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
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
Copyright (c) 2014 PEDEVCO Corp. 6
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
Copyright (c) 2014 PEDEVCO Corp. 7
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
• BS Petroleum Engineering from the University of Texas at Austin; licensed petroleum engineer in Texas
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
• BS Petroleum Engineering from the University of Texas at Austin; licensed petroleum engineer in Texas
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
Copyright (c) 2014 PEDEVCO Corp. 8
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
9 Copyright (c) 2014 PEDEVCO Corp.
• 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
10 Copyright (c) 2014 PEDEVCO Corp.
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 $1.3 bn resource fund
DJ BASIN AMONG LOWEST COST BASINS IN U.S.
11 Copyright (c) 2014 PEDEVCO Corp.
Breakeven oil prices by basin
*Source: Bloomberg LP and Wells Fargo Securities, LLC Research October 2014
OIL-WEIGHTED BASIN WITH HIGH IRRs
12 Copyright (c) 2014 PEDEVCO Corp.
Basin Product & IRR Comparison
*Source: Credit Suisse
RIG COUNT GROWTH EXCEEDS OTHER SHALE PLAYS
13 Copyright (c) 2014 PEDEVCO Corp.
*Source: Baker Hughes
860
880
900
920
940
960
980
1,000
1,020
1,040
1,060
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
130%
Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14
Tota
l Nu
mb
er o
f R
igs
Ind
exed
Co
mp
ari
son
of
Rig
Co
un
t G
row
th b
y B
asi
n
Rig Count Comparison
Total Rig Count DJ Eagle Permian Williston
60+ rigs in the DJ Basin; 52 rigs
located in Weld County where
PEDEVCO leases acreage
WATTENBERG CORE AND EXTENSION
Copyright (c) 2014 PEDEVCO Corp. 14 = Indicates PED leasehold
• PED acreage and surrounding areas have undergone rapid exploration and development activities from majors such as Bill Barrett, Bonanza Creek, Carrizo, Noble Energy, PDC, Synergy Resources and Whiting
Operator
EUR
(Mboe)(1)
IRR @
WTI ($ /
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
Copyright (c) 2014 PEDEVCO Corp. 15
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
Copyright (c) 2014 PEDEVCO Corp. 16
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
Copyright (c) 2014 PEDEVCO Corp. 17
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
ANNOUNCED DOWNSPACING PROGRAMS
Copyright (c) 2014 PEDEVCO Corp. 18
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
Copyright (c) 2014 PEDEVCO Corp. 19
• 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
Copyright (c) 2014 PEDEVCO Corp. 20
• 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
21 Copyright (c) 2014 PEDEVCO Corp.
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
Copyright (c) 2014 PEDEVCO Corp. 22
• 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.
Copyright (c) 2014 PEDEVCO Corp. 23
CONCLUSION
24 Copyright (c) 2014 PEDEVCO Corp.
• 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
Copyright (c) 2014 PEDEVCO Corp. 25