PEDEVCO CORP. Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed on February 12, 2013, covering events occurring on February 8, 2013, and February 12, 2013. PEDEVCO CORP. is an energy exploration and production company incorporated in Texas. The filing addresses the termination of a material definitive agreement regarding asset acquisition and the commencement of production from a new well.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or debt metrics. Specific financial figures disclosed relate to a terminated transaction:
- Terminated Agreement Purchase Price: $8,648,661 (aggregate).
- Initial Deposit Paid: $864,866 (held in escrow).
- Production Rate: 588 barrels of oil equivalent per day (Waves 1H well).
Material Changes
Termination of Mississippian Lime Agreement: On February 8, 2013, PEDEVCO's joint venture, Condor Energy Technology LLC, mutually terminated the "Original Mississippian Agreement" with Berexco LLC. The agreement involved the acquisition of interests in the Mississippian Lime covering approximately 13,806 gross acres in Kansas and Oklahoma, plus 3-D seismic data. The termination was without fault of either party.
Proposed Direct Transaction: PEDEVCO and Berexco agreed to negotiate in good faith a new transaction ("Proposed PEDEVCO-Berexco Transaction") whereby PEDEVCO would acquire the same lease interests directly. The $864,866 deposit remains in escrow pending a new agreement by February 22, 2013. If no agreement is reached by that date, funds will be returned to PEDEVCO.
Operational Milestone: On February 12, 2013, the company announced the completion and initial production of the Waves 1H well in the Niobrara formation (Weld County, Colorado) at a rate of 588 barrels of oil equivalent per day.
Outlook, Risks, and Contingencies
Transaction Uncertainty: Management explicitly states there is no assurance that a revised agreement with Berexco will be entered into or that the contemplated acquisitions will be consummated.
Escrow Deadline: The $864,866 deposit is contingent on the execution of a new escrow agreement or definitive documentation by 5:00 p.m. Central Time on February 22, 2013. Failure to meet this deadline results in the return of funds to the Company.
Investor Verification Checklist
- Verify the status of negotiations for the "Proposed PEDEVCO-Berexco Transaction" by the February 22, 2013 deadline.
- Confirm whether the $864,866 deposit was returned or re-escrowed for a new agreement.
- Monitor subsequent production reports for the Waves 1H well to assess sustained output rates.
- Review the press release filed as Exhibit 99.1 for additional operational details.