| ·   | The Company reported a net loss from continuing operations for the quarter ended June 30, 2010 of $0.3 million, or $0.02 per diluted share, compared with a June 30, 2009 quarterly net loss from continuing operations of $33.3 million, or $2.25 per diluted share. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company separately reported as discontinued operations the results of operations related to its Michigan assets.  On July 30, 2010, PDC completed the exchange of its Michigan assets with a private purchaser for producing properties in the Permian basin of Texas.  The Company reported a loss from discontinued operations for the quarter ended June 30, 2010 of $2.4 million, or $0.13 per diluted share compared with June 30, 2009 quarterly income from discontinued operations of $0.2 million, or $0.01 per diluted share. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net loss attributable to shareholders, for the second quarter 2010 was $2.7 million, or $0.15 per diluted share, compared to a net loss of $33.1 million, or $2.24 per diluted share in the same 2009 period. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Second quarter 2010 results reflect a 12% increase in average realized sales prices (including realized gains on derivatives), to $6.66 per Mcfe compared to $5.97 per Mcfe for the second quarter 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted cash flow from operations, a non-GAAP financial measure defined below, for the second quarter 2010 was $28.8 million, compared to $37.7 million for the second quarter 2009.  Adjusted cash flow from operations for the second quarter 2010 excludes a $25.9 million federal tax refund related to 2009 net operating loss carry backs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | G&A expenses decreased 33% to $9.9 million for the second quarter 2010 compared to the same 2009 period. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | The Company drilled 44.1 total net wells during the second quarter 2010, compared to 19.7 total net wells drilled in the same 2009 period. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Second quarter 2010 production of 9.0 Bcfe, including 0.4 Bcfe attributable to Michigan assets, was in line with guidance and relatively unchanged from first quarter 2010 production of 9.1 Bcfe. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company’s liquidity at June 30, 2010 improved to $268.7 million, compared to $238.2 million at December 31, 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| Wells Drilled               |                                                                |   |                                                    |                      |                                                                |   |                                                                |   |                                                                |   |                                                    |   |                                                                |   |                                                |
|-----------------------------|---------------------------------------------------------------------|--------|---------------------------------------------------------|---------------------------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------|--------|---------------------------------------------------------------------|--------|-----------------------------------------------------|
|                        |                                                                |   |                                                    |                      |                                                                |   |                                                                |   |                                                                |   |                                                    |   |                                                                |   |                                                |
|                        | Three Months Ended June 30,                                         |   |                                                    | Six Months Ended June 30, |                                                                |   |
|                        | 2010                                                                |   |                                                    |                      | 2009                                                                |   |                                                                |   | 2010                                                                |   |                                                    |   | 2009                                                                |   |                                                |
|                        | Gross                                                               |   | Net                                                     |                      | Gross                                                               |   | Net                                                                 |   | Gross                                                               |   | Net                                                     |   | Gross                                                               |   | Net                                                 |
| Rocky Mountain Region:      |                                                                |   |                                                    |                      |                                                                |   |                                                                |   |                                                                |   |                                                    |   |                                                                |   |                                                |
| Wattenberg                  |          40            |   |       30.0                |                      |          24            |   | 19.7                                                                |   |          78            |   |       64.2                |   |          42            |   | 37.5                                                |
| Piceance                    |          12            |   |       12.0                |                      |          -             |   |          -             |   |          16            |   |       16.0                |   |            1 |   |         1.0 |
| NECO                        |            - |   |          - |                      |          -             |   |          -             |   |            - |   |          - |   |            5 |   |         2.5 |
| North Dakota                |            1 |   |         0.4     |                      |            - |   |            - |   |            2 |   |         0.5     |   |            1 |   |         0.5 |
| Total Rocky Mountain Region |          53            |   |       42.4                |                      |          24            |   | 19.7                                                                |   |          96            |   |       80.7                |   |          49            |   | 41.5                                                |
| Appalachian Basin           |            3 |   |         1.7     |                      |          -             |   |          -             |   |            4 |   |         2.3     |   |            3 |   |         3.0 |
| Total Wells Drilled         | 56                                                                  |   | 44.1                                                    |                      | 24                                                                  |   | 19.7                                                                |   | 100                                                                 |   | 83.0                                                    |   | 52                                                                  |   | 44.5                                                |

| Average Costs Related to Oil and Gas Operations (per Mcfe)                     |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |
|--------------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                                           |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |   |   |
|                                                                           |                                                                    | Three Months Ended                                                      |                                                                    | Six Months Ended                                                        |
|                                                                           |                                                                    | June 30,                                                                |                                                                    |                                                                    |                                                                    | June 30,                                                                |   |   |
|                                                                           |                                                                    | 2010                                                                    |                                                                    | 2009                                                                    |                                                                    | 2010                                                                    |   | 2009 |
| Average lifting costs (lease operating expense, exclusive of production taxes) |  $          1.24 |                                                                    |  $          0.64 |                                                                    |  $          1.14 |                                                                    |  $          0.78 |
| Exploration expense (less impairment and amortization)                         |                                                                    |  $          0.38 |                                                                    |  $          0.24 |                                                                    |  $          0.53 |   |  $          0.35 |
| DD&A (oil and gas properties only)                                         |                                                                    |  $          2.94 |                                                                    |  $          2.89 |                                                                    |  $          2.95 |   |  $          2.91 |
|                                                                           |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |                                                                    |   |   |

|                           | Three Months Ended                                                                                                                          |   |       |   | Six Months Ended |   |                                                                                                                                        |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                           | June 30,                                                                                                                                    |   |       |   |             |   | June 30,                                                                                                                                    |   |   |   |   |
|                           |                                                                                                                                        |   |       |   | Percentage       |   |                                                                                                                                        |   |   |   | Percentage |
|                           | 2010                                                                                                                                        |   | 2009       |   | Change           |   | 2010                                                                                                                                        |   | 2009 |   | Change |
| Production                     |                                                                                                                                        |   |       |   |             |   |                                                                                                                                        |   |   |   |   |
| Natural gas (Mcf)              |                                                                                                                                        |   |       |   |             |   |                                                                                                                                        |   |   |   |   |
| Rocky Mountain Region          | 6,031,678                                                                                                                                   |   | 7,724,334  |   | -21.9%           |   | 12,306,896                                                                                                                                  |   | 15,512,368 |   | -20.7% |
| Appalachian Basin              | 570,733                                                                                                                                     |   | 1,027,199  |   | -44.4%           |   | 1,201,243                                                                                                                                   |   | 2,002,880 |   | -40.0% |
| Other                          | 23,778                                                                                                                                      |   | 35,219     |   | -32.5%           |   | 35,870                                                                                                                                      |   | 75,948 |   | -52.8% |
| Total                          | 6,626,189                                                                                                                                   |   | 8,786,752  |   | -24.6%           |   | 13,544,009                                                                                                                                  |   | 17,591,196 |   | -23.0% |
| Oil (Bbls)                     |                                                                                                                                        |   |       |   |             |   |                                                                                                                                        |   |   |   |   |
| Rocky Mountain Region          | 328,990                                                                                                                                     |   | 339,575    |   | -3.1%            |   | 623,863                                                                                                                                     |   | 680,758 |   | -8.4% |
| Appalachian Basin              | 1,125                                                                                                                                       |   | 2,199      |   | -48.8%           |   | 1,847                                                                                                                                       |   | 3,903 |   | -52.7% |
| Other                          |                        - |   | 336        |   | -100.0%          |   |                        - |   | 510 |   | -100.0% |
| Total                          | 330,115                                                                                                                                     |   | 342,110    |   | -3.5%            |   | 625,710                                                                                                                                     |   | 685,171 |   | -8.7% |
| Natural gas equivalents (Mcfe) |                                                                                                                                        |   |       |   |             |   |                                                                                                                                        |   |   |   |   |
| Rocky Mountain Region          | 8,005,616                                                                                                                                   |   | 9,761,784  |   | -18.0%           |   | 16,050,092                                                                                                                                  |   | 19,596,916 |   | -18.1% |
| Appalachian Basin              | 577,485                                                                                                                                     |   | 1,040,393  |   | -44.5%           |   | 1,212,326                                                                                                                                   |   | 2,026,298 |   | -40.2% |
| Other                          | 23,778                                                                                                                                      |   | 37,235     |   | -36.1%           |   | 35,852                                                                                                                                      |   | 79,008 |   | -54.6% |
| Total                          | 8,606,879                                                                                                                                   |   | 10,839,412 |   | -20.6%           |   | 17,298,270                                                                                                                                  |   | 21,702,222 |   | -20.3% |
|                           |                                                                                                                                        |   |       |   |             |   |                                                                                                                                        |   |   |   |   |

| Adjusted Cash Flow from Operations                    |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
|-------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|
|                                                  |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
|                                                  |   | Three Months Ended                                                                                |   | Six Months Ended                                                                                  |
|                                                  |   | June 30,                                                                                          |   |                                                                                              |   | June 30,                                                                                          |    |                                                                    |
|                                                  |   | 2010                                                                                              |   | 2009                                                                                              |   | 2010                                                                                              |    | 2009                                                                    |
| Net cash provided by operating activities             |   |  $      44,026                                                 |   |  $      24,780                                                 |   |  $      95,371                                                 |    |  $      60,659                       |
| Changes in assets and liabilities                     |   | (15,176)                                                                                          |   | 12,885                                                                                            |   | (17,192)                                                                                          |    | 16,747                                                                  |
| Adjusted cash flow from operations                    |   |  $      28,850                                                 |   |  $      37,665                                                 |   |  $      78,179                                                 |    |  $      77,406                       |
|                                                  |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
|                                                  |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
|                                                  |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
| Adjusted Net Income (Loss) from Continuing Operations |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |
|                                                  |   |                                                                                              |   |                                                                                              |   |                                                                                              |    |                                                                    |
|                                                  |   | Three Months Ended                                                                                |   | Six Months Ended                                                                                  |
|                                                  |   | June 30,                                                                                          |   |                                                                                              |   | June 30,                                                                                          |    |                                                                    |
|                                                  |   | 2010                                                                                              |   | 2009                                                                                              |   | 2010                                                                                              |    | 2009                                                                    |
| Net income (loss) from continuing operations          |   |  $         (330)                                |   |  $    (33,298)                                                           |   |  $      22,851                                                 |    |  $    (39,601)                                 |
| Unrealized (gain) loss on derivatives, net            |   |          (4,211)                                     |   |          47,574                                      |   |        (24,701)                                                |    |          60,762            |
| Provision for underpayment of gas sales               |   |                 - |   |                 - |   |                 - |    |            2,581 |
| Tax effect of above adjustments                       |   |            1,567                           |   |        (18,223)                                                |   |            9,271                           |    |        (24,578)                      |
| Adjusted net income (loss) from continuing operations |   |  $      (2,974)                                                |   |  $      (3,947)                                                |   |  $        7,421                                      |  ` |  $         (836)      |
| Weighted average diluted shares outstanding           |   |          19,213                                      |   |          14,811                                      |   |          19,296                                      |    |          14,802            |
| Adjusted earnings per share - diluted                 |   |  $        (0.15)                                     |   |  $        (0.27)                                     |   |  $          0.38                           |    |  $        (0.06)           |

| Petroleum Development Corporation                            |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|
| (dba PDC Energy)                                             |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Condensed Consolidated Statements of Operations              |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| (unaudited; in thousands, except per share data)             |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
|                                                         | Three Months EndedJune 30,                                                                                      | Six Months EndedJune 30, |
|                                                         | 2010                                                                                                            |                     | 2009                                                                                                                            |   | 2010                                                                                                           |   | 2009                                                                                                           |
| Revenues:                                                    |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Natural gas and oil sales                                    |  $        49,401                                                   |                     |  $        40,402                                                                   |   |  $      108,063                                                             |   |  $        78,569                                                  |
| Sales from natural gas marketing                             |            12,589                                        |                     |            11,306                                                        |   |            35,276                                       |   |            32,138                                       |
| Commodity price risk management gain (loss), net             |            12,257                                        |                     |          (23,284)                                                                  |   |            55,479                                       |   |                 399            |
| Well operations, pipeline income and other                   |              2,167                             |                     |              2,772                                             |   |              4,768                            |   |              5,434                            |
| Total revenues                                               |            76,414                                        |                     |            31,196                                                        |   |          203,586                                                  |   |          116,540                                                  |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Costs, expenses and other:                                   |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Natural gas and oil production and well operations costs     |            16,385                                        |                     |            13,677                                                        |   |            31,532                                       |   |            29,537                                       |
| Cost of natural gas marketing                                |            12,207                                        |                     |            10,895                                                        |   |            34,530                                       |   |            31,241                                       |
| Exploration expense                                          |              3,830                             |                     |              3,134                                             |   |            10,248                                       |   |              8,777                            |
| General and administrative expense                           |              9,855                             |                     |            14,784                                                        |   |            20,549                                       |   |            26,878                                       |
| Depreciation, depletion and amortization                     |            27,117                                        |                     |            33,259                                                        |   |            54,773                                       |   |            67,145                                       |
| Gain on sale of leaseholds                                   |                 (96)            |                     |                      - |   |                 (96)           |   |               (120)                      |
| Total costs, expenses and other                              |            69,298                                        |                     |            75,749                                                        |   |          151,536                                                  |   |          163,458                                                  |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Operating income (loss)                                      |              7,116                             |                     |          (44,553)                                                                  |   |            52,050                                       |   |          (46,918)                                                 |
| Interest income                                              |                   34  |                     |                   12                  |   |                   39 |   |                   32 |
| Interest expense                                             |            (7,672)                                       |                     |            (9,420)                                                       |   |          (15,472)                                                 |   |          (17,803)                                                 |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Income (loss) from continuing operations before income taxes |               (522)                       |                     |          (53,961)                                                                  |   |            36,617                                       |   |          (64,689)                                                 |
| Provision (benefit) for income taxes                         |               (192)                       |                     |          (20,663)                                                                  |   |            13,766                                       |   |          (25,088)                                                 |
| Income (loss) from continuing operations                     |               (330)                       |                     |          (33,298)                                                                  |   |            22,851                                       |   |          (39,601)                                                 |
| Income (loss) from discontinued operations, net of tax       |            (2,405)                                       |                     |                 203                             |   |            (1,917)                                      |   |                 787            |
| Net income (loss)                                            |            (2,735)                                       |                     |          (33,095)                                                                  |   |            20,934                                       |   |          (38,814)                                                 |
| Less: net loss attributable to noncontrolling interest       |                   (6) |                     |                 (16)                            |   |                 (61)           |   |                 (32)           |
| Net income (loss) attributable to shareholders               |  $        (2,729)                                                  |                     |  $      (33,079)                                                                             |   |  $        20,995                                                  |   |  $      (38,782)                                                            |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Amounts attributable to shareholders:                        |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Income (loss) from continuing operations                     |  $           (324)                                  |                     |  $      (33,282)                                                                             |   |  $        22,912                                                  |   |  $      (39,569)                                                            |
| Income (loss) from discontinued operations                   |            (2,405)                                       |                     |                 203                             |   |            (1,917)                                      |   |                 787            |
| Net income (loss) attributable to shareholders               |  $        (2,729)                                                  |                     |  $      (33,079)                                                                             |   |  $        20,995                                                  |   |  $      (38,782)                                                            |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Earnings (loss) per share attributable to shareholders:      |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Basic                                                        |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Income (loss) from continuing operations                     |  $          (0.02)                                       |                     |  $          (2.25)                                                       |   |  $            1.19                            |   |  $          (2.67)                                      |
| Income (loss) from discontinued operations                   |              (0.13)                            |                     |                0.01                                  |   |              (0.10)                           |   |                0.05                 |
| Net income (loss) attributable to shareholders               |  $          (0.15)                                       |                     |  $          (2.24)                                                       |   |  $            1.09                            |   |  $          (2.62)                                      |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Diluted                                                      |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Income (loss) from continuing operations                     |  $          (0.02)                                       |                     |  $          (2.25)                                                       |   |  $            1.19                            |   |  $          (2.67)                                      |
| Income (loss) from discontinued operations                   |              (0.13)                            |                     |                0.01                                  |   |              (0.10)                           |   |                0.05                 |
| Net income (loss) attributable to shareholders               |  $          (0.15)                                       |                     |  $          (2.24)                                                       |   |  $            1.09                            |   |  $          (2.62)                                      |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Weighted average common shares outstanding                   |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
| Basic                                                        |            19,213                                        |                     |            14,811                                                        |   |            19,202                                       |   |            14,802                                       |
| Diluted                                                      |            19,213                                        |                     |            14,811                                                        |   |            19,296                                       |   |            14,802                                       |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |
|                                                         |                                                                                                            |                     |                                                                                                                            |   |                                                                                                           |   |                                                                                                           |

| ·   | changes in production volumes, worldwide demand and commodity prices for natural gas and oil; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | changes in estimates of proved reserves; |
|--------------------|------------------------------------------|

| ·   | declines in the values of our natural gas and oil properties resulting in impairments; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | the timing and extent of our success in discovering, acquiring, developing and producing natural gas and oil reserves; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s ability to acquire leases, drilling rigs, supplies and services at reasonable prices; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | the availability and cost of capital to the Company; |
|--------------------|------------------------------------------------------|

| ·   | 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 our 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 (“U.S.”); |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in environmental laws and the regulations and enforcement related to those laws; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | the identification of and severity of environmental events and governmental responses to the events; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | the effect of natural gas and oil derivatives activities; |
|--------------------|-----------------------------------------------------------|

| ·   | conditions in the capital markets; and |
|--------------------|----------------------------------------|

| ·   | losses possible from pending or future litigation. |
|--------------------|----------------------------------------------------|