**IPAA Oil & Gas Investment Symposium April 20, 2005**

**Forward-Looking Statements**

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*This information containspredictions, estimates and other forward-looking statements within the meaningof Section 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934. Although the company believes that its expectations arebased on reasonable assumptions, it can give no assurance that its goals willbe achieved.  Important factors that could cause actual results to differmaterially from those included in the forward-looking statements include thetiming and extent of changes in commodity prices for oil and gas, the need todevelop and replace reserves, environmental risks, drilling and operatingrisks, risks related to exploration and development, uncertainties about theestimates of reserves, competition, government regulation and the ability ofthe company to meet its stated business goals.*

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**Financial Highlights**

uRecord fourth quarter andfull year revenue

uRecord fourth quarter andfull year net income

uLong-term debt at yearend $21 million

udown from $53 million in2003

uTotal oil and gasproperty capital expenditures for year of $42.2 million  

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**Major  Sources and Uses of Cash**

uSources

uAdjusted Cash Flow* fromOperations- $62.5 million

uUses

uDrilling and development-$36.9 million

uUndeveloped properties-$4.6 million

uProducing properties-$0.7million

uLong term debt reduction-$32 million

*Adjusted Cash Flow is NetIncome plus non-cash charges (Depreciation, Depletion and Amortization andDeferred Income Taxes)  

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**Revenue**

u   Fourth Quarter Revenue of $72.6 million

u   $59.5 million in 2003

u   Revenue reflects higher O&G prices, increased production andmore drilling activity

u   Full year Revenue up to $290.7 million from $202.9 million in2003

**Net Income**

u2004 Net Income of $34.1million

u$22.6 million in 2003

u$2.05 per share vs. $1.39in 2003

uFourth Quarter Net Incomeof $8.3 million

u$8.0 million in 2003

u$0.49 per share in 2003and 2004 (diluted)

uSOX compliance and taxrate

**Adjusted Cash Flow**

u   Full year Adjusted Cash Flow of $62.5 million

u   Up from $45.6 million in 2003 

u   Fourth Quarter 2004 Adjusted Cash Flow of $14.6 million

u   Adjusted Cash Flow is  income before deferred income taxes,depreciation, depletion and amortization

u   Management believes Adjusted Cash Flow is a useful measure inestimating the value of the company's operations

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**2004 Operating Highlights**

uProduction 12.7 Bcfe, up21% year-to-year

uRocky Mountain Regionproduction increased 36.5% year-to-year (12 months)

uRocky Mountain Regionproduced 72% of total

u158 wells drilled in 2004vs. 111 in 2003

u97% drilling success on157 gross development wells

uAll wells were inColorado

u137 wells were drilledwith partnerships

uSand Wash Basinexploratory test drilled in fourth quarter

uTesting delayed by environmentalrestrictions

**Core Operating Areas**

**Production**

u   Full year 2004 production 12.7 Bcfe 

u   Up 22% from 10.4 Bcfe in 2003

u   82% natural gas

u   Fourth Quarter 2004 production of 3.17 Bcfe

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**Regional Production Trends**

u               Rocky Mountains region was 2004 growth area

u               Partnership development focus in 2005 will continue in RockyMountain Denver-Julesburg & Piceance Basins

u               Additional PDC activities underway on NECO properties andWattenberg Field

u               Rocky Mountain region produced 72% of production in 2004

u               Up from 63% in 2003

**Geographic Diversity**

u   Drilling and acquisition focus is Rocky Mountain Region

u   Limited development activity in other areas 

u   Selected Appalachian Basin behind pipe recompletions

u   No new activities planned for Michigan 

u   Will consider acquisitions in all areas

**Sustaining Growth**

uInvestments in 2004included:

uDrilling, Codellrecompletions, and other capital assets- $42 million

uDebt at year end- $21million

uTotal available creditover $80 million

uMany economicallyattractive development opportunities in Wattenberg and Grand Valley Fields

uResources to makeadditional acquisitions

uRecord program sales of2004 partnerships totaled $100 million up from $78 million

uPlan to offer up to $115million in 2005

uFirst partnership fullysubscribed in 2 days

uRocky Mountainsexploratory drilling program

uSand Wash Basin- secondwell underway

uOther wells planned inseveral areas

uDry holes are expensedunder successful efforts accounting

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**2005 Drilling Plans**

u   Rockies: Plan partnership drilling in Wattenberg & GrandValley Fields

u   Funds split equally between areas

u   About 3-4 Wattenberg wells per Piceance well

u   PDC will have a 20% interest in partnerships

u   Other development drilling planned in non-partnership areas (notin competition with partnerships)

u   Continuing NECO down spacing (~65 wells)

u   Exploratory and new areas

u   Sand Wash Basin- 1 drilled and 1 underway

u   Other opportunities

**Rocky Mountain**

**Prospect Areas**

**Bakken Shale**

**North Dakota**

| **Project**          | **State**        | **County**                          | **Well Depth Range (ft.)** | **Reservoir**          |
|----------------------|------------------|-------------------------------------|----------------------------|------------------------|
| **Legacy**           | **Colorado**     | **Moffat**                          | ** **                 | **Lance**              |
| **Coffepot Springs** | **Colorado**     | **Moffat**                          | **8,000 to 13,000**        | **Lewis / Fox Hills**  |
| **Sweetwater**       | **Wyoming**      | **Sweetwater**                      | ** **                 | **Almond / Mesaverde** |
| **Bakken Shale**     | **North Dakota** | **Mckenzie Montrail Williams Dunn** | **9000**                   | **Bakken Shale**       |

**IPAA Oil & Gas Investment Symposium April 20, 2005**