Thursday, November 10, 2011

PDC Energy (PETD) - Utica Shale Ohio News

November 10, 2011 - Petroleum Development Corporation (dba PDC Energy) (Nasdaq:PETD) recently announced that they are involved in the Utica Shale. The Utica Shale is really heating up in the oil window of the field which is located in Ohio.

PDC has acquired the rights for up to 40,000 net acres in the Utica shale play in southeastern Ohio for approximately $70 million. The Company plans to fund $14 million in 2011 and expects the remaining $56 million to be funded in 2012.

James Trimble, President and Chief Executive Officer, stated, "Our third quarter results were strong, and from a business development perspective we were particularly pleased. We acquired the rights of up to 40,000 net acres in the Utica Shale play in southeastern Ohio, we announced PDCM's acquisition of 90,000 acres prospective for the Marcellus Shale in West Virginia, and we announced the planned divestitures of our NECO, Permian basin and certain non-core assets. We engaged in a process to secure a joint venture partner in the Utica Shale play. Proceeds generated from the anticipated asset divestitures and the successful conscription of a joint venture partner will be utilized to strengthen our balance sheet, improve our liquidity position, and fund a portion of our 2012 developmental capital program. We expect our divestitures to occur in the fourth quarter of 2011 and the first quarter 2012."