PEDEVCO Corp. ("PEDEVCO" or the "Company"), an energy company engaged in the acquisition and development of strategic, high growth energy projects in the U.S., provided an operational update on its three newly drilled and completed horizontal San Andres wells in its Permian Basin Asset as follows:
The Company drilled and completed three horizontal San Andres wells in its core Chaveroo Field in the Permian Basin with its strategic partner Evolution Petroleum Corporation.
The wells were drilled in Q4 2023 and completed in January 2024, with first production commencing the last week of January 2024 on one well and early February 2024 for the other two wells.
All three wells peaked at between approximately 300 to 375 gross barrels of oil equivalent ("BOEPD") per well (~80% oil) in late February.
The Company is pleased with the early production results, with the wells currently performing in line with expectations, but with shallower, better-than-expected declines which have yielded an average of over 750 BOEPD gross for the last 30 days.
The Company is working with Evolution to plan the next phase of development over the coming months.
As previously announced, in September 2023 the Company and Evolution entered into a Participation Agreement to jointly develop the Company's Chaveroo oilfield in the Northwest Shelf of southeastern New Mexico, a conventional oil-bearing San Andres field in the Permian Basin located in Chaves and Roosevelt Counties. The agreement covers approximately 16,000 gross acres with average working interest ("WI") and net revenue interest ("NRI") of 100% and 82%, respectively, all currently owned by PEDEVCO. Evolution has farmed-in for a 50% WI in these initial three wells, and will farm-in for an average 50% WI in all future horizontal drilling locations on a block-by-block basis in which it elects to participate, with PEDEVCO remaining the operator with a working interest equal to Evolution in all wells that we jointly develop.