PDC Energy JV acquires 90,000 acres in Marcellus Shale in $152.5 million deal

PDC Energy (NASDAQ:PETD) announced Monday that PDC Mountaineer, its 50/50 joint venture subsidiary with Lime Rock
Partners, has agreed to acquire all rights and depths to approximately 90,000 acres in the Marcellus Shale in West
Virginia for $152.5 million, from Seneca-Upshur LLC.

Under the terms of the agreement, PDC Mountaineer will acquire those 90,000 acres located in the Harrison, Taylor,
Barbour, Upshur, Lewis, and Randolph counties of north central West Virginia. It will also acquire an additional
10,000 acres in the Mingo and McDowell counties of southwestern West Virginia, on the Huron Shale.

These assets produce approximately 5.4 million cubic feet per day (MMcfe/d), net to PDC Mountaineer. The gas comes
mainly from the shallow Devonian formation, the wells to which are also included in the transaction.
The property carries a 95% working interest, and a total of 17% in royalties.

PDC Energy president and CEO, James Trimble commented: "The acquisition nearly triples our Marcellus position in
West Virginia and represents a significant growth opportunity for PDC Energy over the next ten to twenty years."
Indeed, the deal, which the company said it plans to fund through its current credit facility and through the sell-
off of some of its non-core assets, brings PDC Mountaineer's current net production from both the Marcellus Shale
and the Devonian formation to 24 MMcfe/d, and increases its West Virginia position to 140,000 net acres of Marcellus
Shale.

PDC Mountaineer said it plans to begin development on the Marcellus Shale lands in 2012, drilling a total of 20 to
25 horizontal wells per year.

The transaction is expected to close on October 3, 2011, and is subject to customary and regulatory approvals.
PDC Energy's stock shed 3.9% as of 1:50 pm EDT, trading at $19.71.