PDC Energy released the company’s preliminary oil and gas exploration and development budget for 2011. The company expects to spend up to $300 million, subject to approval by the board of directors.

PDC Energy estimates that its 2011 capital plan will range between $260 and $300 million, with development drilling comprising between $205 million and $240 million of the total. The company will also spend $36 million to repurchase several oil and gas partnerships issued in 2005.

PDC Energy is active in developing the Niobrara oil formation in the Wattenberg Field in Colorado, where it is conducting a horizontal drilling program. The company is also active in the Wolfberry oil formation in the Permian Basin in Texas, where it is recompleting and drilling vertical wells.

PDC Energy estimates that this level of capital will lead to between 20% and 25% production growth in 2011 over 2010, with oil and natural gas liquids comprising between 30% and 35% of total production.

PDC Energy also raised capital to fund part of this capital program in the form of equity and convertible bonds. The company sold 3.6 million shares of common stock at $32 per share, and issued $100 million principle value of the 3.25% convertible senior notes due in 2016.

For more information on the company, go to www.petd.com

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