Benzinga | Mar 23, 2021 06:13AM EDT

PEDEVCO Announces New Wells, Says Sale Of Non-Core Assets In D-J Basin Added ~$1.9M In Cash

HOUSTON, TX / ACCESSWIRE / March 23, 2021 / PEDEVCO Corp. (NYSE:PED) (the "Company") today announced the results of two horizontal San Andres wells drilled and completed in its Phase II development program, as well as the sale of certain non-core assets in the D-J Basin which added approximately $1.9 million in cash to the Company's balance sheet.

Highlights

* Initiated production on the Haley Chaveroo SA Unit 301H (Haley 301) and the Haley Chaveroo SA Unit 303H (Haley 303), each with an approximately 4,800-foot horizontal section in the San Andres formation

* Brought Haley 301 onto production with an average thirty-day peak initial production rate (IP30) of 428.6 gross barrels of oil equivalent per day (BOEPD) (85% oil)

* Brought Haley 303 onto production with an average thirty-day peak initial production rate (IP30) of 178.4 gross barrels of oil equivalent per day (BOEPD) (84% oil)

* Sold approximately 230 net leasehold acres in the D-J Basin for $6,000 per net acre, adding approximately $1.38 million in cash proceeds

* Sold non-operated working interest in one well located on the divested acreage position for $500,000, for a total of approximately $1.9 million cash added to the balance sheet

J. Douglas Schick, President, commented, "We are encouraged by the IP30 rates of these two San Andres wells, which we believe further demonstrate the development potential of our Permian Basin Asset. We are also pleased to receive top-dollar for the sale of these non-core D-J Basin assets, which represent less than 2% of our total D-J Basin acreage. We believe that we are uniquely positioned with over $18.5 million of free cash, zero debt, and significant highly-prospective drilling inventory, which advantages we plan to aggressively leverage to develop our assets, pursue accretive merger and acquisition opportunities, and seek to deliver shareholder value."