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PETROLEUM DEVELOPMENT CORPORATION REPURCHASES 1.9 MILLION SHARES OF COMPANY STOCK

 BRIDGEPORT, W.Va., Nov. 18 /PRNewswire/ -- Petroleum Development Corporation (NASDAQ-NMS: PETD) (PDC) today announced that it has repurchased for cash 1.9 million shares of the company's common stock from Chemical Bank for a price of about $1.50 per share. Chemical Bank's remaining holding will amount to 500,000 shares of PDC stock, which is subject to an option of the company to repurchase up to 250,000 of those shares. After the transaction the company has 10.9 million shares of common stock outstanding.
 Financing for the purchase was provided by NBD Bank, N.A. as a part of a new credit facility providing up to $7.5 million of available credit. The initial $3.3 million draw against the facility was used for the stock purchase, and to pay off all of the company's remaining debt obligation to Chemical Bank.
 According to PDC Executive V.P. Dale G. Rettinger, the Chemical Bank stock repurchase will substantially improve prospects for the company's shareholders by reducing dilution of ownership approximately 15 percent. Rettinger indicated that the company plans to use the additional credit availability under the new NBD credit facility for the acquisition of producing properties, construction of pipeline gathering systems, and further development of the company's proved undeveloped reserves.
 Rettinger also indicated that the company will realize a one-time $360,000 increase in income in the fourth quarter of 1993 resulting from the early repayment of the Chemical Bank loan. The gain results from lower rates of interest paid on the loan compared to amounts previously booked.
 Petroleum Development Corporation, a leading Appalachian independent oil and gas company, is headquartered in Bridgeport, and is engaged in the business of exploring for, developing and producing oil and natural gas. Petroleum Development's common stock is traded in the NASDAQ National Market with the symbol PETD.
 -0- 11/18/93
 /CONTACT: Dale G. Rettinger, executive v.p., of Petroleum Development, 304-842-3597/
 (PETD CHL NBD)


CO: Petroleum Development Corporation; Chemical Bank; NBD Bank, N.A. ST: West Virginia IN: OIL SU:

KC-JM -- PG010 -- 6043 11/18/93 12:43 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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