PEDEVCO Investor Presentationcontent.stockpr.com/pacificenergydevelopment/db/...– March 2014...

PEDEVCO CORP.(PACIFIC ENERGY DEVELOPMENT)

NYSE MKT: PED

LD Micro Conference PresentationDecember 3, 2014

CAUTIONARY STATEMENT

Copyright (c) 2014 PEDEVCO Corp.

This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forwardlooking statements are based on our current expectations about our company, our properties, our estimates of requiredcapital expenditures and our industry. You can identify these forward looking statements when you see us using words suchas "expect”, "will", "anticipate," "indicate," "estimate," "believes," "plans" and other similar expressions. It is important to notethat any such forward looking statements are not guarantees of future performance and involve a number of risks anduncertainties. Actual results could differ materially from those projected in such forward-looking statements. Factors thatcould cause actual results to differ materially from those projected in such forward-looking statement include: thepreliminary nature of well data, including permeability and gas content, and commercial viability of the wells; risk anduncertainties associated with exploration, development and production of oil and gas; drilling and production risks; our lackof operating history; limited and potentially inadequate cash resources; expropriation and other risks associated withforeign operations; matters affecting the oil and gas industry generally; lack of oil and gas field goods and services;environmental risks; changes in laws or regulations affecting our operations, as well as other risks described in PEDEVCOCorp.’s public filings with the U.S. Securities and Exchange Commission (the “SEC”). We undertake no obligation to publiclyupdate any forward looking statements for any reason, even if new information becomes available or other events occur inthe future. We caution you not to place undue reliance on those statements.

Definition of Technical Terms: Certain technical terms used in this presentation associated with descriptions of the potentialfor oil and gas properties are not consistent with “Proved Reserves” as defined by the SEC.

Note to Investors: This presentation contains information about adjacent properties on which we have no right to explore.Investors are cautioned that petroleum deposits on adjacent properties are not necessarily indicative of such deposits onour properties. This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction

where the offer or sale is not permitted.

2

http://www.pacificenergydevelopment.com/


SUMMARY

3 Copyright (c) 2014 PEDEVCO Corp.

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.

Strategic Partners MIE Holdings Corporation (HK: 1555) – one of the largest independent upstream oil companies in China, and Golden Globe, a subsidiary of a billion dollar fund.

Ticker NYSE MKT: PED

Capital Structure (as of 11/11/14)

29.8 M total shares (34.6 M fully diluted)$36 million in Secured Promissory Notes @ 15% due March 2017$6.2 million in Secured Subordinated Promissory Notes @ 10%

Company Reserve Engineers Ryder Scott Co. LP / South Texas Reservoir Alliance LLC

Corporate Headquarters Danville, CA



6,686 gross (3,283 net) acres in Harper,

Barber and Kiowa Counties, Kansas

49.1% working interest + operatorship

CORE OIL FIELD ASSETS IN U.S.

Mississippian Asset

DJ Basin Asset

~18,300 net acres in Weld and

Morgan Counties, Colorado

47 producing wells (including 15 after-

payout wells)

Operate 16 gross wells

Commenced completion of 3 gross

operated wells November 2014

Key area of focus for 2015

development

Focus on liquids in proven shale plays

4

100%-owned

subsidiary

20%-owned

joint venture



NET

AC

RES

ACREAGE HOLDING

A HISTORY OF CONTINOUS GROWTH

Copyright (c) 2014 PEDEVCO Corp. 5

2011 FEBFounded as private

company

PUBLIC LISTING2012 JUL

Became a public

company

START PRODUCTION2012 APR

2013 MARAcquired

Mississippian asset

NYSE LISTING2013 SEP(NYSE MKT: PED)

2014 MAR Acquired

Wattenberg asset

FOUNDEDQ2 2014

2011 NOVAcquired Niobrara

asset

1P = 5.6M BOE

3P = 13.5M BOE




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 entity

Y.M. Shum

Chief Technology Officer

• Held senior management positions in E&P at Texaco

• Lead first foreign offshore oil discovery in China

• Led largest enhanced oil recovery in history for Texaco

• Head of Texaco in Beijing for almost a decade

• PhD, Brown University

Michael Peterson

President, CFO

• Past Chairman and CEO of Solargen Energy, Inc.

• Past Interim CEO and Director of Blast Energy Services

• Founder and Managing Partner - Pascal

Management

• Past Managing Partner, Co-founder and Director of Venture Investing - American International Partners

• First Vice President, Merrill Lynch

• Vice President, Goldman Sachs

Gregory Rozenfeld

Development & Operations Officer

• Division Manager, Project Evaluation, M&A – Lukoil-Overseas, Moscow, Russia

• VP Upstream & Special Projects – Sidan, Moscow

• Project Manager, International Asset

Management, Texaco Power and Gasification Division, U.S.

• VP, Texaco International Operations, Inc.

Clark Moore

EVP & General Counsel

• Past Lead in-house Corporate Counsel and Secretary of CAMAC Energy

• Former attorney at the law firms of Venture Law Group and Heller Ehrman LLP

• J. D. degree with distinction from Stanford Law School

MANAGEMENT TEAM




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 Shelf, West Coast, and Rockies

• BS Petroleum Engineering from the University of Texas at Austin; licensed petroleum engineer in Texas

Michael RozenfeldVP of Geosciences

• Former Lead Reservoir Engineer and Petrophysicist at Rosetta Resources and Shell

• Proven record of success in leasing, planning, and drilling vertical and horizontal wells in conventional, tight gas, and shale plays


Kristopher Johnson

VP -Operations

• Former Asset & Operations Engineer at Citation Oil &d Gas

• Led the development of various multi-well exploration drilling programs at Citation

• Proven record in large oil and gas properties management, capital projects implementation and acquisition opportunity development


Cindy Welch

Manager,Geosciences

• Geoscientist with over 10 years of experience at Chevron and other majors

• Expertise in carbonate depositional systems, sequence stratigraphy, petrophysics &waterflood analysis.

• Drilled over 100 horizontal and vertical wells in multiple reservoirs in the Permian Basin, Oklahoma & Monterey shale

• MS in Geology and a BS in Geophysics from Texas Tech University

Hakim Benhammou

Manager, Exploration & Production

• Reservoir production specialist. Has optimized & improved thousands of producing oil & gas wells

• Instrumental in drilling and completing Bone Springs horizontals and recompletions years before the play was on the map

• International experience in Morocco and Spain, drilling company’s first international wells in logistically challenging desert environments

• BS Petroleum Engineering from the University of Texas at Austin

Richard Wilde

Manager, Operations

• Lead operator; has overseen the drilling of over 400 horizontal wells (4.4 million FT)

• Managed drilling rig scheduling of up to 25 rigs in his previous career at XTO in partnership with Exxon

• Optimized 175 wells resulting in a 300% increase in production while reducing drilling costs by 50%

• Reduced drill times from 25 days to 10 days while increasing laterals lengths by thousands of feet

• BS Petroleum Engineering from the University of Texas at Austin

TECHNICAL/OPERATING EXPERTS Pacific Energy Technical Services



BOARD OF DIRECTORS


Frank Ingriselli

Chairman, CEO

• President 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 first successful Chinese oil contract by a foreign entity

David C. Crikelair

Director

• Over 40 years experience in corporate finance, banking, capital markets and financial

reporting in the energy industry

• Managing Partner, FrontStreet Partners, LLC

• Vice President, Treasurer, and Head of Alternate Energy, Texaco Inc.

• CFO, Equilon Enterprises, LLC – largest downstream company in the United States

• Director, Caltex Petroleum Corporation

• MBA, Corporate Finance from NYU

Elizabeth P. Smith

Director

• Over 30 years experience in corporate compliance, investor relations, and law in the

energy industry

• Vice President-Investor Relations and Shareholder Services, Texaco Inc.

• Corporate Compliance Officer, Texaco Inc.

• Former member and past President of Investor Relations Association and the

Petroleum Investor Relations Institute

• JD from Georgetown University Law Center



COMPANY STRATEGY


• Acquire assets in prime locations

– March 2014 acquired ~14,000 net acres in Colorado’s Wattenberg and Wattenberg Extension from Continental Resources, increasing total leasehold in DJ Basin to ~18,300 net acres

• Selectively participate in non-operated wells of proven operators with strong track records in attractive areas of the basin

– Own non-operated interest in 16 gross wells (~2 net wells) with Bill Barrett, Bonanza Creek, Carrizo and Noble

• Optimize operated development of core acreage

– Reduce drilling & construction costs while increasing production results

– Operate 16 gross (6 net) operated wells in DJ Basin (drilled 5 of the 16)

– Undergoing completion of three operated HZ wells in Wattenberg Extension (Loomis pad)

• Hold acreage by production and/or opportunistically rationalize acreage position

• Commence full-scale operated development program focused on lowest cost, highest return assets

– Anticipate ~$30mm capital budget for FY’2015 focused on drilling Wattenberg and Wattenberg Extension locations



INVESTMENT HIGHLIGHTS


Significant Position in Low Cost, High Return Basin

• Nearly 85% of PED’s total U.S. leasehold in DJ Basin• DJ Basin break-even price of crude estimated to be $40-60 per

barrel WTI (min. of 15% return)• DJ Basin wells generate among highest IRRs in U.S. shale plays

Growth Potential • ~1,500 potential gross drilling locations, providing 20 years of drilling inventory

• 1P represents only 74% of 2P reserves and 41% of 3P reserves

Access to Infrastructure • >170k bbl/d of rail capacity by end of FY’2015• >1.1mm bbl/d of pipeline capacity by end of FY’2017• 100% of wells connected to gas sales• Negotiated preferential access to salt water disposal well near

current drilling location

Experienced Management with Proven Track Record

• Led by President and CEO Frank C. Ingriselli, previous President of Texaco International Operations and Founder of CAMAC Energy. Over 35 years of industry experience

• Technical and operating team with prior experience with Shell, Chevron, Exxon, Rosetta Resources and others. Collectively drilled more than 500 horizontal shale wells

Strategic Partnerships • MIE Holdings (HK: 1555) - one of the largest independent upstream oil companies in China

• Golden Globe – subsidiary of $1.3 bn resource fund



DJ BASIN AMONG LOWEST COST BASINS IN U.S.


Breakeven oil prices by basin

*Source: Bloomberg LP and Wells Fargo Securities, LLC Research October 2014



OIL-WEIGHTED BASIN WITH HIGH IRRs


Basin Product & IRR Comparison

*Source: Credit Suisse



RIG COUNT GROWTH EXCEEDS OTHER SHALE PLAYS


*Source: Baker Hughes

860

880

900

920

940

960

980

1,000

1,020

1,040

1,060

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%

Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14

Tota

l Nu

mb

er o

f R

igs

Ind

exed

Co

mp

ari

son

of

Rig

Co

un

t G

row

th b

y B

asi

n

Rig Count Comparison

Total Rig Count DJ Eagle Permian Williston

60+ rigs in the DJ Basin; 52 rigs

located in Weld County where

PEDEVCO leases acreage



WATTENBERG CORE AND EXTENSION

Copyright (c) 2014 PEDEVCO Corp. 14 = Indicates PED leasehold

• PED acreage and surrounding areas have undergone rapid exploration and development activities from majors such as Bill Barrett, Bonanza Creek, Carrizo, Noble Energy, PDC, Synergy Resources and Whiting

Operator

EUR

(Mboe)(1)

IRR @

WTI ($ /

bbl)

Well Cost

($mm)

Bonanza

Creek313

40% @

$80 WTI$4.2

Carrizo 25331% @

$81 WTI$3.6

Noble 305 87% @ n/a $4.3

PDC 285-50046%-125%

@ $90 WTI$4.2

Synergy 225-375 n/a $4.0

Whiting 42042% @

$70 WTI$5.5

PED

Estimate235-376

30%-80%

@ $80 WTI$4.2

Source: Company Investor Presentations(1) Assume short lateral (~4,000 ft)



SIGNIFICANT GROWTH IN RESERVES & REVENUE


523

5,617

0

1,000

2,000

3,000

4,000

5,000

6,000

End of 2013 Current

MB

OE

1P RESERVES

1,441

13,546

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

End of 2013 Current

MB

OE

3P RESERVES

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

YTD 2013 YTD 2014

THO

USA

ND

S

REVENUE

7X

* Estimated by Company(1) As of mid-year reserve report (Q2 2014)

(2) As of quarter ended September 30

*

(1)

(1)

(2) (2)



3941,060

5,224

6,520

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1P 2P

BO

E -

Tho

usa

nd

s

Developed Producing Undeveloped


DEVELOPMENT POTENTIAL IN DJ BASIN

* Based on 40 & 80 acre spacing

DJ Basin

Net Acres 18,300

Gross Drilling locations 1,468*

Net Drilling Locations 256

YTD # Producing wells 47 + 3 (Loomis wells)

drilled in November

Note: Reserves and NPV include Red Hawk Petroleum, PEDCO Direct and 20% Condor assets

$12.8

$39.0

$40.9

$56.0

0

10

20

30

40

50

60

70

80

90

100

1P 2P

$ -

Mill

ion

s

Developed Producing Undeveloped

Niobrara B: Net Oil Reserves (Mboe) Niobrara B: Net Present Value ($mm)

• 1P Reserves – Over 92% PUD reserves offering significant development potential

• 2P Reserves − Potential 76% increase in economic value (1P vs. 2P)

• 3P Reserves − Estimated value of $152mm

• IMPORTANT: Economics below exclude potential value of Niobrara A & C, Codell and Greenhorn Stacked Pay Zones

PDP – Proved Developed ProducingPUD – Proved Undeveloped

5,617

7,580

$53.7

$95.0



DOWNSPACING POTENTIAL OF DJ BASIN


Downspacing (more wells per section) and stacked pay (multiple zones) offers potential

increase in recovery factors on the DJ Basin play

Recovery Factors

Down-Spacing

Stacked Pay Zones

Success of down-

spacing proven

by Noble Energy

on Wattenberg

*Source: Credit Suisse Research October 2013 – Shale Revolution II



https://doc.research-and-analytics.csfb.com/docView?language=ENG&source=emfromsendlink&format=PDF&document_id=1023125461&extdocid=1023125461_1_eng_pdf&serialid=9EIFh5wGMbrXUOFyyhvTsJLi/xb2aKN9Saj95oKCxko%3d

ANNOUNCED DOWNSPACING PROGRAMS


Bill Barrett • Currently evaluating four downspacing pilots (two in Niobrara B Bench and two in C Bench; Codell testing will follow)

• Potentially 24 wells per section (1,280 acres)• Located in 4N62W, 5N62W and 5N61W

Bonanza Creek • Reducing 28-stage completion to 140’ from 220’ in order to accommodate downspacing

Carrizo • Testing down to 40 acre spacing in Niobrara (implies 16 wells per section)

Noble • Minimum of 16 wells per section• Testing up to 24-32 wells per section (30-40% of 2014 program);

initial results encouraging with no observable production interference at various lateral lengths and intervals

PDC • Testing 20 wells per section in inner and middle core of Wattenberg

• Testing downspacing in Codell formation

Whiting • Testing 16-32 wells per section in Niobrara A, B and C Zones

Source: Company Investor Presentations

PED’s neighboring operators are testing downspacing potential of DJ Basin with success



PED’S PRIME LOCATION DELIVERS RESULTS


• Prime location at the heart of Wattenberg, Wattenberg Extension & Colorado Mineral Belt, where existing operators have proven success

• Neighbors include Bill Barrett, Bonanza Creek, Carrizo, Noble Energy, PDC, Synergy Resources and Whiting

• Proven success as one of the most efficient, low-cost operators that delivers results (All 5 producing wells drilled with > 400 IP rate)

0

100

200

300

400

500

600

700

2012 2013 2014

Bo

e/d

PED Bonanza Creek

Avg. IP Rate

1 well

4 wells3 wells

IP rates of most recent wells drilled

by PED outperformed those

of neighboring operators



3 WELL PAD DRILLING PROGRAM IN DJ BASIN


• 3-well-pad program

• First wells drilled by PED since acquiring leaseholds from Continental in March 2014

• First well spud Aug 18th

• Approx. 11 days to drill each well

• Drilling completed on October 7th

• Completion began on November 20th

• Wells in area:

– Pergamos Well

• 327 BBL/D over

60 days

– Hemberger

• 463 BBL/D over

60 days

– 1 section away from

Carrizo downspacing

program



INFRASTRUCTURE ACCESS


Source: Bonanza Creek November 2014 Investor Presentation



Date October 2014 May 2014

Transaction Value ($mm) 125 226

Production (boe/d) 1,240 700

$ per bbl/d $60,000 $80,000

PDP Value ($mm) 74 56

Adjusted Transaction Value ($mm) 51 170

Net Acres 5,792 34,600

$ per Adjusted Net Acre $8,805 $4,913

RECENT TRANSACTIONS IN DJ BASIN


• Recent and relevant transactions around PED’s acreage in the DJ Basin substantiate PED’s valuation

• Based upon a variety of transaction metrics for production and acreage, PED’s assets could be worth $101 million to $176 million 1 well

4 wells

3 wells

High Low

Net Acres Value

(18,300 net acres)

$161 mm $90 mm

Production Value

(185 boe/d)

$15 mm $11 mm

Total $176 mm $101 mm



UPSIDE - INTERNATIONAL ASSET KAZAKHSTAN • PED is in contract to acquire 5% equity interest in Caspian Energy Inc., which owns 100%

interest in 380,000 acres in the “North Block” located in the Caspian Basin.

• Caspian Basin is estimated to have the second largest reserves and production in the

world.

• North Block is surrounded by major oil companies’ assets, which could contain reserves

estimated to be greater than oil reserves of the entire United States.




CONCLUSION


• PED is uniquely positioned to develop its leasehold in the DJ Basin, one of the fastest growing, lowest cost shale plays in the U.S.

• Well economics are unmatched elsewhere in the U.S., which are supported by rig count growth in the region

• Near-term growth drivers include:

– Down-spacing (80 to 40 acre spacing, implying 8 to 16 wells per section)

– Stacked pay zones (Additional four zones not currently being developed, e.g. Niobrara A, C, Codell, Greenhorn)

– Improved drilling and completion techniques to increase well performance and reduce costs

Opportunity to invest in early stage, high growth oil and gas company with experienced management and operational expertise



CONTACT INFORMATION

CORPORATE HEADQUARTERS

4125 Blackhawk Plaza Circle, Suite 201Danville, CA 94506

Tel: 855-PEDEVCO / [email protected]

Corporate website:www.PacificEnergyDevelopment.com

Investor Relations Contacts:

Stonegate [email protected]

214-987-4121




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