DENVER, June 15, 2011 (GLOBE NEWSWIRE) -- PDC Energy ("PDC" or the "Company") (Nasdaq:PETD) announced that at unitholder meetings today the Company received approval by the holders of a majority of limited partnership units held by non-affiliated investors of each of the three 2005 partnerships for the Company's proposed acquisition of each respective partnership. PDC purchased the 2005 partnerships for an aggregate amount of $43.3 million.
The 2005 partnerships consist of PDC 2005-A Limited Partnership, PDC 2005-B Limited Partnership, and the 2005 Rockies Region Private Limited Partnership. The wells included in these partnerships are located in PDC's Wattenberg Field and Piceance Basin. Current net production from the 2005 partnerships is about 4 MMcfe/d with estimated net reserves of 27 Bcfe comprised of about 67 percent natural gas.
Mr. James M. Trimble, President and Chief Executive Officer, noted, "We continue to successfully execute our partnership buyback program. This is our second tranche of buybacks and we are continuing with our announced goal to complete our partnership repurchases by the end of 2012."
About PDC Energy
PDC Energy is an independent energy company engaged in the development, production and marketing of natural gas and crude oil. Its operations are focused in the Rocky Mountains with additional operations in the Appalachian and Permian Basins. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding PDC's business, financial condition and results of operations. These statements and all other statements other than statements of historical facts included in and incorporated by reference into this press release are "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, plans, believes, seeks, estimates, projects and similar expressions or variations of such words are intended to identify forward-looking statements herein, which include statements regarding the Company's future financial and operating results, estimated natural gas and oil production and reserves, expected production growth trend throughout the year for the Company's horizontal programs in the Marcellus and Niobrara areas, operating, development and exploration plans, including the number of wells the Company plans to drill in 2011, the timing and closing, if consummated, of the mergers of the three 2005 partnerships, anticipated liquidity and capital expenditures, availability of capital and management's strategies, plans and objectives. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this release reflect the Company's good faith judgment, such statements can only be based on facts and factors currently known to PDC. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including known and unknown risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important risk factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:
- changes in production volumes and worldwide demand;
- volatility of commodity prices for natural gas and oil;
- changes in estimates of proved reserves;
- inaccuracy in reserve estimates and expected production rates;
- declines in the values of PDC's natural gas and oil properties resulting in impairments;
- the future cash flow, liquidity and financial position of the Company;
- the timing and extent of the Company's success in discovering, acquiring, developing and producing natural gas and oil reserves;
- PDC's ability to acquire leases, drilling rigs, supplies, services and personnel at reasonable prices;
- reductions in the borrowing base under the Company's credit facility;
- risks incident to the drilling and operation of natural gas and oil wells;
- future production and development costs;
- the availability of sufficient pipeline and other transportation facilities to carry PDC's production and the impact of these facilities on price;
- the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America;
- changes in environmental laws and the regulations and enforcement related to those laws;
- the impact of weather and the occurrence of disasters such as fires, floods and other events and natural disasters and governmental responses to such events;
- competition in the oil and gas industry;
- the success of prospect development and property acquisition by the Company;
- the success of the Company in marketing oil and gas;
- the effect of natural gas and oil derivative activities and plans;
- conditions in the capital markets;
- losses possible from pending or future litigation; and
- the success of strategic plans, expectations and objectives for future operations of the Company.
Further, PDC urges you to carefully review and consider the cautionary statements made in this press release, the Item 1-A Risk Factors in the 2010 annual report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, as amended on April 21, 2011 and May 18, 2011, and other subsequent filings with the SEC for further information on risks and uncertainties that could affect the Company's business, financial condition and results of operations, which are incorporated by this reference as though fully set forth herein. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. Other than as required under the securities laws, PDC undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward looking statements are qualified in their entirety by this cautionary statement.
CONTACT: Ron Wirth Director of Investor Relations 303-860-5830 firstname.lastname@example.org Marti Dowling Manager Investor Relations 303-831-3926 email@example.com