----

***Petroleum      Development Corporation***

***Forward      Looking Statements***

*Continued      on Slide 3*

***Contact      Information***

***Forward      Looking Statements (Continued)***

***Richard      W. McCullough, Chief Financial Officer***

***Company      Snapshot***

| ·   | Market                Cap (10/31/07) |
|--------------------|--------------------------------------|

| o   | $677                million |
|---------------|-----------------------------|

| ·   | Estimated                2007 Year-end Proved Reserves |
|--------------------|--------------------------------------------------------|

| o   | 650+                Bcfe* |
|---------------|---------------------------|

| ·   | 3-P                Reserves @ Year-end |
|--------------------|----------------------------------------|

| o   | 1+                TCFE** |
|---------------|--------------------------|

| ·   | Annual                Production |
|--------------------|----------------------------------|

| o   | 28                Bcfe (2007E) |
|---------------|--------------------------------|

| ·   | Diluted                Average Shares Outstanding (2007) |
|--------------------|----------------------------------------------------------|

| o   | Down                7.5% from 2006 |
|---------------|------------------------------------|

**Rocky      Mountains**

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

| ·   | 2006                Production: 14.1 Bcfe |
|--------------------|-------------------------------------------|

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

**Michigan      Basin**

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

| ·   | Production:                1.4 Bcfe |
|--------------------|-------------------------------------|

| **·  ** | 2007E                Production: 1.8 Bcfe |
|------------------------|-------------------------------------------|

**Barnett      Shale**

| ·   | Exploratory                project |
|--------------------|------------------------------------|

| ·   | Late                2007 drilling |
|--------------------|-----------------------------------|

**Appalachian      Basin**

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

| ·   | 2006                Production:  1.5 Bcfe |
|--------------------|-----------------------------------------------------|

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

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

*See      slide 2 regarding forward looking      statement*

***Third      Quarter Highlights***

| ·   | Record                three-month production of 7.72 Bcfe or almost 32 Bcfe                annualized |
|--------------------|-------------------------------------------------------------------------------------------------------|

| o   | Record                nine month production of 19.5 Bcfe |
|---------------|----------------------------------------------------------|

| o   | On                track with 28 Bcfe guidance for                2007 |
|---------------|-----------------------------------------------------------------------|

| ·   | Adjusted                Cash Flow from Operations up substantially despite impact of lower                realized prices* |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | $31.6                million or approximately $120 million annualized                         |
|--------------------|-----------------------------------------------------------------------------------------------|
| ·   | Drilled                95 gross new wells including 4 in the Appalachian                Basin |

| o   | 80.8                net wells |
|---------------|-------------------------------|

| o   | 264                gross (220.4 net) wells for 9                months |
|---------------|------------------------------------------------------------------------|

|   | * | Adjusted                cash flow from operations is defined as cash flow from operations                before                changes in assets and liabilities.  EBITDA is defined as Net                Income + Interest, net + Income Taxes + Depreciation, depletion,                amortization. These are non-GAAP measures.  See slide 25 for                further information. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Summary      Financial Results ($ in millions, except for per share      data)***

|                                           | **Third****Quarter** | **Nine                Months****Ended                Sep 30** |
|------------------------------------------------|----------------------|---------------------------------------------------------------|
|                                           | 2006                 | 2007                                                          | 2006 | 2007 |
| **Revenues**                                   | $70.8                | $76.3                                                         | $218.3 | $210.1 |
| **Total                Expenses**              | $58.2                | $66.4                                                         | $175.9 | $192.4 |
| **Income                from Operations***     | $340.6               | $9.9                                                          | $370.4 | $43.3 |
| **Net                Income***                 | $210.9               | $4.5                                                          | $229.8 | $25.0 |
| **Diluted                Earnings Per Share*** | $13.33               | $0.30                                                         | $14.32 | $1.68 |

|   | ***** | Includes                $328 million in 2006 and $25.6 million in 2007 (9 months only) for                gain on                sale of leaseholds related to the Marathon lease                sale. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Investments      Adding Value ($ in millions, except for Mcfe data)***

|                                                        | **Third****Quarter** | **Nine                Months****Ended                Sep 30** |
|-------------------------------------------------------------|----------------------|---------------------------------------------------------------|
| **Expense                Category**                         | 2006                 | 2007                                                          | 2006 | 2007 |
| **Oil                & gas production & well ops.** | $8.6                 | $12.6                                                         | $22.4 | $33.3 |
| ***Per                Mcfe***                               | $1.99                | $1.64                                                         | $1.84 | $1.71 |
| **General                & administrative expense**     | $5.3                 | $7.5                                                          | $14.2 | $21.8 |
| ***Per                Mcfe***                               | $1.24                | $0.97                                                         | $1.17 | $1.12 |
| **DD&A**                                                | $8.3                 | $20.4                                                         | $22.5 | $50.9 |
| ***Per                Mcfe***                               | $1.92                | $2.64                                                         | $1.85 | $2.61 |

*See      slide 2 regarding forward looking      statement*

***Revenue***

| ·   | Increased                production at record levels |
|--------------------|------------------------------------------------------|

| ·   | Other                factors impacting revenue |
|--------------------|------------------------------------------------|

| o   | Lower                oil & natural gas prices ($1.33 per                Mcfe) |
|---------------|-----------------------------------------------------------------------------------|

| ·  |  Oil              & gas sales up over $13 million |
|--------------|------------------------------------------------------------|
| ·   | RNG                revenues down over $10 million, no real impact in                margins |
|--------------------|---------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Net      Income***

| ·   | 3Q07                Net Income of $4.5 million |
|--------------------|------------------------------------------------|

| ·   | Primary                Drivers |
|--------------------|--------------------------------|

| o   | Increased                Production |
|---------------|-------------------------------------|

| o   | Lower                prices |
|---------------|-----------------------------|

| o   | Increased                DD&A |
|---------------|-----------------------------------|

| o   | $5.3                million exploration expenses |
|---------------|--------------------------------------------------|

| ·   | Unit expense                rate per Mcfe change from 2Q07 |
|--------------------|-----------------------------------------------------------------|

| o   | Oil                & gas production & well ops down                10% |
|---------------|--------------------------------------------------------------------------------|

| o   | G&A                down 9% |
|---------------|--------------------------------|

| o   | DD&A                down 2% |
|---------------|---------------------------------|

*See      slide 2 regarding forward looking      statement*

***Adjusted      Cash Flow from Operations***

| ·   | Continuing                to grow significantly despite lower                prices |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | Adjusted                cash flow from operations is defined as cash flow from operations                before                changes in assets and liabilities |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*See      slide 28 for GAAP Reconciliation*

*See      slide 2 regarding forward looking      statement*

***EBITDA***

| ·   | Important                non-GAAP measure of pre-tax cash                income |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Substantial growth (2002-2006 CAGR of 38% after adjustment of                2006                leasehold sale) |
|--------------------|------------------------------------------------------------------------------------------------------------------|
| ·   | EBITDA                = Net Income + Interest, net + Income Taxes + Depreciation,                depletion, amortization |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Diverse      Energy Market Exposure***

***Thomas      E. Riley,****President***

***Continuing      Our Success***

| ·   | Colorado                Acquisitions - production and development                opportunities |
|--------------------|------------------------------------------------------------------------------------------------|

| o   | Active                development program |
|---------------|-------------------------------------------|

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

| o   | 375                planned wells for 2007 |
|---------------|-------------------------------------------|

| ·   | Operations                enhancements |
|--------------------|----------------------------------------|

| o   | Piceance                Basin Compression |
|---------------|-------------------------------------------|

| o   | Garden                Gulch road completed |
|---------------|--------------------------------------------|

| o   | Codell                recompletions and Niobrara refracs |
|---------------|----------------------------------------------------------|

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

| ·   | Pennsylvania                acquisition - production and development                opportunities |
|--------------------|---------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Increasing      Production***

| ·   | Record                7.7 Bcfe 3Q07 |
|--------------------|-------------------------------------|

| ·   | On                track to meet 28 Bcfe annual                guidance |
|--------------------|------------------------------------------------------------------------|

| ·   | YTD                Production by area |
|--------------------|---------------------------------------|

| o   | Rocky                Mountains = 83.6% |
|---------------|----------------------------------------|

| §   | 75.7%                Natural Gas |
|--------------------|----------------------------------|

| §   | 24.3%                Oil |
|--------------------|--------------------------|

| o   | Appalachian                Basin = 9.8% |
|---------------|-----------------------------------------|

| o   | Michigan                = 6.6% |
|---------------|--------------------------------|

*See      slide 2 regarding forward looking      statement*

***Increasing      Estimated Proved Reserves***

| ·   | Anticipate                greater than 650+ Bcfe proved reserves for YE                2007 |
|--------------------|---------------------------------------------------------------------------------------------|

| o   | Additions                through both the drill bit and                acquisitions |
|---------------|-------------------------------------------------------------------------------------|

| ·   | Active                areas primarily in Colorado - Piceance, Wattenberg and                NECO |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Southwestern                Pennsylvania acquisition |
|--------------------|------------------------------------------------------|

|   | * | Reserves                are based on internal Company                estimates.  |
|--------|---|---------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Drilling      Activity***

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

| ·   | Estimated                2007 Production of 28 Bcfe |
|--------------------|-----------------------------------------------------|

| o   | Nine                month production of 19.5 Bcfe |
|---------------|---------------------------------------------------|

| ·   | Estimated                2007 Exit Rate approximately 100                MMcfd |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Back-log                of wells awaiting turn-in in Grand Valley, Wattenberg and NECO                areas |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Challenge                to meet production goal |
|--------------------|--------------------------------------------------|

| o   | Fourth                qtr curtailment |
|---------------|---------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Enhancements      to 2007 Operational Plan***

| ·   | Acquired                47 Bcfe of proved reserves in Southwestern                Pennsylvania |
|--------------------|------------------------------------------------------------------------------------------------|

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

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

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

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

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

*See      slide 2 regarding forward looking      statement*

***Development      Plans***

| ·   | Grand                Valley offset locations |
|--------------------|----------------------------------------------|

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

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

| ·   | 31.2                Bcfe in Southwestern Pennsylvania |
|--------------------|-------------------------------------------------------|

| ·   | Over                400 Bcfe of Probable and Possible Reserves for Future                Development |
|--------------------|------------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Southwestern      Pennsylvania Acquisition***

| ·   | PETD                closed the acquisition of Castle Gas Company                assets |
|--------------------|----------------------------------------------------------------------------------------|

| o   | $53                million purchase price |
|---------------|-------------------------------------------|

| §   | $1.12                per Mcfe |
|--------------------|-------------------------------|

| o   | Acquired                majority interest in 760 natural gas wells located in southwestern                Pennsylvania |
|---------------|------------------------------------------------------------------------------------------------------------------------|

| §   | Current                daily production of 3,000 Mcfe/d |
|--------------------|---------------------------------------------------------|

| o   | Highly                predictable, low risk drilling |
|---------------|------------------------------------------------------|

| §   | 47                Bcfe of proved reserves |
|--------------------|-------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***Key      Value Drivers***

| ·   | Proven                Track Record |
|--------------------|------------------------------------|

| o   | 5-year                850% return to shareholders |
|---------------|---------------------------------------------------|

| o   | 66%                year-over-year production growth |
|---------------|-----------------------------------------------------|

| o   | 55%                year-over-year reserve growth |
|---------------|--------------------------------------------------|

| ·   | Visible                Built-in-Growth |
|--------------------|----------------------------------------|

| o   | More                than 1 Tcfe of 3P reserves provides significant near-term growth                potential |
|---------------|---------------------------------------------------------------------------------------------------------------|

| o   | Large                multi-year, low risk drilling                inventory |
|---------------|-----------------------------------------------------------------------------|

| o   | Recently                added 47 Bcfe of proved reserves in Southwestern Pennsylvania (15.8                Bcfe                producing) |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strong                Financial Position |
|--------------------|------------------------------------------|

| o   | Strong                balance sheet |
|---------------|-------------------------------------|

| o   | Debt-to-cap                26% |
|---------------|--------------------------------|

*See      slide 2 regarding forward looking      statement*

***Supplemental      Data***

***2007      Production Forecast***

|                              |             | **Forecast**     |
|-----------------------------------|------------------|------------------|
| **Area**                          | **1Q****Actual** | **2Q****Actual** | **3Q****Actual** | **1Q** | **2Q** | **3Q** | **4Q** | **2007** |
| **Rocky                Mountain** | 4,290            | 5,322            | 6,683 | 4,435 | 5,041 | 6,794 | 7,405 | 23,675 |
| **Appalachian**                   | 617              | 687              | 610 | 625 | 640 | 680 | 689 | 2,634 |
| **Michigan**                      | 426              | 427              | 428 | 415 | 424 | 456 | 459 | 1,754 |
| **Company                Total**  | **5,333**        | **6,436**        | **7,721** | **5,475** | **6,104** | **7,931** | **8,553** | **28,063** |

|                                    |                   | **Forecast**     |
|-----------------------------------------|------------------------|------------------|
| **Area**                                | **1Q ****Actual** | **2Q****Actual** | **3Q****Actual** | **1Q** | **2Q** | **3Q** | **4Q** | **2007** |
| **Wattenberg**                          | 2,209                  | 2,623            | 2,963 | 2,314 | 2,586 | 3,149 | 3,361 | 11,410 |
| **Grand                Valley**         | 1,246                  | 1,590            | 2,622 | 1,064 | 1,245 | 2,086 | 2,094 | 6,490 |
| **NECO**                                | 677                    | 942              | 960 | 834 | 954 | 1,203 | 1,492 | 4,483 |
| **North                Dakota**         | 158                    | 165              | 138 | 224 | 256 | 355 | 458 | 1,293 |
| **Rocky                Mountain Total** | **4,290**              | **5,321**        | **6,683** | **4,435** | **5,041** | **6,794** | **7,405** | **23,675** |

**Forecasted      numbers are from presentation to Analysts on January 22,      2007**

**Major      Operating Area Highlights**

| ·   | Wattenberg                Area production shortfall due to weather related issues, production                not                “lost” but delayed |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Grand                Valley production positively impacted by facility improvements and                greater                # of wells inline |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | NECO                Area production difference due to fewer wells inline than                anticipated |
|--------------------|----------------------------------------------------------------------------------------------------------|

*See      slide 2 regarding forward looking      statement*

***EBITDA  &      Adjusted Cash Flow from Operations Reconciliation ($ in      thousands)***

| **EBITDA**                   | **2002** | **2003** | **2004** | **2005** | **2006** | **9/30/2007** | **3Q06** | **3Q07** |
|------------------------------|----------|----------|----------|----------|----------|---------------|----------|----------|
| Net                Income    | $8,881   | $20,413  | $33,228  | $41,452  | $237,772 | $25,011       | $210,884 | $4,459   |
| Interest,                Net | 1,257    | 626      | 53       | (681)    | (5,607)  | 2,766         | (3,109)  | 2,082    |
| Income                Taxes  | 3,186    | 11,934   | 20,250   | 24,676   | 149,637  | 15,511        | 132,795  | 3,326    |
| Depreciation                 | 12,602   | 15,313   | 18,156   | 21,116   | 33,735   | 50,857        | 8,300    | 20,354   |
| EBITDA                       | $25,926  | $48,286  | $71,687  | $86,563  | $415,537 | $94,145       | $348,870 | $30,221  |

| **Adjusted                Cash Flow Operations**                 | **2002** | **2003** | **2004** | **2005** | **2006** | **9/30/2007** | **3Q06** | **3Q07** |
|------------------------------------------------------------------|----------|----------|----------|----------|----------|---------------|----------|----------|
| Net                Cash Provided by Operating Activities         | $28,173  | $73,608  | $73,301  | $112,372 | $67,390  | ($32,800)     | $2,632   | $43,585  |
| Changes                in Assets & Liabilities to Operations | (2,875)  | (26,691) | (10,786) | (38,815) | (37,554) | 101,003       | (2,497)  | (11,987) |
| Adjusted                Cash Flow from Operations                | $25,298  | $46,917  | $62,515  | $73,557  | $29,836  | $68,203       | $135     | $31,638  |

*See      slide 2 regarding forward looking      statement*

***Petroleum      Development Corporation***