***NEWS******   FROM***

**Petroleum Development Corporation**

** **

**FOR IMMEDIATE RELEASE:**  April 5, 2005

**CONTACT:**  Steven R. Williams - (304)842-3597   http://www.petd.com

** **

**Petroleum Development Corporation acquires option onapproximately**

**35,000 acres in the Bakken Shale play in western NorthDakota;**

**Also adds to Natural Gas Commodity Options.**

Bridgeport, WestVirginia... Petroleum Development Corporation (NASDAQ/NMS PETD) todayannounced that it has acquired an option to develop approximately 35,000 acresof oil and gas leasehold located in McKenzie, Mountrail, Williams and DunnCounties, North Dakota.  The agreement contemplates the drilling of up to three(3) horizontal test wells targeting oil and gas reserves in the Bakken Shaleduring 2005.  The first test well is scheduled to be drilled early in the thirdquarter.  Horizontal development of the Bakken interval has been verysuccessful west of the project area in Richland County, Montana.  To date over125 successful horizontal wells have been drilled in Richland County andactivity is moving across the border into western North Dakota.  Currentlythere are ten (10) or more wells in various stages of progress targeting Bakkenreserves in the emerging North Dakota area of the play with more than a dozenoperators competing for acreage in the area.  

The Company has added to previously announced natural gasand oil commodities options positions to protect against possible priceinstability in future months. The Company purchased natural gas put options(floors) to provide downside protection. The costs of these puts are offset bythe sale of calls (ceilings). The strike prices for the floors and ceilingswere set at levels that allowed two floors to be purchased for each ceiling sold.

The Company set floors at $5.00 per million British thermalunit (Mmbtu) for the period from April 2006 through October 2006 forapproximately all of its of current production from its NECO (Northeasternproperties Colorado).  The ceilings were set at $8.62.  

|           |  |                                                             |            Floors              |                             |         Ceilings               |
|-----------|--|-------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| Month Set |  | Month                                                       | Monthly Quantity

Mmbtu                                                                                                                                | Contract

 Price  |                                                                                                                                              | Monthly Quantity

Mmbtu | Contract

 Price  |
|           |  | NYMEX Based Hedges - (Appalachian and Michigan Basins)      |
| 5/04      |  | Jan 2005 - Mar 2005                                         | 180,000                                                                                                                                                | $5.67                       |                                                                                                                                              | 90,000 | $7.00 |
| 2/04      |  | Apr 2005 - Oct 2005                                         | 122,000                                                                                                                                                | $4.28                       |                                                                                                                                              | 61,000 | $5.00 |
| 3/05      |  | Apr 2005 - Oct 2005                                         | 39,000                                                                                                                                                 | $5.75                       |                                                                                                                                              | 19,500 | $8.37 |
| 1/05      |  | Nov 2005 - Mar 2006                                         | 156,000                                                                                                                                                | $5.00                       |                                                                                                                                              | 78,000 | $8.50 |
| 3/05      |  | Apr 2006 -Oct 2006                                          | 78,000                                                                                                                                                 | $5.50                       |                                                                                                                                              | 39,000 | $7.40 |
|           |  |                                                             |                                                                                                                                                        |                             |                                                                                                                                              |  |  |
|           |  | Colorado Interstate Gas (CIG) Based Hedges (Piceance Basin) |
| 5/04      |  | Jan 2005 - Mar 2005                                         | 60,000                                                                                                                                                 | $5.04                       |                                                                                                                                              | 30,000 | $6.00 |
| 2/04      |  | Apr 2005- Oct 2005                                          | 33,000                                                                                                                                                 | $3.10                       |                                                                                                                                              | 16,000 | $4.43 |
| 3/05      |  | Apr 2005 - Oct 2005                                         | 38,000                                                                                                                                                 | $4.75                       |                                                                                                                                              | 19,000 | $8.12 |
| 1/05      |  | Nov 2005 - Mar 2006                                         | 60,000                                                                                                                                                 | $4.50                       |                                                                                                                                              | 30,000 | $7.15 |
| 3/05      |  | Apr 2006 - Oct 2006                                         | 42,000                                                                                                                                                 | $4.50                       |                                                                                                                                              | 21,000 | $7.25 |
|           |  |                                                             |                                                                                                                                                        |                             |                                                                                                                                              |  |  |
|           |  | Colorado Interstate Gas (CIG) Based Hedges (Wattenberg)     |
| 7/04      |  | Jan 2005 - Mar 2005                                         | 80,000                                                                                                                                                 | $5.00                       |                                                                                                                                              | 40,000 | $6.20 |
|           |  |                                                             |                                                                                                                                                        |                             |                                                                                                                                              |  |  |
|           |  | NYMEX Based Hedges (NECO)                                   |
| 7/04      |  | Jan 2005 - Mar 2005                                         | 150,000                                                                                                                                                | $5.32                       |                                                                                                                                              | - | -    |
| 2/04      |  | Apr 2005 - Oct 2005                                         | 150,000                                                                                                                                                | $4.26                       |                                                                                                                                              | 75,000 | $5.00 |
| 1/05      |  | Nov 2005 - Mar 2006                                         | 150,000                                                                                                                                                | $5.00                       |                                                                                                                                              | 75,000 | $8.45 |
| 4/05      |  | Apr 2006 - Oct 2006                                         | 150,000                                                                                                                                                | $5.00                       |                                                                                                                                              | 75,000 | $8.62 |

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* *

|      |  |                                |        |        |  |       |        |
|------|--|--------------------------------|--------|--------|--|-------|--------|
|      |  | Oil - NYMEX Based (Wattenberg) |
|      |  |                           | Bbls   |   |  | Bbls  |   |
| 8/04 |  | Jan 2005 - Dec 2005            | 15,000 | $32.30 |  | 7,500 | $40.00 |

About Petroleum Development Corporation

Petroleum Development Corporation (www.petd.com) is anindependent energy company engaged in the development, production and marketingof natural gas.  The Company operations are focused in the Rocky Mountains withadditional operations in the Appalachian Basin and Michigan. During the thirdquarter of 2004, the Company was added to the S&P SmallCap 600 Index.Additionally, PDC was added to the Russell 3000 Index of companies in 2003. PDC was named on the FSB: Fortune Small Business Magazine list of America's 100Fastest-Growing Small Companies in 2001 and 2002.  

Certainmatters discussed within this press release are forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995.Although PDC believes the expectations reflected in such forward- lookingstatements are based on reasonable assumptions, it can give no assurance that itsexpectations will be attained. Factors that could cause actual results todiffer materially from expectations include financial performance, oil and gasprices, drilling program results, drilling results, regulatory changes, changesin local or national economic conditions and other risks detailed from time totime in the Company's reports filed with the SEC, including quarterly reportson Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.

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** **

**103 East Main Street • P. O. Box26 • Bridgeport, West Virginia • Phone:  (304) 842-3597**