Pedevco Corp. · AMEX:PED
Pedevco — Investor Presentation (February 2015)
28 slides from Pedevco's investor presentation, Feb 24, 2015
Slide 1: PEDEVCO Corp. Investor Presentation
Exhibit 99.2 PEDEVCO CORP. (PACIFIC ENERGY DEVELOPMENT) NYSE MKT: PED Investor Presentation February 24, 2015 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward looking statements are based on our c
Slide 3: Transaction Summary
TRANSACTION SUMMARY In February 24, 2015, the Company announced three major transactions that strengthen and position the Company for long-term success and growth D-J Basin Asset Acquisition Acquired approximately 13,000 net D-J Basin acres and interests in 53 gross wells producing approximately 500
Slide 4: Summary
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 (as of 02/19/15), $35.3mm in Secured Promissory Notes @ 15% due March 2017 $4.9mm in Secured Subordinated
Slide 5: Oil Field Asset in the U.S.
OIL FIELD ASSET IN THE U.S. Focus on the Denver-Julesburg Basin (“D-J Basin”) D-J Basin Asset ~27,000 net acres predominantly in Weld County, Colorado 53 producing wells (including 22 after-payout wells) Operate 14 gross (13 net) wells 30-day average production of ~360 boepd per well for 3 gross ope
Slide 6: A History of Continuous Growth
A HISTORY OF CONTINUOUS GROWTH FOUNDED 2011 FEB Founded as private company 2011 NOV Acquired legacy, non-core Niobrara asset PUBLIC LISTING 2012 APR START PRODUCTION 2012 JUL Became a public company NYSE LISTING 2013 SEP (NYSE MKT: PED) 2014 MAR Acquired ~14,000 net acres and 40 producing wells in D
Slide 7: Management Team
MANAGEMENT TEAM Frank Ingriselli Chairman, CEO, Past President of Texaco International Operations Past President of Texaco Technology Ventures Past founder and CEO of CAMAC Energy Past CEO of Timan Pechora Company Led team that established the first successful Chinese oil contract by a foreign entit
Slide 8: Technical/Operating Experts
Technical/Operating Experts Pacific Energy Technical Services Sean Fitzgerald VP of Business Development, Former Lead Business Development Engineer at Rosetta Resources & Lead Reservoir Engineer at Shell Led over $350M in completed acquisition including the Mid-Continental, Gulf Coast, Gulf Coast Sh
Slide 9: Board of Directors
BOARD OF DIRECTORS Frank Ingriselli Chairman, CEO, Chairman and CEO of Pacific Energy Development (NYSE: PED) Founder and former President and CEO of CAMAC Energy President of Texaco International President of Texaco Technology Ventures CEO of Timan Pechora Company Led team that established the firs
Slide 10: Company Strategy
COMPANY STRATEGY Acquire assets in prime locations March 2014 acquired ~14,000 net acres and 40 producing wells in Colorado’s Wattenberg and Wattenberg Extension from Continental Resources February 2015 acquired additional ~13,000 net acres and working interests in 53 producing wells in existing foo
Slide 11: D-J Basin Asset Acquisition
D-J BASIN ASSET ACQUISITION In Feb 2015, acquired approximately 13,000 net D-J Basin acres and interests in 53 gross wells producing approximately 500 boepd Doubles production (to 1,000 boepd), reserves and cash flow while only increasing debt ~8% Enables Company to become cash flow positive Assets
Slide 12: Divestiture of Legacy Non-Core Acreage
DIVESTITURE OF LEGACY NON-CORE ACREAGE In Feb 2015, sold approximately 2,300 net non-core acres, including Condor Subsidiary for $4.7mm(1) Sold 20% interest in Condor Energy Technology, LLC (“Condor”) to MIE Jurassic Energy Corp. (“MIEJ”), the 80% owner of Condor Sold ~945 net acres and interests in
Slide 13: Pre-/Post-Transaction Highlights
PRE- / POST-TRANSACTION HIGHLIGHTS Comparison of Company before and after the D-J Basin Asset Acquisition and Divestiture of Legacy Non-Core Acreage Pre-transactions, Post-transactions Net Acres, ~16,500, ~27,000 Producing Wells (Gross / Net), 58 / 10, 53 / 17 Operated Wells (Gross / Net), 19 / 8, 1
Slide 14: Planned Acquisition of Dome Energy
PLANNED ACQUISITION OF DOME ENERGY Heads of Agreement whereby Company will acquire 100% of Dome’s U.S. assets (Feb 2015) Produces ~1,250 net boepd from conventional assets (primarily gas; core operated assets in TX and WY) Combined companies will have ~220 million shares outstanding 79.4 million of
Slide 15: Investment Highlights
INVESTMENT HIGHLIGHTS Significant Position in Low Cost, High Return Basin, 100% of PED’s total U.S. leasehold in the D-J Basin Break-even price of $40-60 per barrel WTI (min. of 15% IRR) D-J Basin generates among highest IRRs in U.S. shale plays At $50 WTI, ample locations producing 20+% IRR Growth
Slide 16: D-J Basin Among Lowest Cost Basins in U.S.
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 16
Slide 17: Oil-Weighted Basin with High IRRs
OIL-WEIGHTED BASIN WITH HIGH IRRs Assumes $55 oil / $3 gas *Source: Bloomberg LP and Wells Fargo Securities, LLC Research January 2015 17
Slide 18: D-J Basin's Weld County Remains Resilient
D-J BASIN’S WELD COUNTY REMAINS RESILIENT Rig Count indexed since June ‘14 (WTI 52-week high of $107.95) 48 rigs in the D-J Basin; 45 rigs located in Weld County where PEDEVCO leases acreage Source: Baker Hughes, as of February 6, 2015 18
Slide 19: PED's Prime Location
PED’S PRIME LOCATION Acreage in the heart of Wattenberg, Wattenberg Extension & Colorado Mineral Belt 19
Slide 20: Wattenberg Core and Extension
WATTENBERG CORE AND EXTENSION Strong returns vs. peers’ reported returns at all oil prices Ticker (EUR Mboe)(1) PED (630)(2) Peer 1 (433)(3 Peer 2 (420) Peer 3 (825)(2) Peer 4 (313) Peer 5 (253) Source: Company Investor Presentations Note: Peers include BBG, BCEI, CRZO, PDCE and WLL (1) Assume short
Slide 21: Opportunities at Current Oil Prices
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 & Codell) Using EnCana’s Gurtler type curve (see chart below), Company a
Slide 22: Downspacing Potential of D-J Basin
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 Zones Down-Spacing Success of down-spacing proven by Noble Energy on Wattenberg *Source: Credit Su
Slide 23: Announced Downspacing Programs
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 wells per section Noble, Up to 24-32 wells per section PDC, 20
Slide 24: Strong Operator with Recent Success
STRONG OPERATOR WITH RECENT SUCCESS Loomis Pad (7N60W section 2) (Initial Production Announced Jan ‘15) Wells, 2-1H, 2-3H, 2-6H Boepd IP, 681, 581, 590 30-day Boepd, 381, 301, 390 NRI, 80%, 80%, 80% Net 30-day Boepd, 305, 241, 312 Stages, 18, 18, 25 Design, New Enhanced Standard, Increased Proppant,
Slide 25: Improving Infrastructure Access
IMPROVING INFRASTRUCTURE ACCESS Anticipate further reduction in differential & LOE costs as infrastructure access increases Rail Capacity by YE 2015 Pipeline Capacity by YE 2016 ~10 miles from PED acreage Source: Bonanza Creek January 2015 Investor Presentation 25
Slide 26: Recent Transactions in D-J Basin
RECENT TRANSACTIONS IN D-J BASIN PED consistently demonstrates ability to acquire and divest assets at attractive valuations Date, Oct 2014, May 2014, Mar 2014, Feb 2015, Feb 2015 Transaction Value ($mm), 125, 226, 35, 39, 5 Production (boepd), 1,240, 700, 200, 500, 26 $ per bbl/d, $60,000, $80,000,
Slide 27: Conclusion
CONCLUSION PED is uniquely positioned to develop its assets in the D-J Basin, one of the fastest growing, lowest cost shale plays in the U.S. Management acted decisively to significantly increase the size of the Company, monetize non-core assets and lay groundwork for a business combination Increase
Slide 28: Contact Information
CONTACT INFORMATION CORPORATE HEADQUARTERS 4125 Blackhawk Plaza Circle, Suite 201 Danville, CA 94506 Tel: 855-PEDEVCO / 925-271-9314 contact@pacificenergydevelopment.com Corporate website: www.PacificEnergyDevelopment.com Investor Relations Contacts: Stonegate Securities scott@stonegateinc.com 214-9