PEDEVCO Corp. d/b/a Pacific Energy Development (NYSE MKT: PED) (the "Company") announced today that it has recently elected to participate for its full 25% working interest in seven horizontal wells planned to be drilled and completed by a third party operator in the Wattenberg Area of Weld County, Colorado, which wells are expected to commence drilling in June 2015. These horizontal wells will be located in the same area that the three Pronghorn wells operated by Bonanza Creek are located, in which wells the Company also holds a 25% working interest. These first three Pronghorn wells are among the Company's best performing wells in the D-J Basin, yielding 24-hour peak initial production rates as estimated by the Company of 529.2 BOE/D (459 Bbl oil and 421 Mcf/d gas), 556.2 BOE/D (458.7 Bbl oil and 585 Mcf/d gas), and 542.6 BOE/D (459.2 Bbl oil and 500 Mcf/d gas).
The Company plans to fund these wells through entry into a funding arrangement with Dome Energy AB ("Dome"), the Swedish company with which the Company has recently entered into an Agreement and Plan of Reorganization, and/or other parties, which funding arrangement is planned to provide for the full funding of these wells.
Commenting on these wells and the anticipated funding arrangement with Dome, Mr. Frank Ingriselli, the Company's Chairman and Chief Executive Officer, stated: "We are very excited to participate in these seven additional Pronghorn wells given that our first three Pronghorn wells in this same section yielded such outstanding production rates. We are equally pleased to be working with Dome Energy to structure funding arrangements, with the goal of costing Pacific Energy Development nothing out of pocket. We believe that this planned transaction with Dome will further unify our interests and demonstrates how we believe the combined company will be able to capitalize on development opportunities going forward."