Utica Development Plan
PDC plans to continue to de-risk and develop its existing 45,000 net acre position, and does not expect to materially increase its leasehold. The Company plans to finalize its mid-stream strategy for gas gathering and processing and complete its marketing arrangements to sell condensate, natural gas and NGLs by year-end 2012. PDC anticipates establishing a district field office in southeast Ohio in the first quarter of 2013. The Company's 2012 Utica capital program is expected to total approximately $95 million for drilling, completion and leasing activity. PDC anticipates a Utica capital budget of approximately $50 million in 2013 to drill, complete and connect four to five horizontal wells in Guernsey, northern Noble and northwest Washington Counties. The 2012 and 2013 drilling programs will test a substantial portion of the Company's leasehold.
James Trimble, President and Chief Executive Officer, stated, "We are extremely pleased with our Utica position and believe it is in the best long-term interest of our shareholders to develop our current position without a joint venture partner. Results from PDC and the industry continue to reinforce our position that the Utica could be one of the top tier economic shale plays in the US onshore. The high liquids mix from initial Utica well results further enhances our corporate strategy to transition towards more liquid-rich assets in our portfolio. We have formulated a Utica development plan and believe we have the financial capacity to execute this plan in 2012 and beyond."
Upcoming Industry Conference ParticipationPDC is scheduled to present at the Johnson Rice Energy Conference in New Orleans, Louisiana on Tuesday, October 2, 2012. Please see the Company's website at www.pdce.com for full details and webcast information. About PDC Energy, Inc. PDC is an independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused primarily in the Wattenberg Field of Colorado, including the horizontal Niobrara and Codell, the Utica Shale in Ohio and the Marcellus Shale development in West Virginia. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.