PEDEVCO CORP. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by PEDEVCO Corp. on February 4, 2019, covering events occurring on February 1, 2019. The filing details the completion of an asset acquisition in the oil and gas sector.
Key Financial Metrics and Transaction Details
The Company, through its wholly-owned subsidiary Pacific Energy Development Corp. (PEDCO), acquired specific oil and gas assets for an aggregate purchase price of $700,000. The filing does not provide broader financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
- Transaction Value: $700,000 (subject to post-closing adjustments).
- Assets Acquired: Approximately 22,000 leasehold acres in the San Andres play, Permian Basin (eastern New Mexico).
- Production Profile: 1 horizontal well (currently producing), 3 shut-in wells, and 1 saltwater disposal well.
Material Changes
The primary material change is the expansion of the Company's asset base in the Permian Basin. The newly acquired assets are contiguous with 23,000 net leasehold acres previously acquired by the Company in September 2018. The purchase price is subject to adjustments based on post-effective date expenditures, hydrocarbon sales proceeds, third-party production proceeds held in suspense, and the value of hydrocarbons in tanks at the time of the transaction.
Outlook, Risks, and Contingencies
The filing references customary representations, warranties, and indemnification requirements within the Purchase Agreement. The Seller is obligated to cooperate with PEDCO and provide financial statements required for SEC filings and tax reporting. No specific forward-looking guidance, risk factors, or unusual items beyond the standard transaction contingencies are detailed in this specific report.
Investor Verification Checklist
- Verify the final adjusted purchase price after post-closing calculations regarding expenditures and hydrocarbon proceeds.
- Confirm the operational status and production rates of the single horizontal well and the potential for bringing the 3 shut-in wells online.
- Review the full Purchase and Sale Agreement (Exhibit 2.1) for specific indemnification terms and representations.
- Assess the integration of these 22,000 acres with the existing 23,000 acres to evaluate operational synergies.