Petroleum Development Corp., Denver, (NASDAQ: PETD) closed the sale of its remaining Permian Basin assets to

Concho Resources Inc., Midland, (NYSE: CXO) for approximately $184.4 million after closing adjustments. Proceeds will be used to reduce outstanding borrowings on the company’s revolving credit facility and to fund the company’s 2012 capital spending budget.

PDC previously sold its noncore Permian assets in fourth-quarter 2011 for $13.3 million, resulting in total proceeds from the sale of the Permian Basin assets of approximately $198 million. In 2011, Permian assets represented approximately 5%, or 2.5 billion cu. ft. equivalent (Bcfe), of total production and 6%, or 65 Bcfe, of year-end proved reserves.

PDC also reported that its joint venture, PDC Mountaineer LLC (PDCM), has elected to temporarily suspend drilling in the Marcellus shale play due to depressed natural gas prices. PDCM is currently drilling its third horizontal Marcellus well in 2012 and plans to drill one additional well prior to suspending drilling operations. PDCM also plans to complete seven wells during the next several months, including three wells that were drilled in 2011.

PDC’s previously announced 2012 capital budget of $284 million will remain unchanged. The company plans to reallocate the $12-million PDCM equity contribution portion of the capital budget to liquid-rich projects in Wattenberg Field, in Colorado’s D-J Basin. The company reconfirmed its production guidance of 53 Bcfe for 2012.

James Trimble, president and chief executive, said the company is pleased with its West Virginia Marcellus program, which has yielded 5- to 7 Bcf per well, and that “substantially all” of its Marcellus acreage is held by production, allowing the company to wait for improved gas prices before recommencing drilling.

BMO Capital Markets advised PDC Energy on the asset sale to Concho.

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