SunTrust Robinson Humphrey: Play-by-Play Oil & Gas Conference Wattenberg: Niobrara/Codell May 23, 2013 NASDAQ:PDCE
Company Overview NASDAQ:PDCE Market cap 1.5 Billion(1) Strategic Core Areas Enterprise value 2.1 Billion(1) Colorado and Appalachian Basin Proved reserves 193 MMBoe (1.2 Tcfe)(2) WATTENBERG Liquid- UTICAAPPALACHIAN BASIN 48%…
PDCE Share Count Leverage to Top-Tier Plays PDCE Highly Leveraged To the Top Liquids-Rich US Onshore Basins Core Wattenberg: Net Acreage/Million Outstanding Shares IRRs of US Onshore Basins(1) 0% 10% 20% 30% 40% 50% 60% 4,000…
Regional Niobrara Deposition Niobrara section is uniformly present across entire DJ Basin Only economically productive in certain areas of the basin 5/23/2013 7
Depositional Setting of the Niobrara Average depth of +/- 7,200 in Core Wattenberg Field Organic Rich Source Rx Chalky Benches created from skeletal debris of living Organic Rich Source Rx organisms deposited in shallow marine…
Colorado Mineral Belt Wattenbergs Heat Source CMB heat flow runs continuously from southwest Colorado, thru central Colorado and extends to the plains under Core Wattenberg Field then dies out further northeast Denver CMB heat…
Core Wattenberg: Niobrara Composition Benches are not pure chalks, they contain abundant organics Many interbedded chalks / shales / marls make up the entire Niobrara section Niobrara outcrop in cement quarry near Lyons,…
Core Wattenberg: Codell Geologic Summary Considered same petroleum system as Niobrara zones Composition is silty, shaly, very fine grained, clay-cemented sandstone Source of deposition was a shallow marine environment Average…
Core Wattenberg Horizontal Summary Horizontal wells are 70% 80% liquids Typical EURs from 300 to 500 MBoe Excellent industry returns IRR of 40% 140%(1) Very repeatable results within Core Wattenberg due to geologic factors…
Analysis of Tighter Horizontal Niobrara Spacing Detailed Reservoir Engineering Points Towards 40-Acre Horizontal Well Density Engineering team using reservoir modeling to understand drainage areas Comparing model data to actual…
Waste Management Section 2Q4Q 2013 Section 2 Township 2 North, Range 64 West Map View Waste Management Section 2N-64W Sec. 2 640 acres 16-wells / 4-pads N Spud May 2013 Completion Fall / 4Q 2013 Side View 5/23/2013 14
Core Wattenberg Midstream Summary Plants and compression built within PDCs acreage area Temporary by-pass on DCP plants to add capacity in 2013 LaSalle plant start-up late Q313 Incremental 160 MMcfd of capacity Lower average line…
Contact Information Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Investor Relations Manager marti.dowlingpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman…
Appendix 5/23/2013 18
Wattenberg Field Stratigraphy Rocky Mountains created the current western boundary of the DJ basin Zones of basement weakness directly below Core Wattenberg Field enabled high heat-flow from the Mantle to thermally generate…
Core Wattenberg Productivity A Thermal Maturity Bull's-Eye is centered under the Core Wattenberg Field The location of the Bulls-Eye is due to the high heat flow that generated substantial recoverable oil and gas across the Core…
Horizontal Development Highlights Drill site considerations for multi-well pad Larger pad size to accommodate drilling equipment Less surface footprint than equivalent number of vertical wells Reduce size of pad for production…
General Horizontal Wattenberg Well Design Well design Premium grade tubulars and connections minimize mechanical risks Packer-and-sleeve design preferred over plug-and-perf completion Frac design Number of stages varies due to…
PDCs Wattenberg Development Summary Wattenberg Net Production Wattenberg Spuds 8,000 140 Oil NGLs Gas 120 6,000 100 MBoe 80 4,000 60 2,000 40 20 0 0 2011 2012 2013E 2014E 2011 2012 2013E 2014E Development CAPEX…
Horizontal Niobrara Summary Continued Delineation of Core Wattenberg Continued horizontal development of the Niobrara has delineated three core areas across the Wattenberg Field The core areas represent the different areas of…
Industry-Based Niobrara Delineation Study Significant Inventory of Wells Across All Areas Within Core Wattenberg Wattenberg Hz Niobrara study included 350 wells across the field with 3+ months of production Industry Core Wattenberg…
Productivity of the Codell Boundary for Codell horizontal development based on traditional Codell vertical productivity area The Codell is blanketed across the identified area and is hydrocarbon charged, yielding consistently…
Horizontal Codell Summary Strong Well Performance Shows Potential for Development Across Wattenberg Eight producing PDC Codell horizontals showing results similar to existing horizontal Niobrara wells Overall industry performance…
PDC Horizontal Production: Niobrara and Codell (2) (2) (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas. Excludes lease acquisition and corporate-level costs. (2) Economics based on Outer Core acreage. 5/23/2013 28
Wells Ranch Downspacing Pilot Section 34 T006N R063W Map View Wells Ranch Pad 6N-63W-34 Wells Ranch 4-well pad Pad N Production (Boepd) 34 10,000 Wells Ranch 43-34H 1,000 Vertical Well HZ Niobrara Stacked HZ Niobrara/…
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