Pedevco Corp. (PED)

[futrcash]

Sould be significant production increase reported in the near term-

Operations Update...from August PR

In May 2022, a third-party operator completed the drilling of six horizontal Niobrara wells in the Barracuda Unit in our D-J Basin Asset in which the Company holds a ~34.38% working interest at an estimated net cost to us of ~$12.5 million. We anticipate that first production from these wells will commence in Q4 2022, following the planned completion of these wells in Q3 or Q4 2022.

In addition, the Company elected to participate in an additional eight horizontal Niobrara wells in the Ross Unit located in our D-J Basin Asset, and operated by a third-party operator, with the Company holding a ~4.7% working interests at an estimated net cost to us of ~$2.5 million. These were already drilled in May 2022, with the planned completion of these wells and first production anticipated in Q4 2022.

As the Barracuda and Ross Units are non-operated, we do not control the timing of their completions. The above timing estimates are based on our best available knowledge we have from the operators.

The Company also reports that, based on production reports received from the operator, the production performance of the ten D-J Basin wells completed in Q4 2021 in the Hunt 8-60 17B-8 Unit and Hunt 8-60 17B-20 Unit which are operated by Civitas Resources Inc. (acquired by Civitas from Bison Oil & Gas II, LLC in February 2022) in which the Company holds working interests ranging from ~3.68% to ~7.37%, continue to exceed the Company's expectations and outperform the Company's type curve.

In the Permian Basin, the Company commenced initial production from two new horizontal San Andres wells in its Chaveroo Field in early March 2022. We implemented a controlled flowback strategy in order to maximize estimated ultimate recovery ("EUR") and value while seeking to minimize sand return and maintain shallower decline over the long term. The wells are currently stabilized and producing approximately 406 BOEPD on a combined basis, and we anticipate that these wells will meet or exceed our type curve EUR and produce at a higher and more consistent rate over time.

futr