DANVILLE, CA--(Marketwired - November 17, 2014) - PEDEVCO Corp. d/b/a Pacific Energy Development (NYSE MKT: PED) (the "Company"), an energy company engaged in the acquisition and development of strategic, high-growth energy projects, today provided an update on the Company's pending acquisition of a 5% interest in Caspian Energy Inc. ("Caspian Energy"), a Canadian publicly-traded company which is in the process of acquiring a 100% working interest in production and exploration licenses covering an approximate 380,000 acre oil and gas producing asset located in the Pre-Caspian Basin in Kazakhstan (the "Caspian Transaction"). As previously announced by Pacific Energy Development, the Company has no further funding obligation for the future development of the Kazakhstan asset.
This Kazakhstan asset is located in the North Block of the Pre-Caspian Basin, one of the largest producing basins in Kazakhstan, and is covered by an exploration license issued by the Republic of Kazakhstan, held by Caspian Energy's Kazakhstan subsidiary, Aral Petroleum. Aral Petroleum currently has one producing oilfield in this asset, the East Zhagabulak (EZ) oilfield, which recently entered the commercial production stage with a 20 year production license expiring in 2034. Aral Petroleum also has several oil prospects in the asset that are currently in the exploration stage.
According to public regulatory filings made by Caspian Energy on November 14, 2014, Caspian Energy has scheduled a special meeting of its shareholders on December 12, 2014 to approve the Caspian Transaction.
As publicly disclosed by Caspian Energy:
Upon closing the Caspian Transaction, Frank C. Ingriselli, the Chairman and Chief Executive Officer of the Company, will join the Board of Directors of Caspian Energy to serve as an independent director and as a member of Caspian Energy's Audit Committee.
Aral Petroleum has successfully obtained a renewed gas flaring and emission permit for the East Zhagabulak oilfield. The permit will allow the three previously producing wells to re-commence their commercial production, which wells Aral Petroleum voluntarily shut-in at the end of 2013 pending renewal of this permit. Prior to their voluntary shut-in, these three wells, EZ #301, EZ #306 and EZ #315, were producing just under 1,300 bopd, with Caspian Energy expecting similar production rates when production is recommenced in October 2014.
Aral Petroleum has obtained an additional 4-year extension on the Exploration Contract for the area outside of the East Zhagabulak oilfield (which oilfield has a 20 year production license expiring in 2034). With this extension approval obtained, Aral Petroleum is now in the process of considering additional geological exploration activities in the area.
The Pre-Caspian Basin is considered the fifth largest oil basin in the world and the North Block is one of the largest producing basins in Kazakhstan, with its neighbors including some of the largest oil fields in the world. Two of those neighboring fields are estimated to contain reserves as large as the total oil reserves in the United States.
Mr. Frank Ingriselli, Pacific Energy Development's Chairman and Chief Executive Officer, commented: "We are very pleased with these new developments regarding the Kazakhstan asset, and are encouraged by the resumption of commercial production from the EZ Oilfield and the new prospects in addition to this producing oilfield. We look forward to the closing of our acquisition of 5% of Caspian Energy and my appointment to their Board of Directors, which Board position we believe will allow Pacific Energy Development to have a meaningful impact on the continued development and commercialization of the Kazakhstan asset, while providing valuable oversight of our investment."
Third Quarter Results Conference Call
The Company will be hosting a conference call today at 1:30 PM Pacific Time / 4:30 PM Eastern Time to discuss the third quarter earnings results and provide an operational update.
Date: Today - November 17, 2014 (Monday)
Time: 1:30 PM PT / 4:30 PM ET
Dial-in: 877-407-6914 (toll free) or 201-493-6709 (international)
Webcast: Available via Company's website at www.pacificenergydevelopment.com
The call will be archived on the Company's website under the Investors page shortly following the call for approximately 90 days.
About Pacific Energy Development (PEDEVCO Corp.)
PEDEVCO Corp, d/b/a Pacific Energy Development (NYSE MKT: PED), is a publicly-traded energy company engaged in the acquisition and development of strategic, high growth energy projects, including shale oil and gas assets, in the United States. The Company's principal assets include its D-J Basin asset located in Weld and Morgan Counties, Colorado, and its Mississippian asset located in Comanche, Harper, Barber and Kiowa Counties, Kansas. The Company has also previously announced its entry into an agreement to acquire a 5% interest in an entity which will hold a 380,000 acre producing asset located in the Pre-Caspian Basin, one of the largest producing basins in Kazakhstan. Pacific Energy Development is headquartered in Danville, California, with an operations office in Houston, Texas.
All statements in this press release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The Company operates in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statements. Readers are also urged to carefully review and consider the other various disclosures in the Company's public filings with the SEC.