PEDEVCO Announces Entry into Participation Agreement and Area of Mutual Interest with Large Private Equity-Backed D-J Basin E&P Company
PEDEVCO Corp. (NYSE American:PED) has entered into a five-year Participation Agreement and Area of Mutual Interest with a large private equity-backed D-J Basin E&P Company in Colorado. The agreement covers joint development of approximately 10,750 net acres in the SW Pony Prospect, Weld County, Colorado. Key points include:
1. Formation of a 16,900 gross acre AMI with PEDEVCO holding 30% interest and the Operator 70%.
2. Plans to drill and complete a minimum of five horizontal Niobrara wells per year over the next five years.
3. PEDEVCO acquired a ~27.9% working interest in six new horizontal D-J Basin wells drilled in Q3 2024, expected to provide immediate production uplift.
4. The AMI covers approximately 16% of PEDEVCO's D-J Basin acreage.
This collaboration aims to accelerate development and increase production in the highly-prospective SW Pony Prospect area.
PEDEVCO Corp. (NYSE American:PED) ha firmato un accordo di partecipazione di cinque anni e un'area di interesse reciproco con una grande società di produzione di E&P del bacino D-J sostenuta da fondi privati in Colorado. L'accordo riguarda lo sviluppo congiunto di circa 10.750 acri netti nel potenziale SW Pony, nella contea di Weld, Colorado. I punti chiave includono:
1. Formazione di un AMI di 16.900 acri lordi con PEDEVCO che detiene una partecipazione del 30% e l'operatore il 70%.
2. Piani per perforare e completare un minimo di cinque pozzi orizzontali Niobrara all'anno nei prossimi cinque anni.
3. PEDEVCO ha acquisito una interesse di lavoro del ~27,9% in sei nuovi pozzi orizzontali nel bacino D-J perforati nel terzo trimestre del 2024, ci si aspetta un immediato aumento della produzione.
4. L'AMI copre circa il 16% della superficie di PEDEVCO nel bacino D-J.
Questa collaborazione mira ad accelerare lo sviluppo e aumentare la produzione nell'area altamente promettente del potenziale SW Pony.
PEDEVCO Corp. (NYSE American:PED) ha firmado un acuerdo de participación de cinco años y un área de interés mutuo con una gran empresa de E&P del D-J Basin respaldada por capital privado en Colorado. El acuerdo abarca el desarrollo conjunto de aproximadamente 10,750 acres netos en el Prospecto SW Pony, condado de Weld, Colorado. Los puntos clave incluyen:
1. Formación de un AMI de 16,900 acres brutos con PEDEVCO poseyendo un 30% de interés y el operador un 70%.
2. Planes para perforar y completar un mínimo de cinco pozos horizontales Niobrara al año durante los próximos cinco años.
3. PEDEVCO adquirió un interés de trabajo del ~27.9% en seis nuevos pozos horizontales en el D-J Basin perforados en el tercer trimestre de 2024, se espera que proporcionen un aumento inmediato en la producción.
4. El AMI cubre aproximadamente el 16% de la superficie de PEDEVCO en el D-J Basin.
Esta colaboración tiene como objetivo acelerar el desarrollo y aumentar la producción en el área del Prospecto SW Pony, que tiene un alto potencial.
PEDEVCO Corp. (NYSE American:PED)는 콜로라도에 있는 대형 사모펀드 지원 D-J 분지 E&P 회사와 5년 간의 참여 계약 및 공동 관심 지역을 체결했습니다. 이 계약은 콜로라도 웰드 카운티의 약 10,750 헥타르의 순면적에 대한 공동 개발을 포함합니다. 주요 내용은 다음과 같습니다:
1. PEDEVCO가 30%의 지분을 보유하고 운영자가 70%인 16,900 헥타르 총면적 AMI의 형성.
2. 향후 5년간 연간 최소 5개의 수평 니오브라라 유정을 시추 및 완공할 계획.
3. PEDEVCO는 2024년 3분기에 시추된 6개의 새로운 수평 D-J 분지 유정에 대해 약 27.9%의 작업 지분을 인수했으며, 이는 즉각적인 생산 증가를 기대하고 있습니다.
4. AMI는 PEDEVCO의 D-J 분지 면적의 약 16%를 포함합니다.
이 협력의 목표는 SW Pony Prospect 지역에서의 개발을 가속화하고 생산을 증가시키는 것입니다.
PEDEVCO Corp. (NYSE American:PED) a conclu un accord de participation de cinq ans et une zone d'intérêt mutuel avec une grande société de production E&P du bassin D-J soutenue par des capitaux privés au Colorado. L'accord concerne le développement conjoint de près de 10 750 acres nets dans le projet SW Pony, dans le comté de Weld, Colorado. Les points clés comprennent :
1. Formation d'un AMI de 16 900 acres bruts avec PEDEVCO détenant 30 % d'intérêt et l'opérateur 70 %.
2. Plans pour forer et achever un minimum de cinq puits horizontaux Niobrara par an au cours des cinq prochaines années.
3. PEDEVCO a acquis un intérêt de travail d'environ 27,9 % dans six nouveaux puits horizontaux du bassin D-J forés au troisième trimestre 2024, qui devraient offrir un accroissement immédiat de la production.
4. L'AMI couvre environ 16 % des terres de PEDEVCO dans le bassin D-J.
Cette collaboration vise à accélérer le développement et à augmenter la production dans la zone prometteuse de SW Pony.
PEDEVCO Corp. (NYSE American:PED) hat eine fünfjährige Beteiligungsvereinbarung und ein Gebiet des gemeinsamen Interesses mit einem großen, von Private Equity unterstützten E&P-Unternehmen im D-J Basin in Colorado unterzeichnet. Die Vereinbarung umfasst die gemeinsame Entwicklung von ungefähr 10.750 Netto-Acres im SW Pony-Projekt, Weld County, Colorado. Die wichtigsten Punkte umfassen:
1. Bildung eines 16.900 Acres großen AMI, bei dem PEDEVCO 30% Interesse und der Betreiber 70% hält.
2. Pläne zur Bohrung und Fertigstellung von mindestens fünf horizontalen Niobrara-Brunnen pro Jahr in den nächsten fünf Jahren.
3. PEDEVCO hat ein ~27,9% Arbeitsinteresse an sechs neuen horizontalen D-J Basin Brunnen, die im dritten Quartal 2024 gebohrt wurden, und es wird erwartet, dass diese sofortige Produktionssteigerungen bringen.
4. Das AMI umfasst ungefähr 16% der PEDEVCO-Fläche im D-J Basin.
Diese Zusammenarbeit zielt darauf ab, die Entwicklung zu beschleunigen und die Produktion im potenziellen SW Pony-Projektgebiet zu erhöhen.
- Entered into a five-year Participation Agreement with a large, experienced D-J Basin operator
- Acquired ~27.9% working interest in six new horizontal wells, expected to provide immediate production uplift in Q3 2024
- Plans to drill and complete a minimum of five horizontal Niobrara wells per year for the next five years
- Accelerated development of the highly-prospective SW Pony Prospect, which was not in prior near-term plans
- None.
Insights
This participation agreement represents a significant strategic move for PEDEVCO, potentially accelerating its growth and production in the D-J Basin. Key points to consider:
- The partnership covers 10,750 net acres in the SW Pony Prospect, with PEDEVCO holding a
30% interest in the 16,900 gross acre AMI. - The agreement includes plans to drill and complete a minimum of five horizontal Niobrara wells per year over the next five years, indicating a substantial increase in PEDEVCO's development activities.
- PEDEVCO has acquired a
~27.9% working interest in six new horizontal wells, which should provide an immediate production uplift in Q3 2024. - This deal allows PEDEVCO to leverage the expertise of a larger, experienced operator while sharing costs and risks.
Financially, this agreement could lead to increased revenue and cash flow for PEDEVCO in the near term, particularly from the newly acquired interest in producing wells. However, investors should also consider the capital expenditures required for the planned drilling program and how this might impact the company's balance sheet.
This partnership is a strategic coup for PEDEVCO, aligning them with a major player in the D-J Basin. The deal's structure offers several advantages:
- Access to operational expertise: The larger partner's track record of "superior well results" could translate to improved efficiency and production rates for PEDEVCO's assets.
- Risk mitigation: By participating as a non-operator, PEDEVCO reduces operational risks while maintaining significant upside potential.
- Accelerated development: The SW Pony Prospect was not in PEDEVCO's near-term plans, so this agreement fast-tracks development of these assets.
- Portfolio diversification: The deal affects only
16% of PEDEVCO's D-J Basin acreage, allowing the company to maintain control over its core operated assets.
The immediate production boost from the six new wells is particularly noteworthy, as it should positively impact PEDEVCO's production profile and cash flow in the short term. Long-term, the commitment to drilling five wells annually for five years provides a clear growth trajectory for the company's reserves and production.
HOUSTON, TX / ACCESSWIRE / October 1, 2024 / PEDEVCO Corp. (NYSE American:PED) ("PEDEVCO") today announced that it has entered into a five year Participation Agreement ("PA") and Area of Mutual Interest ("AMI") with a large, Denver, Colorado-based private equity-backed D-J Basin E&P Company with extensive operational experience ("Operator"), pursuant to which the companies have agreed to participate in the joint development of approximately 10,750 net acres collectively held by the companies in the SW Pony Prospect located in Weld County, Colorado. The parties have formed an approximately 16,900 gross acre AMI in the prospect, with PEDVCO holding a
J. Douglas Schick, President of the Company, stated, "We are very pleased to announce this participation agreement with one of the top operators in the D-J Basin which has consistently delivered superior well results over the last decade. Our similar acreage footprints in the SW Pony Prospect make this collaboration a natural fit and will allow both companies to accelerate development and increase production from this highly-prospective area. We look forward to accelerating development in the highly-prospective SW Pony Prospect, which was not in our prior near-term development plans. We are also very pleased to gain a ~
About PEDEVCO Corp.
PEDEVCO is a publicly-traded energy company engaged in the acquisition and development of strategic, high growth energy projects in the United States. The Company's principal assets are its San Andres Asset located in the Northwest Shelf of the Permian Basin in eastern New Mexico, and its D-J Basin Asset located in the D-J Basin in Weld and Morgan Counties, Colorado and Southeastern Wyoming. PEDEVCO is headquartered in Houston, Texas. More information about PEDEVCO can be found at www.pedevco.com.
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward-looking statements, including information about management's view of PEDEVCO's future expectations, plans and prospects, within the meaning of the federal securities laws, including the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions are intended to identify forward-looking statements within the meaning of the Act and such laws, and are subject to the safe harbor created by the Act and applicable laws. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of PEDEVCO and its subsidiaries to be materially different than those expressed or implied in such statements. The forward-looking statements include projections and estimates of the Company's corporate strategies, future operations, development plans and programs, including the costs thereof, drilling locations, estimated oil, natural gas and natural gas liquids production, price realizations, projected operating, general and administrative and other costs, projected capital expenditures, efficiency and cost reduction initiative outcomes, statements regarding future production, costs and cash flows, liquidity and our capital structure. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, risks of our operations not being profitable or generating sufficient cash flow to meet our obligations; risks relating to the future price of oil, natural gas and NGLs; risks related to the status and availability of oil and natural gas gathering, transportation, and storage facilities; risks related to changes in the legal and regulatory environment governing the oil and gas industry, and new or amended environmental legislation and regulatory initiatives; risks relating to crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changing economic, regulatory and political environments in the markets in which the Company operates; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine and the global response to such conflict; actions of competitors or regulators; the potential disruption or interruption of the Company's operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the Company's control; risks related to the need for additional capital to complete future acquisitions, conduct our operations, and fund our business on favorable terms, if at all, the availability of such funding and the costs thereof; risks related to the limited control over activities on properties we do not operate and the speculative nature of oil and gas operations in general; risks associated with the uncertainty of drilling, completion and enhanced recovery operations; risks associated with illiquidity and volatility of our common stock, dependence upon present management, the fact that Dr. Simon G. Kukes, our CEO and member of the Board, beneficially owns a majority of our common stock; our ability to maintain the listing of our common stock on the NYSE American; pandemics, governmental responses thereto, economic downturns and possible recessions caused thereby; inflationary risks and recent increased interest rates, and the risks of recessions and economic downturns caused thereby or by efforts to reduce inflation; risks related to military conflicts in oil producing countries; changes in economic conditions; limitations in the availability of, and costs of, supplies, materials, contractors and services that may delay the drilling or completion of wells or make such wells more expensive; the amount and timing of future development costs; the availability and demand for alternative energy sources; regulatory changes, including those related to carbon dioxide and greenhouse gas emissions; and others that are included from time to time in filings made by PEDEVCO with the Securities and Exchange Commission, many of which are beyond our control, including, but not limited to, in the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections of its Form 10-Ks and Form 10-Qs and in its Form 8-Ks, which it has filed, and files from time to time, with the U.S. Securities and Exchange Commission, including, but not limited to its Annual Report on Form 10-K for the year ended December 31, 2023 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. These reports are available at www.sec.gov.
The Company cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on PEDEVCO's future results and/or could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. PEDEVCO cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
CONTACT:
PEDEVCO Corp.
(713) 221-1768
PR@pedevco.com
SOURCE: PEDEVCO Corp.
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FAQ
What is the new Participation Agreement PEDEVCO (PED) entered into on October 1, 2024?
How many new wells did PEDEVCO (PED) acquire interest in as part of the agreement?
What is the drilling plan for PEDEVCO (PED) in the SW Pony Prospect?
What percentage of PEDEVCO's (PED) D-J Basin acreage is covered by the new Area of Mutual Interest?
