----

***Petroleum      Development Corporation***

***Forward      Looking Statements***

***Contact      Information***

***Company      Snapshot***

| v  Market                Cap (09/24/07)                                                                      | è   Approx.                $660 Million                                                                                     |
|------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| v  Proved                Reserves                                                                            | è   600+                Bcfe*                                                                                               |
| v  3-P                Reserves      (Proved,                Probable, and Possible) | è   1                TCFE+*                                                                                                 |
| v  Production                                                                                                | è   28                Bcfe (2007E)                                                                                          |
| v  Diluted                Average Shares Outstanding (2007)                                                  | è   14,860,000         Ø(Down                8% from                2006) |

|   | *                Reserves are based on internal Company estimates. Reserves included                in                probable and possible categories do not meet the                SEC definitions of proved reserves and may be subject to greater                risk of                recovery than reserves meeting SEC                requirements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***3P      Reserves****

| ·   | Proved                Undeveloped 27% |
|--------------------|---------------------------------------|

| ·   | Proved                Developed 33% |
|--------------------|-------------------------------------|

| ·   | Probable                21% |
|--------------------|-----------------------------|

| ·   | Possible                19% |
|--------------------|-----------------------------|

***Reserve*      Distribution ***

***Probable      and Possible Reserves****

| ·   | Probable                and possible reserves consist primarily                of: |
|--------------------|------------------------------------------------------------------------------------|

| o   | Grand                Valley offset locations |
|---------------|----------------------------------------------|

| o   | Wattenberg                field locations (5th                spot, rule                318A and 40 acre locations) |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| o   | Locations                identified by seismic and offsets to producing wells in NE                Colorado |
|---------------|-------------------------------------------------------------------------------------------------------------|

***Probable/Possible      Reserves****

| ·   | Piceance                Basin 57% |
|--------------------|-----------------------------------|

| ·   | NE                Colorado 19% |
|--------------------|--------------------------------|

| ·   | North                Dakota 5% |
|--------------------|--------------------------------|

| ·   | Wattenberg                Field 19% |
|--------------------|-------------------------------------|

***Estimated      Reserves* per Share***

***2007      Acquisition Summary***

| ·   | Use                of proceeds from 2006 lease sale |
|--------------------|-----------------------------------------------------|

| o   | $222                Million in acquisitions ($191 Million tax                deferred) |
|---------------|----------------------------------------------------------------------------------------|

| o   | 180                Bcfe (82% proved) 3P reserves |
|---------------|--------------------------------------------------|

| ·   | Acquisitions                primarily in existing operating                areas |
|--------------------|----------------------------------------------------------------------------------|

| o   | Wattenberg                Field, DJ Basin Colorado |
|---------------|----------------------------------------------------|

| o   | Appalachian                and Michigan Basins |
|---------------|------------------------------------------------|

***Key      2007 Activities***

| ·   | Active                development program |
|--------------------|-------------------------------------------|

| o   | On                existing and acquired properties |
|---------------|----------------------------------------------------|

| o   | 375                planned wells |
|---------------|----------------------------------|

| ·   | Compression                enhancement and mesa road completed in Piceance                Basin |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | Acquired                acreage and preparing to commence drilling in Barnett shale in late                2007 |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

***Core      Operating Areas***

| ·   | Rocky                Mountains |
|--------------------|--------------------------------|

| o   | 2006                Proved Reserves: 265.5 Bcfe |
|---------------|-------------------------------------------------|

| o   | 2006                Production: 14.1 Bcfe |
|---------------|-------------------------------------------|

| o   | 2007E                Production: 24 Bcfe |
|---------------|------------------------------------------|

| ·   | Michigan                Basin |
|--------------------|-------------------------------|

| o   | 2006                Proved Reserves: 21.2 Bcfe |
|---------------|------------------------------------------------|

| o   | 2006  Production:                1.4 Bcfe |
|---------------|-----------------------------------------------------|

| o   | 2007E                Production: 1.8 Bcfe |
|---------------|-------------------------------------------|

| ·   | Barnett                Shale |
|--------------------|------------------------------|

| o   | Exploratory                project Late 2007 drilling |
|---------------|-------------------------------------------------------|

| ·   | Appalachian                Basin |
|--------------------|----------------------------------|

| o   | 2006                Proved Reserves: 36.0 Bcfe |
|---------------|------------------------------------------------|

| o   | 2006                Production:  1.5 Bcfe |
|---------------|-----------------------------------------------------|

| o   | 2007E                Production: 2.6 Bcfe |
|---------------|-------------------------------------------|

***Increasing      Production ***

***Increasing      Estimated Proved Reserves ****

***Energy      Market Exposure ***

***CIG      Basis ***

***Enhancements      to 2007 Operational Plan***

| ·   | Increased                net Grand Valley wells |
|--------------------|-------------------------------------------------|

| ·   | Drilling                fewer net Wattenberg wells |
|--------------------|----------------------------------------------------|

| o   | Originally                modeled Codell only completions; actual wells are multi-zone completions                (J-sand,                Codell and Niobrara, as                appropriate) |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Increased                CAPEX in Codell refracs and Niobrara                recompletions |
|---------------|--------------------------------------------------------------------------------------------|

| ·   | Reduced                activity level in ND and reallocated                capital |
|--------------------|------------------------------------------------------------------------------------|

***2007      Actual vs. Production Forecast***

**2007      Production Forecast**

| ·   | 2007                Year End Estimates |
|--------------------|----------------------------------------|

| o   | Production                of 28 Bcfe |
|---------------|--------------------------------------|

| o   | Exit                Rate of 100 Mmcfe/d |
|---------------|-----------------------------------------|

| o   | Late                2Q2007 Garden Gulch compression facility start-up (Grand                Valley) |
|---------------|-----------------------------------------------------------------------------------------------------|

| §   | Gross                capacity increased from 17 to 50                Mmcf/d |
|--------------------|-----------------------------------------------------------------------------|

| §   | Reduced                line pressure in Grand Valley |
|--------------------|------------------------------------------------------|

| o   | Addition                of new wells throughout Rocky Mountain                Region |
|---------------|--------------------------------------------------------------------------------------|

***Production      Increase***

***Drilling      Activity***

***Grand      Valley Field, Piceance Basin, Colorado***

**2007      Plan**

| ·   | July                2007 net daily production 27 Mmcfe/d (2006 exit rate was 15.4                Mmcfe/d) |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Approximately                355 net locations on 10-acre                spacing |
|--------------------|----------------------------------------------------------------------------------|

| o   | 148                net PUD locations |
|---------------|--------------------------------------|

| o   | 207                remaining unproved locations |
|---------------|-------------------------------------------------|

| ·   | Drill                41 net wells |
|--------------------|-----------------------------------|

| o   | 50                Bcfe added by drilling |
|---------------|------------------------------------------|

| o   | $93                Million D&C cost |
|---------------|-----------------------------------------|

***Grand      Valley Achievements***

| ·   | Reduced                drilling time |
|--------------------|--------------------------------------|

| o   | Valley                wells drilled in 11 days (2007) vs 18 days                (2005) |
|---------------|----------------------------------------------------------------------------------------|

| o   | Mesa                top directional wells drilled in 15 days                (2007) |
|---------------|------------------------------------------------------------------------------------|

| ·   | Improved                Completion Design |
|--------------------|-------------------------------------------|

| o   | Slick                Water Fracs – cleaner, non-gelled fluid results in improved                EURS |
|---------------|------------------------------------------------------------------------------------------------------------|

| o   | 20%                increase of per-well EURs from 1.25 to 1.5                Bcfe |
|---------------|-----------------------------------------------------------------------------------|

| o   | Increase                IP rate from 820 to 1,100 Mcfd |
|---------------|--------------------------------------------------------|

***Wattenberg      Field, DJ Basin, Colorado***

| ·   | July                2007 net daily production 28 Mmcfe/d (2006 net exit rate 18.6                Mmcfe/d) |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | 3P                reserves include over 900 net undeveloped                locations: |
|--------------------|---------------------------------------------------------------------------------------|

| o   | 40                acre PUD locations |
|---------------|--------------------------------------|

| o   | Rule                318A locations |
|---------------|------------------------------------|

| o   | 5th                spot locations |
|---------------|-----------------------------------|

| ·   | 800                Codell and/or Niobrara refracs |
|--------------------|---------------------------------------------------|

***Wattenberg      Field, DJ Basin, Colorado***

**2007      Plan**

| ·   | Drill                108 net wells |
|--------------------|------------------------------------|

| o   | Add                estimated 34 Bcfe drilling reserves |
|---------------|--------------------------------------------------------|

| o   | Shifted                focus from single zone to multi-zone completions (J-sands, Codell,&                Niobrara) |
|---------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | 164                re-completions and re-fracs |
|--------------------|------------------------------------------------|

| o   | Some                booked and some reserve additions |
|---------------|-------------------------------------------------------|

| ·   | $86                Million D&C cost |
|--------------------|-----------------------------------------|

----

***NECO      Field Area, Eastern DJ Basin, Colorado***

| ·   | July                net daily production 11.6 Mmcfe/d (2006 net exit rate 8.5                Mmcfe/d) |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | 29,160                acres available for drilling |
|--------------------|----------------------------------------------------|

| ·   | 8                defined structures (3D and 2D                seismic) |
|--------------------|------------------------------------------------------------------------|

| ·   | 100                PUD locations |
|--------------------|----------------------------------|

| ·   | 200                potential locations |
|--------------------|----------------------------------------|

***NECO      Field Area, Eastern DJ Basin, Colorado***

**2007      Plan**

| ·   | Drill                141 wells, PDC 100%WI |
|--------------------|--------------------------------------------|

| ·   | 31                Bcfe added by drilling |
|--------------------|------------------------------------------|

| ·   | $33                Million D&C cost |
|--------------------|-----------------------------------------|

| ·   | Acquiring                50 square miles of additional 3D                seismic |
|--------------------|----------------------------------------------------------------------------------|

| o   | Potential                addition of 100-200 locations |
|---------------|--------------------------------------------------------|

***Appalachian      and Michigan Operation Areas***

|                                                  | **Appalachian**            | **Michigan**               |
|-------------------------------------------------------|----------------------------|----------------------------|
| **Operated                Wells**                     | 1365                       | 206                        |
| **2006  YE                Proved Reserves** | 36.0                Bcfe   | 21.2                Bcfe   |
| **2007                Acquisition Proved Reserves *** | 30.1                Bcfe   | 4.6                Bcfe    |
| **%                of 2006 YE Proved**                | 84%                        | 22%                        |
| **2007E                Production***                  | 2.6                Bcfe    | 1.8                Bcfe    |
| **Increase                from 2006***                | 86%                        | 20%                        |
| **July                2007 Net Daily Production**     | 6.2                Mmcfe/d | 4.5                Mmcfe/d |

***Continuing      Our Success***

| ·   | Low-risk                resource plays |
|--------------------|----------------------------------------|

| ·   | Strong                development inventory |
|--------------------|---------------------------------------------|

| o   | Piceance,                Wattenberg and Neco all have significant proved and unproved                potential |
|---------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Proven                multi-basin operator |
|--------------------|--------------------------------------------|

| o   | Barnett                shale activity planned |
|---------------|-----------------------------------------------|

| ·   | Strong                balance sheet |
|--------------------|-------------------------------------|

| ·   | Skilled                and experienced management and technical                team |
|--------------------|-------------------------------------------------------------------------------------|

***Petroleum      Development Corporation***