prices reflect adjustments to NYMEX for energy content, quality and basis differentials.  Proved undeveloped reserves were 65% of total year-end 2010 proven reserves versus 59% of total proven reserves at year-end 2009.

The Company started reporting NGLs separately, beginning with its 2010 year-end reserve report. Separate disclosure of NGLs, which is a standard industry practice, will provide more transparency to PDC's production and reserve reporting.  The Company's 2010 year-end proved reserves of 861 Bcfe were comprised of approximately 77% natural gas, 7% NGLs, and 16% crude oil. Year-end 2009 proved reserves of 717 Bcfe were comprised of 85% liquid-rich natural gas and 15% crude oil.

Summary of Changes in Proved Reserves (Bcfe)
Beginning balance at December 31, 2009:	717.3
Drilling, improved well performance, pricing, and book NGLs	171.5
Acquisitions	54.4
Divestitures	(44.0)
Production	(38.6)
Ending balance at December 31, 2010:	860.6
(1) Reserve replacement represents proven reserve adds from all sources of 225.9 Bcfe divided by 2010 production of 38.6 Bcfe, with NGLs reported separately.

During 2010, PDC added 171.5 Bcfe of proved reserves through a combination of drilling, improved well performance, price revisions, and NGL bookings.  In addition, the Company added 54.4 Bcfe of proved reserves through acquisitions. The sale of Michigan assets, and the contribution of proved reserves to the PDC Mountaineer LLC joint venture (the "JV") formed with Lime Rock Partners ("LRP") in the fourth quarter of 2009, reduced proved reserves by 44.0 Bcfe.