Petroleum Development Adds to Natural Gas Commodity Options
Petroleum Development Corporation announced that the Company has added to previously announced natural gas commodities derivative positions to protect against possible price instability in future periods.
For the period from April 2008 through October 2008, the Company entered into Colorado Interstate Gas (CIG) based swaps at a rate of $6.54 per Mmbtu for approximately 30% of the production from the Piceance and DJ Basins. For the same period, the Company entered into Panhandle Eastern (PEPL) based swaps at a rate of $6.80 per Mmbtu for approximately 30% of the production from the Northeast Colorado (NECO) basin as well.
By putting these positions in place, the company has approximately 75% of natural gas production in all areas covered by either collars or swaps for the summer period in 2008.
The positions in effect as of today on the Company's share of production by area are shown in the following table.
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