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Overview of PEDEVCO Corp (Symbol: PED)
PEDEVCO Corp is a publicly-traded oil and gas company specializing in the acquisition and development of strategic energy projects across the United States. As an energy company operating in the highly competitive oil and gas sector, PEDEVCO employs modern drilling and completion techniques on legacy proved properties that feature a long production history, well-defined geology, and established infrastructure. This focus on enhancing proven assets with contemporary field management technologies positions the company as an expert in optimizing mature assets for increased operational efficiency.
Core Business and Asset Portfolio
The company's operational footprint spans two primary regions: the Permian Basin and the Denver-Julesburg (D-J) Basin. In the Permian Basin, PEDEVCO concentrates on its San Andres formation assets in West Texas and eastern New Mexico, where the emphasis is on leveraging existing infrastructure to enhance production using proven modern techniques. In the D-J Basin, situated in Colorado and Wyoming, the company has focused on acquiring properties with long-term production histories, enabling it to maximize the returns from its development projects. The strategic nature of these assets underlines PEDEVCO's commitment to risk-conscious investments in areas with well-established geological parameters.
Operational Strategy and Technological Approach
PEDEVCO’s business model revolves around acquiring traditional resource-rich properties and applying advanced drilling and completion technologies that have not yet been fully exploited. This approach not only enables the company to extend the productive life of mature assets but also helps in reducing operational expenses through cost-effective production strategies. The company’s methodology emphasizes operational excellence, risk management, and effective cost control measures, making it a model of technological application in an industry driven by both discovery and optimization.
Market Position and Competitive Landscape
Operating within the energy sector, PEDEVCO effectively positions itself by focusing on assets that require measured investment and disciplined field management. Unlike companies that pursue rapid expansion through high-cost exploration, PEDEVCO leverages the benefits of legacy asset performance, thereby differentiating itself in a competitive landscape. Its strategic focus on developed basins allows for an efficient balance between production reliability and cost reduction, making it notable among investors who value a conservative yet opportunistic approach in the energy market.
Partnerships, Collaborations, and Risk Management
The company actively engages in partnerships and joint ventures to further its development objectives. Collaborations with experienced operators in both the Permian and D-J Basins have allowed PEDEVCO to boost production and streamline operations. These strategic alliances not only enhance its technological know-how but also mitigate the inherent risks associated with large-scale energy projects. PEDEVCO’s robust risk management framework encompasses operational safety, cost containment, and asset integrity, ensuring that the company remains resilient amid industry volatility.
Financial Considerations and Operational Efficiency
While specific financial figures are not the primary focus, PEDEVCO’s disciplined cost structure and focus on operational improvements underscore its commitment to sustainable business practices. The company’s efforts in consolidating assets, reducing operating expenses, and streamlining administrative practices illustrate a prudent approach to financial management. This operational efficiency is a key factor in achieving reliable production outcomes and reinforcing investor confidence.
Industry Expertise and Future Readiness
PEDEVCO Corp demonstrates a high level of expertise in the oil and gas sector by continuously adapting traditional asset management to modern technological applications. Its in-depth understanding of geological formations, combined with a strategic focus on cost-efficient field operations, showcases the company's expert knowledge. This expertise has earned PEDEVCO a reputation for meticulous asset development and operational excellence, which are critical attributes in the dynamic landscape of the energy industry.
Conclusion
In summary, PEDEVCO Corp is an energy company with a clear focus on the deliberate acquisition and technological advancement of legacy oil and gas assets. By concentrating on geologically proven regions such as the Permian and D-J Basins, and by implementing modern drilling techniques, the company maintains a balanced approach to risk and reward. Its strategic partnerships, disciplined operational tactics, and commitment to cost control position it as a knowledgeable participant in the energy sector, providing a comprehensive operational framework for investors seeking to understand the nuances of contemporary energy project development.
PEDEVCO Corp. (NYSE American: PED) reported a 68% increase in third-quarter revenues to $4.1 million, driven by a favorable price variance of $2.1 million despite a volume variance loss of $400,000. Oil and gas production averaged over 700 BOEPD with 83% from oil. The net loss narrowed to $325,000 from $2.3 million year-over-year, while Adjusted EBITDA surged 129% to $1.9 million. Cash reserves rose to $23.2 million as of September 30, 2021. The company plans to drill two new wells in the Permian Basin by year-end 2021.
PEDEVCO Corp. (NYSE American: PED) has successfully closed a registered direct offering, raising approximately $7.0 million by selling around 4.5 million shares of common stock at $1.57 per share. After expenses, the net proceeds are estimated at $6.4 million, which will primarily fund asset development programs in the Permian and D-J Basins, pursue acquisition opportunities, and support general corporate purposes. The offering was facilitated by EF Hutton and Roth Capital Partners, with compliance under an effective shelf registration statement.
PEDEVCO Corp. (NYSE American: PED) has announced a registered direct offering to raise approximately $7.0 million by selling about 4.5 million shares of common stock at a price of $1.57 per share. The offering is expected to close on October 6, 2021, subject to customary conditions. The funds will support the acquisition and development of energy projects in the U.S. EF Hutton and Roth Capital Partners are acting as joint placement agents for this offering.
PEDEVCO Corp. (NYSE American: PED) has updated its presentation showcasing the company's strategic plans in the D-J Basin and the Permian Basin. The company reported impressive offset well performance in the D-J Basin, attributed to enhanced geological targeting and completion techniques. PEDEVCO aims to allocate more capital toward non-operated projects in the D-J Basin, participating in several upcoming horizontal Niobrara wells. Additionally, the ongoing 'Phase III' development of its Permian asset is set to continue, leveraging a debt-free balance sheet and approximately $20 million in free cash for growth.
PEDEVCO Corp. (PED) announced a significant revenue increase in Q2 2021, reporting $3.74 million, a 470% rise from $656 thousand in Q2 2020. Oil and gas production surged 40% to 718 BOEPD, driven by the resumption of operations after COVID-19-related shut-ins. Operating loss narrowed to $0.6 million from $3.4 million in the prior year. Adjusted EBITDA improved to $1.6 million from a loss of $0.7 million. Cash reserves stood at $22.63 million as of June 30, 2021.
PEDEVCO Corp. (NYSE: PED) announced successful results from its Phase II development program, drilling two horizontal San Andres wells. The Haley Chaveroo SA Unit 301H achieved an initial production rate of 428.6 BOEPD, while the Haley Chaveroo SA Unit 303H reached 178.4 BOEPD, with both wells primarily producing oil. Additionally, the company sold non-core assets in the D-J Basin, adding $1.9 million in cash. With over $18.5 million in cash and zero debt, PEDEVCO aims to leverage its financial position for asset development and M&A opportunities.
PEDEVCO Corp. announced the closing of an underwritten public offering of 5,968,500 shares of common stock at a price of $1.50 per share, generating approximately $8.95 million in gross proceeds. This offering included the full exercise of the underwriter's over-allotment option, managed by Kingswood Capital Markets. The shares were offered under a "shelf" registration statement filed with the SEC. PEDEVCO specializes in the acquisition and development of high-growth energy projects and operates key assets in the Permian Basin and D-J Basin.
PEDEVCO Corp. (NYSE American: PED) has terminated its exchange offer for SandRidge Permian Trust Common Units due to the Avalon Asset Sale’s adverse impact on the Trust’s value. PEDEVCO cited that the sale stripped the Trust of significant royalty interests, impacting future production drastically, which was lowered to approximately 240 barrels of oil equivalent per day from 1,000 barrels. This led to the conclusion that the Trust no longer holds sufficient value for PEDEVCO, prompting the withdrawal of the offer and return of Trust units to unitholders.
PEDEVCO Corp. (NYSE American: PED) issued a public request to Avalon Energy and Montare Resources for clarity on their asset sale transaction, revealing concerns over its fair valuation. The sale involved releasing 31.8% of the SandRidge Permian Trust's royalty interests for $4.9 million. PEDEVCO questions the transaction's arm's-length nature due to potential common ownership. If the sale price is accurate, it implies a low total asset valuation for the Trust, prompting fears of asset stripping and future revenue loss. PEDEVCO demands transparency on the royalty interests sold and the valuation justifications from Avalon and Montare by November 13, 2020.
PEDEVCO Corp. (NYSE American: PED) announced an exchange offer for SandRidge Permian Trust, initiating an exchange of Trust Common Units for PEDEVCO stock. The Trust's recent sale to Montare Resources raised concerns about valuation transparency, as it received $4.9 million for 31.8% of its value, implying a total value of only $15.4 million. This falls significantly short of previous valuations reported in the Trust's 10-K, which indicated values exceeding $100 million. PEDEVCO has urged Avalon and Montare to clarify their valuation process to ensure fair treatment for Trust Unitholders.
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