PEDEVCO CORP. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by PEDEVCO Corp. on June 18, 2014. The filing discloses material non-public information regarding the Company's oil and gas operations in the Wattenberg Asset located in Weld County, Colorado.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. However, it discloses the following project-specific financial data:
- Drilling Cost: Approximately $4.2 million per well.
- Net Working Interest: Approximately 45% per well.
- Funding Source: Cash on hand and an established drilling credit line.
Material Changes and Operational Updates
The Company received approval from the Oil and Gas Conservation Commission of the State of Colorado (COGCC) to drill up to 79 new horizontal wells. These wells comprise 7 spacing units covering approximately 6,700 gross acres. The Company plans to commence initial drilling operations in mid-August 2014, starting with 3 horizontal wells from a single pad. Each well will receive an 18-stage enhanced frac treatment with lateral lengths between 4,000 and 4,500 feet.
Outlook and Management Commentary
Completion and initial results for the first three wells are expected to be available in mid-October 2014. Management intends to utilize existing cash reserves and credit facilities to fund these initial drilling activities.
Investor Verification Checklist
- Verify the status of the COGCC approval for the 79 proposed wells.
- Confirm the availability of cash on hand and the terms of the established drilling credit line.
- Monitor the commencement of drilling operations scheduled for mid-August 2014.
- Review the initial production results expected in mid-October 2014 to validate the $4.2 million cost estimate and 45% net working interest.