Pedevco Corp. · AMEX:PED
Pedevco — IPAA OGIS (May 2015)
27 slides from Pedevco's conference presentation, May 6, 2015
Slide 1: PEDEVCO Corp. IPAA OGIS Conference Presentation
PEDEVCO CORP. (PACIFIC ENERGY DEVELOPMENT} NYSE MKT: PED IPAA OGIS Conference Presentation April 20, 2015
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward looking statements within the meaning of the Private Secures Litigation Reform Act of 1995, Section 27A of the Secutities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward looking staternents are based on our cur
Slide 3: The Company
THE COMPANY Developing operated oil & gas assets in the Denver-Julesburg Basin (“D-J Basin”) s vals vie Ticker COLORADO i ep + + c ‘ } , Assets ‘ v =, a Headquarters Weld a County 4. “Wattenberg Exfension Operating Subsidiary * Greeley Field & Zones Wattenberg Core Morgan County NYSE MKT: PED 27,000
Slide 4: Key Statistics
KEY STATISTICS Market Cap™ Less: Cash Plus: Debt Plus: Preferred Equity Enterprise Value Proved Reserves!) PV-10 of Proved Reserves(?) Net Production(®) Common Shares Out. Institutional Ownership Insider Ownership $26 million 7 million 49 million 28 million $97 million 15.1 Mmboe $136 million ~700 b
Slide 5: A History of Continuous Growth
A HISTORY OF CONTINUOUS GROWTH NYSE LISTING 2015 JAN 2013 SEP announced IP of 3Loomis FOUNDED PUBLIC LISTING (NYSE MKT: PED) Wells (avg. of 617 BOEPD) 2011 FEB 2012 JUL | Founded as private B bli company ea 2015 FEB a Acquired additional D-J Basin a : interests, divested legacy 2014 MAR non-core acr
Slide 6: PEDEVCO Management Team
PEDEVCO MANAGEMENT TEAM Frank Ingriselll Charman, CEO ‘Michael Peterson President, CFO Clark Moore EVP & General Counsel Past President of Texaco International Operations Past Presicient of Texaco Technology Ventures Past founder and CEO of CAMAC Energy Past CEO of Timan Pechora Company Led team tha
Slide 7: Technical/Operating Experts
TECHNICAL/OPERATING EXPERTS razire energy Tectnicai Services Michael Rozenfeld VP of Geosciences Kris Johnson VP of Operations Hakim Benhammou Manager, Exploration & Production Richard Wilde Manager, Operations je] IS PEDEVO + Co-Founder of South Texas Reservoir Alliance * Former Lead Reservoir Engi
Slide 8: Board of Directors
BOARD OF DIRECTORS Frank Ingriselli Chairman, CEO David C. Crikelair Director 2") ri Elizabeth P. Smith Director + Chairman and CEO of Pacific Energy Development (NYSE: PED) + Founder and former President and CEO of CAMAC Energy + President of Texaco Intemational + President of Texaco Technology Ven
Slide 9: Planned Merger with Dome Energy
Fe PLANNED MERGER WITH DOME ENERGY SsENrRGy Executed Heads of Agreement with Dome Energy in February 2015 * Dome Energy highlights — ~240 producing wells — ~1,250 net boepd (60% gas / 40% oil) — Annualized forecasted EBITDA of $10mm — Conventional operated assets primarily in Texas & Wyoming — $44mm
Slide 10: Benefits of a Combination
BENEFITS OF A COMBINATION (DOME OF) ENERGY Do Operational * Expertise in conventional plays + Diverse portfolio of operated wells + Long-life, low decline production + Low cost & low risk production Financial + Strong balance sheet + Strong cash flow generation + Long-ferm hedges in place considerab
Slide 11: Strength in Numbers
(DOME STRENGTH IN NUMBERS ) ENERGY Combined company anticipates much stronger pro forma metrics at closing Standalone PED Pro Formal!) Production 700 boepdl?) 3,300 boepd Proven Reserves 15 Mmboe 21 Mmboe Debt $49 million $70 million EBITDA (Est.)@) $6 million $35 million Shares 38 million 220 milli
Slide 12: Rationale for Merger with Dome
Fe RATIONALE FOR MERGER WITH DOME =—- SS ENERGY Asset Scale & Diversification Access to Lower Cost Capital 2 coppricht to) ns PEREVCR Cop, Current Cash Flow Complementary Teams er Energy
Slide 13: Company Strategy
COMPANY STRATEGY + Acquisition of Continental's D-J Basin assets in March 2014 Acquire Premier Assets oe + Test spacing / Optimize completions Development methods + Generate Maximize strong returns Shareholder Value + Drill highest “ » Reduce D&C, return locations Strategically Reduce Costs operatin
Slide 14: Investment Highlights
INVESTMENT HIGHLIGHTS Assets in Low Cost, High Return Basin Growth Potential Access to Infrastructure Experienced Management & Board Access to Capital 100% leasehold in D-J Basin Break-even price of $40-60/bbl WTI (15% IRR) ~],000 grass drilling locations (200-250 operated) 100% of wells connected t
Slide 15: 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 70 60 10 eer 1 lAvg: ~$57 Avg: ~$60 Avg: ~$60 Avg: ~$46 I —— eee Eagle Ford 4 _ DJBasin | Anadarko Bakken Permian ee Energy
Slide 16: Oil-Weighted Basin with High IRRs
OIL-WEIGHTED BASIN WITH HIGH IRRs Assumes $55 oil / $3 gas ‘: IRRs by Region 50% 4 paces fe 45% I I 40% I I ws | 30% u I 25% 4 ! I na 1 1 { Pree oe 1 ical Gan Gaus usd pate -1-}- eee ee 10% ! 1 { ! I 5 I ox 1, ? a - 4 Sf 8 5 a pe eae g€2/| 538 eet g 2F 2) g 2a ae § és 34 2 e485 Bee cs 2% £ 3 ¢ A 2 2
Slide 17: PED's Prime Location
PED’S PRIME LOCATION Acreage in the heart of Wattenberg, Wattenberg Extension & Colorado Mineral Belt Weld County . "vox poet wee wa encana ——_ | Morgan County Ene ee Energy — 7 cert a
Slide 18: Wattenberg Core and Extension
WATTENBERG CORE AND EXTENSION Returns consistent with neighboring operators in the D-J Basin 50.0% ° (EUR Mboe) Peers (440) Weld County 40.0% PED so.0% (790) . Peer 4 ES Peer 1 (450) 20.0% 10.0% ° Peer 3 : (275) | 00% Morgan County $40.00 $45.00 $50.00 $55.00 $40.00 ‘ aaa $/bbI Wil @ = Short lateral
Slide 19: Opportunities at Current Oil Prices
OPPORTUNITIES AT CURRENT OIL PRICES PEDEVCO is focused on operated locations in the Wattenberg Core at current oil prices + PED Area of Interest includes the following: — Pooled and spaced 1,280 acre operated drilling unit near Keenesburg, CO - Potential to drill up to 18 wells with 35-84% working i
Slide 20: Downspacing Potential of D-J Basin
DOWNSPACING POTENTIAL OF D-J BASIN Downspacing (more wells per section) and stacked pay (multiple zones) offers potential increase in recovery factors Up to Five Stacked Pay Zones Illustrative Downspacing {16 wells per section) ee Energy 0 ceerenticy 5%
Slide 21: Announced Downspacing Programs
ANNOUNCED DOWNSPACING PROGRAMS Neighboring operators are testing downspacing potential of D-J Basin with success Operator # of wells testing per section Bill Barrett * 32 wells per section Bonanza Creek + 32 wells per section Canizo + 16 wells per section Noble + Up to 24-32 wells per section PDC +
Slide 22: Strong Operator with Recent Success
STRONG OPERATOR WITH RECENT SUCCESS Loomis Pad (7NOW section 2) {Initial Production Announced Jan ‘15) Wells 24H 23H 2-6H Boepd IP 6al 581 590 30-day Boepd”? 381 301 390 Stages 18 18 25 New Increased Tighter Design Enhanced Standard PropRant Spacing ‘Tateral length Morgan Phere con TT Gaaim 340mm 33
Slide 23: Improving Infrastructure Access
IMPROVING INFRASTRUCTURE ACCESS " Multiple 120,000 Bbiid_ Existing Plait 35,000 Bblid 302015 ARB Midstream 70, 2015 T White ci 150,000 Bbiid Existing Pony Express 230,000 BbVd Existing Pony Express, iene 90,000Bbiid 20.2015 Saddlehorn 400,000 Bbvd Mid 2016 Grand Mesa 200,000 Bbid 3.2016, source:tono
Slide 24: 2015 Development Plan
2015 DEVELOPMENT PLAN Inventory of ~1,000 potential gross drilling locations" across 27,000 net acres Gross Total Capex Gross Wells — ($mm)?) Long lateral $22.1 Short lateral 2 01 = $0.3 Lease renewal $1.7 Totals 14 35 $24.1 * Anticipate funding with cash on hand, cash flow, senior debt facility ($1
Slide 25: Recent Transactions in D-J Basin
RECENT TRANSACTIONS IN D-J BASIN PED consistently demonstrates ability to acquire and divest assets at attractive valuations e" Energy Oameer sonnet ‘Acquisition Acquisition Divestiture Date Oct2014 May 2014. Mar 2014 Feb 2015 Feb 2015 Transaction Value ($mm) 125 226 36 Er 5 Production (boepd) 1,240
Slide 26: Conclusion
CONCLUSION Near-term growth drivers include: - Drilling core Wattenberg locations - Downspacing - Improved drilling and completion techniques - Reducing costs - Merger with Dome Opportunity to invest in a HIGH GROWTH company with EXPERIENCED MANAGEMENT during an unprecedented time in the U.S. oil &
Slide 27: 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