In 2012, the Company's 50-50 joint venture in the Appalachian Basin ("PDCM") spud three horizontal Marcellus wells, completed six horizontal Marcellus wells and initiated certain midstream projects. The most recent three-well pad, which came on-line in November 2012, produced at an initial combined rate of approximately 19 MMcf per day.
James Trimble, Chief Executive Officer and President, stated, "Our 2012 reserve estimates were very positive and clearly demonstrate our continued transition towards a high quality, liquid-rich asset base. Our proved reserves increased 14% primarily due to the additions from our liquid-rich horizontal Niobrara program despite removing all of our Piceance, NECO and upper Devonian PUDs due to downward price-related revisions. Our liquids mix increased to 48% of proved reserves, which generated a PV-10 value of $1.7 billion, an increase of approximately $350 million compared to 2011. Reserve replacement was a very impressive 512% of production. Our 3P reserves increased over 70% in 2012 to approximately 3.6 Tcfe and were comprised of 51% liquids. In 2013, we plan to accelerate our drilling in the liquid-rich horizontal Niobrara and Codell zones in the Wattenberg Field with the addition of a third rig and expect to further develop and de-risk our liquid-rich Utica shale position with a one-rig program. Additionally, the Company also plans a one-rig program in the Marcellus Shale through our 50/50 joint venture. We continue to focus on horizontal drilling in our three key areas: Wattenberg, Utica Shale and West Virginia Marcellus."
Upcoming Investor Presentations and Analyst Day
PDC is scheduled to present at the Credit Suisse Energy Summit in Vail, Colorado on February 6, 2013 and at the OGIS Florida conference in Ft. Lauderdale, Florida on February 13, 2013. PDC also plans to host an analyst day in New York on Thursday, April 4, 2013. The event is scheduled to be held at the New York Marriott East Side, 252 Lexington Avenue at 49th Street, New York, NY 10017. Please see the Company's website at
for full details and webcast information. The related slide presentation is expected to be available on the Company's website immediately prior to the event.
About PDC Energy, Inc.
PDC Energy is a domestic independent energy company engaged in the exploration, development and production of crude oil, NGLs and natural gas. Its operations are focused primarily in the liquids-rich Wattenberg Field of Colorado, including the horizontal Niobrara and Codell plays, 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.