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Amid Ongoing Merger, Drilling Expansion, PEDEVCO Corp. (PED) Set to Power through Remainder of 2015
PEDEVCO is focused on acquiring and developing high growth energy projects, including shale oil and gas assets, in the United States. Though the company’s principal asset is its D-J Basin Asset located in the D-J Basin in Colorado, PEDEVCO last month reported the initiation of drilling operations on seven new Wattenberg horizontal wells in Weld County, Colorado. The company has a 25 percent working interest in each of the seven wells and is on the fast-track to finish 2015 with strength.
Since its founding as a private company in 2011, PEDEVCO has steadily increased its acreage holding from less than 5,000 acres to current holdings of more than 25,000 net acres, demonstrating the company’s ability to identify and move-in on key growth opportunities. The Wattenberg locations represent one of several near-term growth drivers for PEDEVCO, which also include strategic downspacing, improved drilling and completion techniques and reducing costs.
A more long-term driver is the company’s intended merger with Dome Energy. In May 2015, PEDEVCO announced its merger agreement with Dome in which PEDEVCO will acquire all the U.S. oil and gas assets of Dome. On the operational side, PEDEVCO management sees great benefits in Dome’s expertise in conventional plays, diverse portfolio of operated wells, low cost and low risk production, and long-life, low decline production. Financially, Dome comes to the table with a strong balance sheet and cash flow generation, long-term hedges significantly above current market rates, low OPEX production, and a lower cost of capital with a 3.75 percent bank credit facility. Combined, PEDEVCO anticipates increased pro forma production to 3,300 BOE/D at closing, and an estimated PV10 of 1P reserves of approximately $280 million.
If PEDEVCO’s track record is any inclination, the company is well prepared to fully take advantage of these drivers.
Spearheading this momentum is a management team with collective decades of global experience in the oil and gas industry. PEDEVCO CEO Frank Ingriselli has more than 35 years of experience in the industry as a seasoned leader and entrepreneur with wide-ranging E&P experience in diverse geographies, business climates and political environments. Ingriselli is the founder of Pacific Asia Petroleum, Inc. – later known as CAMAC Energy Inc. (NYSE:CAK) – which has operations in Africa.
Prior to Pacific Asia Petroleum, Ingriselli spent 23 years at Texaco in diverse senior executive positions involving in power and gas operations, merger and acquisition activities, pipeline operations and corporate development. His tenure at Texaco included the positions of:
• President of Texaco Technology Ventures
• President and CEO of the Timan Pechora Company (owned by affiliates of Texaco, Exxon, Amoco, Norsk Hydro and Lukoil)
• President of Texaco International Operations Inc.
Ingriselli led Texaco’s global initiatives in exploration and development in key new countries at that time, including China and Russia, and was integral in the signing the company’s first successful international oil contract in China in 1983, which today is still generating over $1 billion a year in revenues.
Under this leadership, and despite a more than 50-percent drop in the price of oil, PEDEVCO in the first quarter of 2015 grew revenues to approximately $1.5 million compared to $1 million the year prior. Production for the same period grew to approximately 49,000 BOE from approximately 13,000 BOE in the comparable quarter of 2014.
Moving forward, PEDEVCO in a news release said it plans to maintain its pace, close its merger with Dome, and continue its focus on building shareholder value.
For more information, visit www.pacificenergydevelopment.com
