Dome Energy AB s pleased to announce that it has entered into an Agreement and Plan of Reorganization with PEDEVCO Corp. d/b/a Pacific Energy Development (NYSE MKT: PED), for the sale of Dome’s entire US asset base.
At closing, Dome Energy Inc.’s CEO and President, Paul Morch, will become CEO and President of the combined entity, with the current CEO of PEDEVCO, Frank Ingriselli, becoming Chairman of the Board. The Companies expect to complete the transaction no later than November 19, 2015. Final terms will be presented before the Annual General Meeting and are subject to shareholder approval.
The companies anticipate that combined production for the merged entity will be approximately 3,300 boepd with proven reserves of approximately 20 million barrels of oil equivalent. The Company believes the strong cash flow and scalability of the combined assets along with operational and financial efficiencies will enhance shareholders value for both Companies.
Chief Executive Officer, Paul Morch, stated: “This is one step closer to achieving our vision of securing scalable shale assets to complement our existing portfolio. Our goal is to grow organically to reach 10,000 boepd through the organic development of our asset base. We now have secured a solid financial base along with some of the most profitable grade shale acreage in the US. We are excited to work together with the PEDEVCO team to bring this transaction to a close. The oil price has seen a good correction from levels earlier this year, which supports an aggressive development of our assets. Good shale assets are considered more valuable than ever, and the development costs have started to balance at an attractive level. Core acreage in PEDEVCO’s acreage should support more than 100 wells being developed at current oil and gas prices. We will also hold inventory than can be scaled to several hundred wells at a higher oil price.”
