PEDEVCO, d/b/a Pacific Energy Development, has put together over 18.3k gross acres of prime, high-value hydrocarbon energy territory across a domestic portfolio in three of North America’s top plays and the company even has a small-side deal focused on doing rare earths over in Inner Mongolia via a Hong Kong based partner.
The company’s primary focus is a newly acquired (March 28) asset in Kansas’s Mississippian Lime formation (Barber, Comanche, Harper, and Kiowa counties), some 7k gross acres in size. This impressive addition to the company’s portfolio nearly tripled their overall net acreage and as the operator, with a 97% WI, this newly acquired and highly strategic play marks a bold entry for the company into one of the most significant resources plays in America today. The company is intent on moving ahead with drilling as 2013 progresses on their Mississippian asset and with 3D seismic analysis in hand, everything looks on track for putting in a total of four planned wells in short order here.
The company’s Niobrara asset (DJ Basin, Weld and Morgan counties), consisting of just over 10.2k gross acres (27.13% WI) of territory in Colorado’s legendary oil play, where they are strategically partnered with Hong Kong oil firm (operations in both China and Kazakhstan), MIE Holdings Corporation, currently has three wells. The newest of the three wells is the Logan 2H (spudded Nov 2012), which is down 6.15k feet and runs for a 6.35k horizontal stretch, having been completed January of this year with 25 stages in the Niobrara “B” Bench, showing sollid initial production rates of around 585 boepd.
Next up is the Waves 1H (also spudded Nov 2012), which is down about 11.1k feet with a 4.34k-foot horizontal run completed in 18 stages this February (also into the “B” Bench), offering similarly positive IP rates of around 528 boepd. The final Niobrara well is the FFT2H, the oldest well on the site (spudded back in April 2012), a 11.3k foot deep sucker completed in 20 stages during July of last year, again targeting the Niobrara “B” Bench, and in this case having an IP of around 437 boepd.
The final site in the company’s domestic portfolio is the Eagle Ford shale asset (3.97% net WI, 8% owned by company subsidiary and MIE), a relatively small patch of around 1.33k acres in Texas’ Leighton Field (McMullen county), which has seen three wells sunk to date with IP rates in the range of 1k to 1.5k bopd and 700 to 11.1k mcfpd. The third well in the series at Eagle Ford, the Peeler EFS #1H, was put into production in late July of last year, with the first two, the Tyler Ranch EFS numbers 1H and 2H having been put into production in 2010 and 2011 respectively.
That rare earth position mentioned earlier, a 6% JV interest in Rare Earth Ovonic Metal Hydride JV Co. Ltd. (REO), shouldn’t be overlooked and speaks volumes alongside the company’s other operations about how aptly they have managed to secure footing with key mineral resource and hydrocarbon companies in China. This private firm REO has been producing mischmetal-based metal hydride powders for almost a decade now and Inner Mongolia is a rich and under-exploited region to be sourcing from.
For more information on Pacific Energy Development, visit www.PacificEnergyDevelopment.com
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