Company: PED
Filing Date: 2025-10-29
Form Type: 10-K/A
Source: 0001654954-25-012328
Chunk: 72

Company: PEDEVCO CORP
Filing Date: 2025-10-29
Form: 10-K/A
Chunk 72
---
 and the current armed conflict in Israel and the Gaza Strip, which conflicts are ongoing; |
| · | the continued threat of terrorism and the impact of military action and civil unrest;                                                                                                                                                                                                                                                               |
| · | public pressure on, and legislative and regulatory interest within, federal, state and local governments to stop, significantly limit or regulate hydraulic fracturing activities;                                                                                                                                                                  |
| · | the level of global oil, NGL and natural gas inventories and exploration and production activity;                                                                                                                                                                                                                                                   |
| · | authorization of exports from the Unites States of liquefied natural gas;                                                                                                                                                                                                                                                                           |
| · | the impact of energy conservation efforts;                                                                                                                                                                                                                                                                                                          |
| · | technological advances affecting energy consumption; and                                                                                                                                                                                                                                                                                            |
| · | overall worldwide economic conditions.                                                                                                                                                                                                                                                                                                              |

Declines in oil, NGL or natural gas prices have not, and will not, only reduce our revenue, but have and will reduce the amount of oil, NGL and natural gas that we can produce economically. Should natural gas, NGL or oil prices decline from current levels and remain there for an extended period of time, we may choose to shut-in our operated wells, (similar to our shut-in of our operated wells in 2020 in response to the COVID-19 pandemic), delay some or all of our exploration and development plans for our prospects, or to cease exploration or development activities on certain prospects due to the anticipated unfavorable economics from such activities, and, as a result, we may have to make substantial downward adjustments to our estimated proved reserves, each of which would have a material adverse effect on our business, financial condition and results of operations.

We have in the past incurred impairments and future conditions might require us to incur additional impairments or make write-downs in our assets, which would adversely affect our balance sheet and results of operations.

We review our long-lived tangible and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. For example, for the year ended December 31, 2020, due to falling oil and gas prices, we incurred a $19.3 million impairment of our oil and gas properties. No impairment was incurred for the years ended December 31, 2024 and 2023. In the past we have been required to impair our assets and, if conditions in any of the businesses in which we compete were to deteriorate in the future, we could determine that certain of our assets were impaired and we