PEDEVCO Corp. d/b/a Pacific Energy Development announced the entry into an Agreement and Plan of Reorganization with Dome Energy AB whereby the Company will acquire all the US oil and gas assets of Dome.
This transformational business combination with Dome Energy is expected to:
•Pay off existing senior debt of the Company
•Lower cost of capital with a 3.75% bank credit facility
•Provide drilling capital
•Provide additional capital to buy back Company stock
•Provide an estimated PV10 of 1P reserves of approximately $280 million
•Increase production to an estimated 3,300 BOE/D at closing
'We are in an unprecedented time in the energy sector with crude prices falling over 50% since the summer of 2014,' stated Mr. Frank C. Ingriselli, Chairman and Chief Executive Officer of the Company. 'Unlike many companies, even with oil at its current price per barrel, we have ample quality drilling inventory that we can develop with estimated IRR's exceeding 40%. This acquisition of the Dome Energy assets is a great opportunity, at the right time, to grow and strengthen our position as a company. We have laid the groundwork for access to additional cash flow, production and reserves,' continued Mr. Ingriselli.