Pacific Energy Development Announces Drilling Approval and Initial Drilling Plans on Its Recently Acquired Wattenberg Asset
June 18 2014 - 8:30AM
Marketwired
Pacific Energy Development Announces Drilling Approval and Initial
Drilling Plans on Its Recently Acquired Wattenberg Asset
DANVILLE, CA--(Marketwired
- June 18, 2014) - PEDEVCO Corp. d/b/a Pacific Energy
Development (NYSEMKT: PED), an
energy company engaged in the acquisition and development of
strategic high-value energy projects in the U.S. and Asia, today
announced that on June 17, 2014 the Company 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.
"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," said Frank C. Ingriselli, President and CEO of the
Company.
About Pacific Energy Development (PEDEVCO Corp.)
PEDEVCO Corp, d/b/a Pacific Energy Development (NYSEMKT: PED), is a publicly-traded energy
company engaged in the acquisition and development of strategic,
high growth energy projects, including shale oil and gas assets, in
the United States and Asia. The Company's principal assets include
its Niobrara asset located in the DJ Basin in Colorado, its
Mississippian asset located in Comanche, Harper, Barber and Kiowa
Counties, Kansas, and its North Sugar Valley asset located in
Matagorda County, Texas. The Company has also previously announced
its entry into an agreement to acquire a working interest in a
380,000 acre producing asset located in the Pre-Caspian Basin, one
of the largest producing basins in Kazakhstan, which acquisition is
pending Kazakhstan government approval. Pacific Energy
Development is headquartered in Danville, California, with offices
in Houston, Texas and Beijing, China.
Forward-Looking Statements
All statements in this press release that are not based on
historical fact are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. While management has based any forward-looking statements
contained herein on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of the
Company's control, that could cause actual results to materially
differ from such statements. Such risks, uncertainties, and other
factors include, but are not necessarily limited to, those set
forth under Item 1A "Risk Factors" in the Company's Annual Report
on Form 10-K for the year ended December 31, 2013. The Company
operates in a highly competitive and rapidly changing environment,
thus new or unforeseen risks may arise. Accordingly, investors
should not place any reliance on forward-looking statements as a
prediction of actual results. The Company disclaims any intention
to, and undertakes no obligation to, update or revise any
forward-looking statements. Readers are also urged to carefully
review and consider the other various disclosures in the Company's
public filings with the SEC.
ContactsPacific Energy Development Bonnie Tang1-855-733-3826 ext
21 (Media) PR@pacificenergydevelopment.comInvestor
Relations:Liviakis Financial Communications, Inc. John
Liviakis +1-415-389-4670 john@liviakis.comStonegate, Inc.
Casey Stegman 214-987-4121 casey@stonegateinc.com
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