PEDEVCO CORP. (PACIFIC ENERGY DEVELOPMENT) NYSE MKT: PED The Oil & ServicesTM Conference Presentation February 19, 2015
SUMMARY Overview A dynamic energy company focusing on high-growth, early cash flow energy projects Focus Shale and conventional oil and gas in the U.S. Ticker NYSE MKT: PED Capital Structure 35.8mm in Secured Promissory Notes 15% due…
OIL FIELD ASSET IN THE U.S. Focus on the Denver-Julesburg Basin (D-J Basin) D-J Basin Asset 16,500 net acres in Weld and Morgan Counties, Colorado 58 producing wells (including 22 after-payout wells) Operate 19 gross wells 30-day…
A HISTORY OF CONTINOUS GROWTH 2014 JUN 1P = 5.6mm BOE 3P = 13.5mm BOE FOUNDED PUBLIC LISTING NYSE LISTING 2011 FEB 2012 JUL 2013 SEP Founded as private Became a public (NYSE MKT: PED) company company 2015 JAN Announced IP of…
MANAGEMENT TEAM Frank Ingriselli Past President of Texaco International Y.M. Shum Held senior management positions in E&P Chairman, CEO Operations Chief Technology at Texaco Past President of Texaco Technology Officer Lead first foreign…
BOARD OF DIRECTORS Frank Ingriselli Chairman and CEO of Pacific Energy Development (NYSE: PED) Chairman, CEO Founder and former President and CEO of CAMAC Energy President of Texaco International President of Texaco Technology…
COMPANY STRATEGY Acquire assets in prime locations March 2014 acquired 14,000 net acres and 40 producing wells in Colorados Wattenberg and Wattenberg Extension from Continental Resources Optimize operated development of core…
INVESTMENT HIGHLIGHTS 100% of PEDs total U.S. leasehold in the D-J Basin Significant Position in Low Break-even price of 40-60 per barrel WTI (min. of 15% IRR) Cost, High Return Basin D-J Basin generates among highest IRRs in U.S. shale…
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 11 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 12 Copyright (c) 2015 PEDEVCO Corp.
D-J BASINS WELD COUNTY REMAINS RESILIENT Rig Count indexed since June 14 (WTI 52-week high of 107.95) Rig Count Comparison 48 rigs in the D-J Basin; 45 rigs 120% 1,200 located in Weld County where PEDEVCO leases acreage Indexed…
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 14 Copyright (c) 2015 PEDEVCO Corp.
WATTENBERG CORE AND EXTENSION Strong returns vs. peers reported returns at all oil prices 70% Ticker (EUR Mboe)(1) Weld 60% County 50% PED (630)(2) 40% Peer 2 IRR 30% Peer 1 (420) (433)(3) Peer 3 Greele (825)(2) y…
OPPORTUNITIES AT CURRENT OIL PRICES PEDEVCO is focused on operated locations in the Wattenberg Core at current oil prices Pooled and spaced 1,280 acre operated drilling unit with permits to drill up to 16 wells (mix of Niobrara &…
DOWNSPACING POTENTIAL OF D-J BASIN Downspacing (more wells per section) and stacked pay (multiple zones) offers potential increase in recovery factors on the D-J Basin play Recovery Factors Stacked Pay Down- Zones Spacing…
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…
SIGNIFICANT GROWTH IN RESERVES & REVENUE 1P RESERVES 6,000 5,617 4,500 5,000 REVENUE 4,000 4,000 MBOE 3,000 3,500 2,000 3,000 1,000 THOUSANDS 523 2,500 0 End of 2013 Current (1) 7X 2,000 3P RESERVES…
DEVELOPMENT POTENTIAL IN D-J BASIN 1P Reserves Over 92% PUD reserves offering D-J Basin significant development potential Net Acres 16,500 2P Reserves Potential 76% increase in Gross Drilling locations 1,468* economic value (1P vs.…
STRONG OPERATOR WITH RECENT SUCCESS Loomis Pad (7N60W section 2) (Initial Production Announced Jan 15) Weld Wells 2-1H 2-3H 2-6H Boepd IP 681 581 590 30-day Boepd 381 301 390 NRI 40% 40% 40% Net 30-day Greeley 152 120 156…
IMPROVING INFRASTRUCTURE ACCESS Anticipate further reduction in differential & LOE costs as infrastructure access increases 10 miles Rail Capacity by YE 2015 from PED acreage DJ Lateral (90 Mb/d) Q2 2015 Pipeline Capacity by…
RECENT TRANSACTIONS IN D-J BASIN High Low Transactions around PEDs acreage in the Net Acres Value 145 mm 81 mm D-J Basin substantiate PEDs valuation (16,500 net acres) Production Value 42 mm 4 wells 32 mm Based upon a variety of…
LOW OIL PRICES CREATE UNPARALLELED OPPORTUNITIES Acquisition of producing assets and organic leasing Increase in oil & gas assets for sale due to uncertainty of prices D-J Basin leases entered into in 2010 for 5 years are rolling off…
CONCLUSION PED is uniquely positioned to develop its asset in the D-J Basin, one of the fastest growing, lowest cost shale plays in the U.S. Well economics are unmatched elsewhere in the U.S., which are supported by rig count growth…
CONTACT INFORMATION CORPORATE HEADQUARTERS 4125 Blackhawk Plaza Circle, Suite 201 Danville, CA 94506 Tel: 855-PEDEVCO / 925-271-9314 contactpacificenergydevelopment.com Corporate website: www.PacificEnergyDevelopment.com…
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