PEDEVCO CORP. (PACIFIC ENERGY DEVELOPMENT) NYSE MKT: PED LD Micro Conference Presentation June 1, 2015
THE COMPANY Developing operated oil & gas assets in the Denver-Julesburg Basin (D-J Basin) Ticker NYSE MKT: PED COLORADO Assets 27,000 net acres 53 gross wells 14 gross operated wells Headquarters Danville, CA Weld…
KEY STATISTICS Market Cap(1) 24 million Proved Reserves by Category Less: Cash(2) 5 million 7% Plus: Debt 49 million Plus: Preferred Equity 28 million Large 15.1 Growth MMboe Enterprise Value 96 million Opportunity 93% PDP…
A HISTORY OF CONTINUOUS GROWTH NYSE LISTING 2013 SEP FOUNDED (NYSE MKT: PED) 2015 JAN 2011 FEB PUBLIC LISTING 2012 JUL Announced IP of 3 Loomis Wells (avg. of 617 BOEPD) Founded as private company Became a public company 2015…
PLANNED MERGER WITH DOME ENERGY Executed Agreement and Plan of Reorganization with Dome Energy in May 2015 Dome Energy highlights 240 producing wells 1,250 net boepd (60% gas / 40% oil) Annualized forecasted EBITDA of 10mm…
BENEFITS OF A COMBINATION Dome Strengths PED Strengths Operational Operational Expertise in conventional plays Expertise in unconventional plays Diverse portfolio of operated wells Large operated drilling inventory Long-life, low…
STRENGTH IN NUMBERS Combined company anticipates much stronger pro forma metrics at closing Standalone PED Pro Forma(1) Production 700 boepd(2) 3,300 boepd Proven Reserves 15 Mmboe 21 Mmboe Debt 49 million 70 million EBITDA…
RATIONALE FOR MERGER WITH DOME Asset Scale & Current Cash Diversification Flow Access to Lower Complementary Cost Capital Teams 12 Copyright (c) 2015 PEDEVCO Corp.
COMPANY STRATEGY Acquisition of Continentals D-J Basin assets in March 2014 Acquire Premier Assets Generate Maximize Test spacing / Optimize completions strong returns Shareholder Development methods Value Drill highest…
INVESTMENT HIGHLIGHTS Assets in Low Cost, High 100% leasehold in D-J Basin Return Basin Break-even price of 40-60/bbl WTI (15% IRR) Growth Potential 1,000 gross drilling locations (200-250 operated) 100% of wells connected to gas…
D-J BASIN AMONG LOWEST COST BASINS IN U.S. Breakeven oil prices by basin to achieve 15% IRR *Source: Bloomberg LP and Wells Fargo Securities, LLC Research October 2014 15 Copyright (c) 2015 PEDEVCO Corp.
OIL-WEIGHTED BASIN WITH HIGH IRRs Assumes 55 oil / 3 gas *Source: Bloomberg LP and Wells Fargo Securities, LLC Research January 2015 16 Copyright (c) 2015 PEDEVCO Corp.
PEDS PRIME LOCATION Acreage in the heart of Wattenberg, Wattenberg Extension & Colorado Mineral Belt Weld County Greeley 4 wells 3 wells 1 well Morgan County 17 Copyright (c) 2015 PEDEVCO Corp.
WATTENBERG CORE AND EXTENSION Returns consistent with neighboring operators in the D-J Basin 70.0% (EUR Mboe) 60.0% Peer 4 50.0% PED (440) (800)(1) 40.0% IRR Peer 5 30.0% (450) Peer 1 20.0% (743) Peer 2 Peer 3 10.0%…
OPPORTUNITIES AT CURRENT OIL PRICES PEDEVCO is focused on operated locations in the Wattenberg Core at current oil prices PED Area of Interest includes Weld County the following: Pooled and spaced 1,280 acre operated drilling unit…
DOWNSPACING POTENTIAL OF D-J BASIN Downspacing (more wells per section) and stacked pay (multiple zones) offers potential increase in recovery factors Up to Five Stacked Pay Zones Illustrative Downspacing (16 wells per section) 1…
ANNOUNCED DOWNSPACING PROGRAMS Neighboring operators are testing downspacing potential of D-J Basin with success Operator of wells testing per section Bill Barrett 32 wells per section Bonanza Creek 32 wells per section Carrizo 16…
STRONG OPERATOR WITH RECENT SUCCESS Loomis Pad (7N60W section 2) Weld (Initial Production Announced Jan 15) Wells 2-1H 2-3H 2-6H Boepd IP 681 581 590 30-day Boepd(1) 381 301 390 Stages 18 18 25 Greeley New Increased Tighter…
IMPROVING INFRASTRUCTURE ACCESS Anticipate further reduction in differential & LOE costs as infrastructure access increases Rail Capacity by YE 2015 10 miles from PED acreage Pipeline Capacity by YE 2016 Source: Bonanza Creek…
2015 DEVELOPMENT PLAN Inventory of 1,000 potential gross drilling locations(1) across 27,000 net acres Gross Total Capex Assets Gross Wells Net Wells mm/well (mm)(2) Long lateral 12 3.4 6.5 22.1 Short lateral 2 0.1 3.3 0.3 Lease…
RECENT TRANSACTIONS IN D-J BASIN PED consistently demonstrates ability to acquire and divest assets at attractive valuations 4 wells Acquisition Acquisition Divestiture Date Oct 2014 May 2014 Mar 2014 Feb 2015 Feb 2015…
CONCLUSION Near-term growth drivers include: Drilling core Wattenberg locations Downspacing Improved drilling and completion techniques Reducing costs Merger with Dome Opportunity to invest in a HIGH GROWTH company with…
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