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Current PDCE Stock Info

PDC Energy (ticker: PDCE) is an independent natural gas and oil company that operates in Colorado within the liquid-rich Wattenberg Field and the Appalachian Basin including the emerging liquid-rich Utica Shale play in Ohio and the Marcellus Shale in West Virginia.

Gysle R. Shellum, CFO for PDC Energy, recently presented in San Francisco and focused on PDCE’s results in the Niobrara area. The following were a few key takeaways based on his presentation:

  • From year end 2011 to year end 2012, PDCE grew its proved reserves by 80% to 179 MMBOE and more than doubled its 3P reserves to 589 MMBOE.
  • Growth engine the last year and a half has been the Niobrara and Codell programs.
  • PDCE’s weighted average EUR for 1,500 locations in the Wattenberg is 335 MBOE (generates an IRR of 74% with a PV-10 of $4.2 million)
  • Inner Core EURs in the Niobrara are 500 MBOE with an IRR of 140%.
  • Given returns, PDCE is contemplating bringing in an additional rig to the Wattenberg.
  • Future growth opportunities exist with Niobrara downspacing, de-risking the Codell and its Utica program.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.