SEC 8-K out last night. Positive results, moving into next phase of Q2 2019 as planned.
PEDEVCO Provides Updates on New Horizontal San Andres Wells Drilled in its Permian Basin Asset
Haley 305H Well Peak IP30 of 499 BOEPD
Jennifer 251H Well Peak IP24 of 431 BOEPD
Houston, Texas, May 6, 2019 – PEDEVCO Corp. (NYSE American: PED) (the “Company”) today announced that its first horizontal well drilled in the Company’s Chaveroo field, the Haley Chaveroo SA Unit 305H (“Haley 305H well”), which reached a peak daily rate (“IP24”) of 539 barrels of oil equivalent per day (“BOEPD”) (88% oil), or 138 BOE per 1,000 feet, has now achieved a thirty-day average peak initial production rate (“IP30”) of 499 BOEPD (87% oil). The Haley 305H well’s peak IP30 being within 10% of its peak IP24 daily rate validates the Company’s focus on conventional assets rather than higher decline shale assets. In addition, the Company’s second horizontal San Andres well put online, the Jennifer Chaveroo SA Unit 251H (“Jennifer 251H well”), has reached an IP24 of 431 BOEPD (86% oil), or 95 BOE per 1,000 feet. These results place the Haley 305H well’s IP30 within the top-8 percentile, and the Jennifer 251H well’s IP24 within the top-20 percentile, of San Andres horizontal wells drilled in the Northwest Shelf and Central Basin Platform based on IHS Markit data for 778 horizontal producers as of March 2019 (December 2018 reporting month).
The Haley 305H and Jennifer 251H wells are the first of four horizontal San Andres wells brought on production that the Company drilled and completed in the Chaveroo field in Phase One of its 2019 development plan. The Company plans to announce IP30 rates from all these wells by the end of Q2 2019.
Dr. Simon Kukes, the Company's CEO, commented, ''We believe these positive well results have validated our strategy of applying unconventional technologies to the development of our conventional San Andres assets, which have an estimated 700 million barrels of oil equivalent remaining in place and over 150 potential drilling locations identified by the Company. We plan to proceed into Phase Two of our 2019 development plan that calls for the drilling and completion of an additional 8 horizontal San Andres wells and one salt water disposal well through the remainder of 2019.”
