|   |   |                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------|
| þ |   | ANNUAL      REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|   |   |                                                                                         |
|--------|--------|----------------------------------------------------------------------------------------------|
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

| A. |   | Full      title of the plan and address of the plan, if different from that of the      issuer named below:  |
|----|--------|-------------------------------------------------------------------------------------------------------------------|

| B. |   | Name      of the issuer of the securities held pursuant to the plan and the address      of its principal executive office:  |
|----|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| 1.               |   | In      lieu of the requirements of Item 1-3: audited statements and      schedules prepared in accordance with the requirements of ERISA for the      Plan’s fiscal years ended December 31, 2006 and  2005. |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                          |
|             |   |                                                                                                                                                                                                                          |
|             |   |                                                                                                                                                                                                                          |
| Exhibit      23. |   | Consent      of Schneider Downs & Co., Inc., Independent Registered Public      Accounting Firm.                                                                                                                          |

----

|                                                                                    | Page   |
|-----------------------------------------------------------------------------------------|--------|
| Report of      Independent Registered Public Accounting Firm                            | 3      |
| Financial      Statements:                                                              |   |
| Statements of      Net Assets Available for Benefits                                    | 4      |
| Statement of      Changes in Net Assets Available for Benefits                          | 5      |
| Notes to      Financial Statements                                                      | 6-9    |
| Supplemental      Schedules*                                                            | 10     |
| Schedule H,      Question 4a – Delinquent Participant    Contributions            | 11     |
| Schedule      H,      Line 4i:  Schedule      of Assets (Held at End of Year) | 12     |
| Signature      Page                                                                     | 13     |
| Exhibit 23 –      Consent of Independent Registered Public Accounting      Firm   |        |

----

REPORT OF INDEPENDENT REGISTEREDPUBLIC ACCOUNTING FIRM

as of December 31,2006 and 2005, and the changes in its net assets
 available for benefits for the year endedDecember 31, 2006 in conformity with accounting principles generally accepted inthe United States of America.

----

STATEMENTS OF NET ASSETSAVAILABLE FOR BENEFITS

|                                              |   | December      31,                                                                                                                                 |
|---------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Assets                                            |   | 2006                                                                                                                                              |   | 2005 |
|                                              |   |                                                                                                                                              |   |   |
| Cash                                              |   |  $                    -                  |   |  $              437 |
| Participant      loans                            |   |                     369                       |   |                  395 |
| Petroleum      Development stock purchase account |   |                         1 |   |                     - |
| Investments      at fair value                    |   |                17,821                                                  |   |               5,717 |
|                                              |   |                                                                                                                                              |   |   |
| Total      investments                            |   |                18,191                                                  |   |               6,549 |
|                                              |   |                                                                                                                                              |   |   |
| Receivables:                                      |   |                                                                                                                                              |   |   |
|        Employer contributions                |   |                  1,380                                       |   |                     - |
|        Participant contributions             |   |                       71            |   |                     - |
|        Accrued interest                      |   |                         1 |   |                     - |
|                                              |   |                                                                                                                                              |   |   |
| Total      receivables                            |   |                  1,452                                       |   |                     - |
|                                              |   |                                                                                                                                              |   |   |
| Net      assets available for benefits            |   |  $            19,643                                                             |   |  $           6,549 |
|                                              |   |                                                                                                                                              |   |   |

----

STATEMENT OF CHANGES IN NETASSETS AVAILABLE FOR BENEFITS

|                                                                               |   |                                                                                                                                  |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| Additions      to net assets attributed to:                                        |   |                                                                                                                                  |
| Investment      income:                                                            |   |                                                                                                                                  |
|        Interest and dividend income                                           |   |  $               551                                  |
|        Net realized & unrealized change in fair value of      investments |   |                1,440                                       |
|                                                                               |   |                                                                                                                                  |
|     Total      investment income                               |   |                1,991                                       |
|                                                                               |   |                                                                                                                                  |
| Contributions:                                                                     |   |                                                                                                                                  |
|        Employer contributions                                                 |   |                   668                       |
|        Participant contributions                                              |   |                   723                       |
|        Employer contributions-profit sharing                                  |   |                1,300                                       |
|        Participant rollovers                                                  |   |                       1 |
|                                                                               |   |                                                                                                                                  |
|     Total      contributions                                   |   |                2,692                                       |
|                                                                               |   |                                                                                                                                  |
| Transfer      of assets - profit sharing                                           |   |                8,750                                       |
|                                                                               |   |                                                                                                                                  |
|     Total      additions                                       |   |              13,433                                                  |
|                                                                               |   |                                                                                                                                  |
| Deductions      from net assets attributed to:                                     |   |                                                                                                                                  |
|                                                                               |   |                                                                                                                                  |
| Benefits      paid to participants                                                 |   |                   339                       |
| Administrative      expenses                                                       |   |                      -       |
|                                                                               |   |                                                                                                                                  |
|     Total      deductions                                      |   |                   339                       |
|                                                                               |   |                                                                                                                                  |
| Net      increase                                                                  |   |              13,094                                                  |
|                                                                               |   |                                                                                                                                  |
| Net      assets available for benefits:                                            |   |                                                                                                                                  |
|                                                                               |   |                                                                                                                                  |
| Beginning      of year                                                             |   |                6,549                                       |
|                                                                               |   |                                                                                                                                  |
| End      of year                                                                   |   |  $          19,643                                                             |
|                                                                               |   |                                                                                                                                  |
|                                                                               |   |                                                                                                                                  |
|        See notes to financial statements.                                     |   |                                                                                                                                  |

----

NOTES TO FINANCIALSTATEMENTS

----

----

|                              |   | 2006          |   | 2005    |
|-----------------------------------|--------|---------------|--------|---------|
| Petroleum      Development Corp.  |   | $3,897        |   | *       |
| Fidelity      Freedom 2010        |   | $1,469        |   | *       |
| Fidelity      Freedom 2020        |   | $3,074        |   | *       |
| Fidelity      Freedom 2015        |   | $2,738        |   | *       |
| Fidelity      Freedom 2025        |   | $1,397        |   |  * |
| Schwab      Retirement Money Fund |   |   * |   | $437    |
| Aim      Basic Balanced Investor  |   | *             |   | $456    |
| Dryfus      Appreciation          |   | *             |   | $505    |
| Dryfus      Short Int Govt        |   | *             |   | $1,045  |
| Invesco      Dynamics             |   | *             |   | $959    |
| MFS      Mass Inv Growth          |   | *             |   | $949    |
| Schwab      1000                  |   | *             |   | $1,623  |
| Participant      Loans            |   | *             |   | $395    |

| Mutual      funds                                  |    $954 |
|----------------------------------------------------|------------------------|
| Petroleum      Development Corp. Common Stock      |    $486 |
| Net      appreciation in fair value of investments | $1,440                 |
|                                               |                   |

----

----

----

FORM 5500, SCHEDULE H, PART IV, QUESTION 4a—

| Amount      of                                                                         |   |                                                                                                                       |   |                                                                                                                                         |   |                                                                       |   |                                                                                               |
|----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
| Employee                                                                               |   | Total      Nonexempt (Not Corrected Under VFC)                                                                             |   |                                                                                                                                         |
| Contributions                                                                          |   | Total      Not                                                                                                             |   | Total      Corrected                                                                                                                         |   | Total      Pending                                                         |   | Corrected                                                                                          |
| Remitted      Late                                                                     |   | Corrected                                                                                                                  |   | Outside      of VFC                                                                                                                          |   | Under      VFC                                                             |   | Under      VFC                                                                                     |
|                                                                                   |   |                                                                                                                       |   |                                                                                                                                         |   |                                                                       |   |                                                                                               |
|  $            250,450 |   |  $                   - |   |  $                      - |   |  $          250,450 |   |  $               - |
|                                                                                   |   |                                                                                                                       |   |                                                                                                                                         |   |                                                                       |   |                                                                                               |

----

SCHEDULE H, LINE 4i — 
SCHEDULE OF ASSETS (HELD AT END OFYEAR)

| (a)    | (b)                                                                                             |              | (c)                                                                                         |                                                                                                                              | (d)                                                                                                                               |                                                                                                                                                    | (e)                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------|-------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        Identity      of Issuer, Borrower, Lessor or Similar Party                          |              |        Description      of Investment Including Maturity Date and Rate of Interest     |                                                                                                                              | Cost***                                                                                                                           |                                                                                                                                                    | Current      Value                                                                                                                                      |
|   |                                                                                            |              |                                                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    | (in      thousands)                                                                                                                                     |
|   | ABF      Large Cap Val PA                                                                       |              | American      Beacon Large Cap Value  Plan Ahead Class                            |                                                                                                                              |  $                  609            |
|   | Rainier                                                                                         |              | Rainier      Small/Mid Cap Equity Mutual Fund                                               |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      480                       |
|   | Royce                                                                                           |              | Royce      Opportunity Mutual Fund                                                          |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      165                       |
| *      | Petroleum      Development Corporation                                                          |              | Common      Stock                                                                           |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                   3,897                                       |
| *      | Fidelity      Contrafund                                                                        |              | Fidelity      Contrafund Mutual Fund                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      521                       |
| *      | Fidelity      Value                                                                             |              | Fidelity      Value Mutual Fund                                                             |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                        68            |
| *      | Fidelity      Balanced                                                                          |              | Fidelity      Balanced Mutual Fund                                                          |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      246                       |
| *      | Fidelity      International Discovery                                                           |              | Fidelity      International Discovery Mutual Fund                                           |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      308                       |
| *      | Fidelity      Export and Multinational                                                          |              | Fidelity      Export and Multinational Mutual Fund                                          |                                                                                                                              |                                                                                                                              |                        75            |
| *      | Fidelity      Freedom Income                                                                    |              | Fidelity      Freedom Income Mutual Fund                                                    |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                        -             |
| *      | Fidelity      Freedom 2000                                                                      |              | Fidelity      Freedom 2000 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                          1 |
| *      | Fidelity      Freedom 2010                                                                      |              | Fidelity      Freedom 2010 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                   1,469                                       |
| *      | Fidelity      Freedom 2020                                                                      |              | Fidelity      Freedom 2020 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                   3,074                                       |
| *      | Fidelity      Freedom 2030                                                                      |              | Fidelity      Freedom 2030 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      706                       |
|   | Spartan      Total Market Index                                                                 |              | Spartan      Total Market Index Mutual Fund - Investor Class                                |                      100 |
|   | Spartan      International Index                                                                |              | Spartan      International Index Mutual Fund - Investor Class                               |                      343 |
| *      | Fidelity      Retirement Money Market                                                           |              | Fidelity      Retirement Money Market Mutual Fund                                           |                                                                                                                              |                      229 |
| *      | Fidelity      US Bond Index                                                                     |              | Fidelity      US Bond Index Mutual Fund                                                     |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                        52            |
| *      | Fidelity      Freedom 2040                                                                      |              | Fidelity      Freedom 2040 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      202                       |
| *      | Fidelity      Freedom 2005                                                                      |              | Fidelity      Freedom 2005 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      674                       |
| *      | Fidelity      Freedom 2015                                                                      |              | Fidelity      Freedom 2015 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                   2,738                                       |
| *      | Fidelity      Freedom 2025                                                                      |              | Fidelity      Freedom 2025 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                   1,367                                       |
| *      | Fidelity      Freedom 2035                                                                      |              | Fidelity      Freedom 2035 Mutual Fund                                                      |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                      497                       |
| *      | Petroleum      Development Stock Purchase Account                                               | Money      Market |                                                                                        |                                                                                                                              |                                                                                                                              |                          1 |
| *      | Participant      Loan Balances                                                                  |              | Loans      with maturities ranging from 1 month to 60 months and interest rates at      6%. |                      369 |
|   |                                                                                            |              |                                                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                    |
|   |                                                                                            |              |                                                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |  $             18,191                                                             |
|   |  * Denotes      party-in-interest to the Plan                                         |              |                                                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                    |
|   |  *** Historical      cost is not required as all investments areparticipant-directed. |              |                                                                                        |                                                                                                                              |                                                                                                                              |
|   |                                                                                            |              |                                                                                        |                                                                                                                              |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                    |

----

|                         |                                                                        |
|------------------------------|-----------------------------------------------------------------------------|
|                         | PETROLEUM      DEVELOPMENT CORPORATION 401(K) AND PROFIT SHARING PLAN  |
|                         | /s/      Darwin L. Stump                                               |
|                         | Darwin      L. Stump                                                   |
| February      26, 2008  | Chief      Accounting Officer                                          |