Pedevco Corp. · AMEX:PED
Pedevco — Investor Presentation (March 2020)
26 slides from Pedevco's investor presentation, Mar 11, 2020
Slide 1: Investor Presentation: Spring 2020
"1 EDEW NYSE American; PED ad nS eta Sige Investor Presentation: Spring 2020 5 eS
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This presentation contains forwardlooking statements within the meaning ofthe Private Secures Litigation Reform Act of 1995, Section 27A of the Secures ‘Act of 1933, 9s amended, and Section 21€ of the Securities Exchange Act of 1934, as amended. These forwardooking statem
Slide 3: Investment Highlights
Investment Highlights Newly restructured ‘company with strong Financial Flexibility NYSE American’ PED « Surategic investor and new management team acquired conto of the company in June 2018 and eliminated $75.0 millon In secured and unsecured debt «Pristine Balance sheet. ~S6OMM Market Captalzation
Slide 4: PEDEVCO has Executed the “Reset”
PEDEVCO has Executed the “Reset” PEDEVCO Vs. 12 Year Share Pri + PEDEVCO has demonstrated ee ChartTitle Catena bucking the trend and ‘creating value in a severely ‘depressed market. @ Cesnesrne capita strvcture, lo ‘eting $75 milion of debt, and parachuted experienced ‘management team positioned tob
Slide 5: Meaningful Proved Reserve Profile
Meaningful Proved Reserve Profile * Highly oll weighted reserves drive value creation + B8%oil + $123 million PV-10 * Grow reserves and production through low-risk San Andres infill drilling development program and non-operated participation in Dd Basin asset Year End 2019 Reserves (SEC Pricing) Res
Slide 6: Asset Overview
Asset Overview
Slide 7: Permian Overview
Permian Overview + Average Acreage Cost ~$440/acre = Large, contiguous leasehold position + Chaveroo & Milnesand Oil Fields ‘es umaoe Production 100% wn /-82% NRL 100% HBP & 40% deep rights Son Andes Hr DEC 5 weliscurrety wating on dsposat 13 MMB0E Proves Rezerves YEZON + Chaveroo Northeast Field 10
Slide 8: San Andres Horizontal Performance
San es Horiz | Performance Peak Rate (Boepd) 332 i 09 % B eater 3 i ‘Dm (%) 7 ‘EUR (MBoe) . 385 fis 5,000" Well Net Econ sc (6H) ams i LOE ($/B00) 1024 fe. = oR 9 0 fol (iso) a = Pvio ($M) 3.204
Slide 9: San Andres’ Advantaged Geology
San Andres’ Advantaged Geolog World. voir * Known recovery of 6.7 billion barrels of cil * Well-established, conventional carbonate reservoir composed of porous dolomite with ‘multiple high permeability zones * 110 illion barrels of cil-in-place in San Andres reservoirs across the Permian Basin * Th
Slide 10: San Andres’ Advantaged Geology (Cont.)
San Andres’ Advantaged Geology! (Cont.) Stratigraphic Column and Type Log Northwest Shelf Stratigraphy Period Formation Rustler “Tonsil Yates ‘Seven Rivers ‘Queen | ceayoura | ‘Upper San andres Permian PL Lower [Pz Andres) Pa Gloria Yeso ‘Abe Wileame Pennsylvanian | Pennsylvanian Mississippian | Mis
Slide 11: Differentiating Main Pay Zones and Transition Oil
Differentiating Main Pay Zones and Transition Oil Stratigraphic * Legacy fields exist where oil accumulated in these traps to form thick oil columns (Main Pay Zones) * Early completions stayed above the Oil Water Contact and initially produced water-free oil * Legacy San Andres fields lack sharp Oil
Slide 12: DJ Basin Overview
DJ Basin Overview © 711,900 Net Acres (AN HOP’d) + am im caine east lo nr THY” someon, + + ee = ae + ptr 1050 and lt OF Wt wo the 5 alc eprting et If = Bl ptscreee | | + Peo twee aa + anges topo ae rE sake “i 5 es Hi) Se : water Core ond eon n Neh BC and cade a +) Acreage lcaedin aes experiencing re
Slide 13: Enhanced DJ Basin Well Performance
Enhanced DJ Basin Well Performance 200,000 ‘CUMULATIVE BOE
Slide 14: Niobrara Horizontal Performance
Niobrara Horizontal Performance ory, 7,500° Type Welt Peak Rate (Boepd) 75 Dew) * etetr us r Dm) 8 EUR (MB00) 490 re — 7/500" Well Net Ec x =F EC ($M) 4980 LOE ($/800) 195 ROR () 2 ROI cise) 20 vio (sm) 4931 =
Slide 15: Basin Development Potential
Basin Development Potential Illustrative Downspacing (16 wells per section) tial fo
Slide 16: Development Plan Review
Development Plan Review
Slide 17: Phase I - Infill San Andres Development
Phase | - Infill San dres Developm rE — a |— 2019 pHase SAN ANORES HZ WELL — 2019 ACQUIRED SAN ANORES HZ WELL 2019 SHUT-N SAN ANORES HZ WELL ‘Phase | Goals * Benchmark Well Performance [1 * Optimize Lateral Targets & Infill Spacing + Jennifer 251H & 361H @ 10-Acre Infill Spacing. T} + Haley 305H & 3
Slide 18: Phase II - Infill San Andres Development (2019-2020)
Phase II - Infill San Andres Development (2019-2020) 4 7 77] cs | {2019 pase saw anones na we =I |— 2019 puase 1SAN ANORES HZ WELL J 2019 ACQUIRED SAN ANORES Hz WELL nett ls — rors snutansananoreswzwen | | : 4 Phase ll Update = Phase! Wells Drilled & Completed in @4 2019 —7 4 |_| = Awaiting Results
Slide 19: 2020 CAPEX Budget
2020 CAPEX Budget * 2020 Development program will be heavily dependent on a recovery in oil prices + Since our acreage is mostly HBP'd and we have no drilling obligations, the Company has flexibility to hold back on development in this low price, tough oil and gas environment +The Company also has t
Slide 20: Industry Consolidation
Industry Consolidation
Slide 21: E&P Sector Consolidation - PED's Role
E&P Sector Consolidation - PED's Role Challenges facing small E&P companies + Oil price hovering below $50/8bI and natural gas under $2.00/Mmbtu significantly impairs the ability for small operators to be profitable (asset level returns similar to larger companies; corporate returns are lower; March
Slide 22: Consolidation of Current Asset Base
olidation of Current Asset Base ontal San ‘consoldation Highlights PED is one of only two public ‘companies focused on the play. PED in under 2 years has acquired over 38,000 net acres inthe play. © PED has bid on several large asset packages, however current bid/ask spreads have prevented a large ‘
Slide 23: Consolidation of Current Asset Base - DJ Basin Activity
Consolidation of Current Asset Base — DJ Basin Activity {Consolidation Highlights ©The Di Basin is ripe for consolidation as the basin is filled with public and private equity-backed companies with large non-contiguous overlapping leasehold positions (collaboration is necessary). * New regulations r
Slide 24: Well Positioned to Deliver Profitable Growth
Well Positioned to Deliver Profitable Growth Strong Balance Sheet with Financial [| Flexibility _
Slide 25: Appendix
Appendix
Slide 26: Management Team
Management Team De tes has served as the pri of hs investment company, S€ Energy LUC since 2013. From 200 to 2013, he served 5 CED of amare af, which patered with Mes Corporation. Prt that he was President and CEO of Tyumen Oi Company om 1996 uni t combined wih Beith Petroleum 2003 to crete "CBP. Fl