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Pedevco Planning 79 HZ Wells at New Wattenberg Asset

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   |    Wednesday,June 18,2014

PEDEVCO Corp. d/b/a Pacific Energy Development has received approval from the Oil and Gas Conservation Commission of the State of Colorado (COGCC) for the drilling of up to 79 new horizontal wells comprising 7 spacing units covering a total of approximately 6,700 gross acres in the Company's recently acquired Wattenberg Asset located in Weld County, Colorado.

With these approvals now in hand, today the Company also announced its plans to commence its initial drilling operations in mid-August 2014 with the planned drilling and completion of 3 horizontal wells from a single pad, with each well receiving an 18 stage enhanced frac treatment with lateral lengths between 4,000 and 4,500 feet, and with completion and initial results expected to be available in mid-October 2014.

The Company anticipates that it will have an approximately 45% net working interest in each of these wells, and that each well will be drilled and completed for approximately $4.2 million. The Company will use cash on hand and an established drilling credit line to pay the cost of drilling and completing these wells. 

In April, the Company participated as a non-operator in 3 very successful wells drilled in its new Wattenberg acreage and has previously successfully drilled and completed 5 wells in its legacy Niobrara Asset. Currently the Company operates 16 wells, has a non-operated interest in 16 additional wells, and has an after-payout interest in 14 wells. These 3 new wells will be the first wells to be operated by the Company on its recently acquired Wattenberg Asset, with the Company planning to drill, and participate in the drilling of, approximately 16 total wells (equivalent to 6 net wells to PED) during 2014 in its Wattenberg and Niobrara Assets, including both operated and non-operated wells. Both the Wattenberg and Niobrara Assets are located in the DJ Basin and substantially in Weld County, Colorado. 

Frank C. Ingriselli, President and CEO of the Company, commented: "We are excited to spud and complete our first operated wells on our newly acquired Wattenberg Asset, leveraging and expanding upon our knowledge and technical expertise as an operator in the DJ Basin as we continue to carry out our 2014 development and production drilling program, which we expect will further strengthen our cash flow and allow us to capitalize on other growth opportunities."