***NEWS   FROM***
 **Petroleum
        Development Corporation**






**FOR
      IMMEDIATE RELEASE:**  October 15, 2007


**CONTACT:**Celesta
      Miracle - (304)
      842-3597   http://www.petd.com





**Petroleum
      Development Corporation Enters Into a Definitive Agreement**


**With
      Castle Gas Company, Inc.**





**Bridgeport,
      West Virginia:******Petroleum
      Development Corporation
      (NASDAQ/GSM: PETD) today announced it has entered into a definitive agreement
      to
      purchase a majority working interest in approximately 760 natural gas wells
      located in southwestern Pennsylvania, which are operated by Castle Gas Company,
      Inc.  The purchase price is approximately $53,000,000 (Fifty Three
      Million Dollars) and includes approximately 47 Bcfe of reserves net to the
      purchased interest (15.8 Bcfe net Proved Developed Producing, 31.2 Bcfe of
      net
      Proved and Probable Undeveloped Reserves) and associated pipelines, equipment,
      real estate and undeveloped acreage.  It is anticipated that the
      transaction will close by the end of October, with an effective date of October
      1, 2007. The company anticipates that the acquisition will be immediately
      accretive to earnings and cash flow per share.  Closing of the
      transaction is subject to satisfaction of normal and customary provisions for
      a
      purchase of this type and there is no guarantee that closing will
      occur.  The reserves identified herein have not been included in any
      previous disclosure by PDC.  Upon closing, PDC will be the operator on
      the majority of the properties.  Current daily production net to the
      acquired interests is approximately 3,000 Mcfe per day.  Tom Riley,
      President, comments*“This acquisition
      is our second in
      Appalachia this year and represents our continuing commitment to growth in
      this
      area.  These assets are in our backyard and can be easily integrated
      into our existing operations.  The undeveloped acreage represents a
      great opportunity to add low risk gas reserves through drilling over the next
      few years.”*





About
      Petroleum Development Corporation


Petroleum
      Development Corporation (www.petd.com) is an independent energy company engaged
      in the development, production and marketing of natural gas and oil. Its
      operations are focused in the Rocky Mountains with additional operations in
      the
      Appalachian Basin and Michigan. During the third quarter of 2004, PDC was added
      to the S&P SmallCap 600 Index. Additionally, PDC was added to the Russell
      3000 Index of Companies in 2003.





Forward-Looking
      Statements


Certain
      matters discussed within this press release are forward-looking statements
      within the meaning of the Private Securities Litigation Reform Act of
      1995.  All statements other than statements of historical fact
      included herein are forward-looking statements.  Although PDC believes
      the expectations reflected in such forward-looking statements are based on
      reasonable assumptions, it can give no assurance that its expectations will
      be
      attained. Factors that could cause actual results to differ materially from
      expectations include financial performance, oil and gas prices, drilling program
      results, drilling results, regulatory changes, changes in federal or state
      tax
      policy, changes in local or national economic conditions and other risks
      detailed from time to time in PDC's reports filed with the Securities and
      Exchange Commission, including quarterly reports on Form 10-Q, current reports
      on Form 8-K and annual reports on Form 10-K.





The
      SEC
      permits oil and gas companies to disclose in their filings with the SEC only
      proved reserves, which are reserve estimates that geological and engineering
      data demonstrate with reasonable certainty to be recoverable in future years
      from known reservoirs under existing economic and operating conditions. The
      Company uses in this presentation the terms “probable” and “possible” reserves,
      which SEC guidelines prohibit in filings of U.S. registrants. Probable reserves
      are unproved reserves that are more likely than not to be recoverable. Possible
      reserves are unproved reserves that are less likely to be recoverable than
      probable reserves. Estimates of probable and possible reserves which may
      potentially be recoverable through additional drilling or recovery techniques
      are by nature more uncertain than estimates of proved reserves and accordingly
      are subject to substantially greater risk of not actually being realized by
      the
      Company. In addition, The Company’s production forecasts and expectations for
      future periods are dependent upon many assumptions, including estimates of
      production decline rates from existing wells and the undertaking and outcome
      of
      future drilling activity, which may be affected by significant commodity price
      declines or drilling cost increases.





###




**120
      Genesis Boulevard Ÿ
      Bridgeport, West Virginia 26330 Ÿ (304)
      842-3597**