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

**Petroleum Development Corporation**

** **

**FOR IMMEDIATE RELEASE:**  March 6, 2006

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

**Petroleum Development Commences Drilling Operations on**

**Sweetwater County****, WY****Exploratory Test Well and**

**Adds to Natural Gas Commodity Options**

Bridgeport, West Virginia... Petroleum Development Corporation (NASDAQ/NMS PETD) todayannounced that in late February the Company commenced the drilling of theAnadarko 14-1 well, a 12,000 ft exploratory Almond test located in Township 20North, Range 91 West, Sweetwater County, Wyoming.  The well will bedrilled in conjunction with Company sponsored drilling partnerships and PDC'stotal working interest will be 51% including 30% purchased outside thepartnership.  The estimated dry hole cost is approximately $1.4 millionand the estimated completed well cost is approximately $2.6 million.  Ifthe well is successful, its cost will be capitalized and depreciated over thelife of the well using the units of production depreciation method.  Ifthis well is determined to be a dry hole, its cost will be expensed in theperiod when the determination is made as required by the successful effortsmethod of accounting.

In addition, the Company hasadded to previously announced natural gas and oil commodities options positionsto protect against possible price instability in future periods. 

The Company set floors at $6.50per million British thermal unit (Mmbtu) at a cost of $.84 per Mmbtu for theperiod from November 2006 through March 2007 for approximately 40% of currentproduction from its Piceance Basin.  The Company also set floors at $5.50 perMmbtu at a cost of $.67 per Mmbtu for the period from April 2007 through October2007 for approximately 33% of current Piceance basin production.  The Piceancefloors are based upon Colorado Interstate Gas Index (CIG).

For the Appalachian and Michiganbasins, the Company set floors at $8.00 per Mmbtu at a cost of $.88 per Mmbtu forthe period from November 2006 through March 2007 for approximately one sixth ofcurrent production.  For the same period, November 2006 through March 2007, theCompany also purchased participating collars at a cost of $.20 per Mmbtu whichset floors at $8.50 and ceilings at $13.73 for an additional one sixth ofcurrent production.  For the period from April 2007 through October 2007 theCompany set floors at $7.00 per Mmbtu at a cost of $.70 per Mmbtu forapproximately one sixth of current production.  For the same period, April 2007through October 2007, the Company also purchased participating collars at acost of $.20 per Mmbtu which set floors at $7.50 and ceilings at $10.83 for anadditional one sixth of current production.  The Appalachian and Michigan basin options are Nymex based.  

The Company set floors at $6.00per Mmbtu at a cost of $.62 per Mmbtu for the period from April 2007 throughOctober 2007 for approximately one third of current production from its NECO (Northeastern Colorado properties).  For the same period, the Company also purchasedparticipating collars at a cost of $.20 per Mmbtu which set floors at $6.50 andceilings at $9.80 for an additional one third of current NECO production.  TheNECO options are based upon Panhandle Eastern Index.

By placing these options andconsidering options previously put in place, the Company has established floorson approximately two thirds of production for next winter and one third for thefollowing summer in the event that natural gas prices retreat, while maintainingupside potential on over two thirds of its gas.   The Company intends toexpense the cost of the options as they expire.

***Continued onPage 2***

***Page 2***

The accompanying tables summarize all of the Company'scurrent hedging positions.

|                                                                    |            |                                                               |            Floors              |                      |         Ceilings               |
|--------------------------------------------------------------------|------------|---------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |            |                                                               | Monthly                                                                                                                                                |                      |                                                                                                                                              | Monthly |  |
|                                                                    |            | Quantity                                                      | Contract                                                                                                                                               | Quantity             | Contract                                                                                                                                     |
|                                                                    |            | Mmbtu                                                         | Price                                                                                                                                                  | Mmbtu                | Price                                                                                                                                        |
| Month Set                                                          | Month      |                                                               |                                                                                                                                                        |                      |                                                                                                                                         |
| **Colorado****Interstate Gas (CIG) Based Hedges (Piceance Basin)** |
| Jan-05                                                             |            | Jan 2006 - Mar 2006                                           | 60,000                                                                                                                                                 | $4.50                |                                                                                                                                              | 30,000 | $7.15 |
| Jul-05                                                             |            | Jan 2006 - Mar 2006                                           | 27,500                                                                                                                                                 | $6.50                |                                                                                                                                              | 13,750 | $8.27 |
| Sep-05                                                             |            | Jan 2006 - Mar 2006                                           | 78,700                                                                                                                                                 | $9.00                |                                                                                                                                              | - | - |
| Mar-05                                                             |            | Apr 2006 - Oct 2006                                           | 42,000                                                                                                                                                 | $4.50                |                                                                                                                                              | 21,000 | $7.25 |
| Jul-05                                                             |            | Apr 2006 - Oct 2006                                           | 27,500                                                                                                                                                 | $5.50                |                                                                                                                                              | 13,750 | $7.63 |
| Jul-05                                                             |            | Nov 2006 - Mar 2007                                           | 27,500                                                                                                                                                 | $6.00                |                                                                                                                                              | 13,750 | $8.40 |
| Feb-06                                                             |            | Nov 2006 - Mar 2007                                           | 60,000                                                                                                                                                 | $6.50                |                                                                                                                                              | - | - |
| Feb-06                                                             |            | Apr 2007 - Oct 2007                                           | 44,000                                                                                                                                                 | $5.50                |                                                                                                                                              | - | - |
| **NYMEX Based Hedges - (Appalachian and Michigan Basins)**         |
| Jan-05                                                             |            | Jan 2006 - Mar 2006                                           | 156,000                                                                                                                                                | $5.00                |                                                                                                                                              | 78,000 | $8.50 |
| Sep-05                                                             |            | Jan 2006 - Mar 2006                                           | 156,000                                                                                                                                                | $10.50               |                                                                                                                                              | - | - |
| Mar-05                                                             |            | Apr 2006 - Oct 2006                                           | 78,000                                                                                                                                                 | $5.50                |                                                                                                                                              | 39,000 | $7.40 |
| Jul-05                                                             |            | Apr 2006 - Oct 2006                                           | 61,000                                                                                                                                                 | $6.25                |                                                                                                                                              | 30,000 | $8.98 |
| Jul-05                                                             |            | Nov 2006 - Mar 2007                                           | 68,000                                                                                                                                                 | $7.00                |                                                                                                                                              | 34,000 | $9.27 |
| Feb-06                                                             |            | Nov 2006 - Mar 2007                                           | 34,000                                                                                                                                                 | $8.00                |                                                                                                                                              | - | - |
| Feb-06                                                             |            | Nov 2006 - Mar 2007                                           | 34,000                                                                                                                                                 | $8.50                |                                                                                                                                              | 34,000 | $13.73 |
| Feb-06                                                             |            | Apr 2007 - Oct 2007                                           | 34,000                                                                                                                                                 | $7.00                |                                                                                                                                              | - | - |
| Feb-06                                                             |            | Apr 2007 - Oct 2007                                           | 34,000                                                                                                                                                 | $7.50                |                                                                                                                                              | 34,000 | $10.83 |
| **NYMEX Based Hedges (NECO)**                                      |
| Jan-05                                                             |            | Jan 2006 - Mar 2006                                           | 150,000                                                                                                                                                | $5.00                |                                                                                                                                              | 75,000 | $8.45 |
| **Panhandle Based Hedges (NECO)**                                  | ** ** | ** **                                                    | ** **                                                                                                                                             | ** **           |
| Sep-05                                                             |            | Jan 2006 - Mar 2006                                           | 100,000                                                                                                                                                | $10.00               |                                                                                                                                              | - | - |
| Mar-05                                                             |            | Apr 2006 - Oct 2006                                           | 150,000                                                                                                                                                | $5.00                |                                                                                                                                              | 75,000 | $8.62 |
| Jul-05

Feb-06

Feb-06                                             |            | Nov 2006 - Mar 2007

Apr 2007 - Oct 2007

Apr 2007 - Oct 2007 | 150,000

60,000

60,000                                                                                                                                | $6.50 

$6.00

$6.50 |                                                                                                                                              | 75,000

-

60,000 | $8.56 

-

$9.80 |

Petroleum Development Corporation(www.petd.com) is an independent energy company engaged in the development,production and marketing of natural gas.  The Company operations are focused inthe Rocky Mountains with additional operations in the Appalachian Basin and Michigan. During the third quarter of 2004, the Company was added to the S&P SmallCap600 Index. Additionally, PDC was added to the Russell 3000 Index of companiesin 2003.  PDC was named on the FSB: Fortune Small Business Magazine list of America's 100 Fastest-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 thatits expectations 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.

###

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