Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 923

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 923
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 We Conduct Our Business and Evaluate Our Operations

Our use of capital for acquisitions and development allows us to direct our capital resources to what we believe to be the most attractive opportunities as market conditions evolve. We have historically acquired properties that we believe have significant appreciation potential. We intend to continue to acquire both operated and non-operated properties to the extent we believe they meet our return objectives.

We will use a variety of financial and operational metrics to assess the performance of our oil and natural gas operations, including:

 ·production volumes; ·realized prices on the sale of oil and natural gas; ·oil and natural gas production and operating expenses; ·capital expenditures; ·general and administrative expenses; ·net cash provided by operating activities; and ·net income.

Reserves

Our estimated net proved crude oil and natural gas reserves at December 31, 2024 and 2023 were approximately 18.1 million barrels of oil equivalent (“MMBoe”) and 17.0 MMBoe, respectively. The 1.1 MMBoe increase was primarily due to the addition of proved undeveloped reserves in our D-J Basin Asset as a result of increased activity around our acreage and favorable pricing.

Using the average monthly crude oil price of $75.48 per barrel (“Bbl”) and natural gas price of $2.13 per thousand cubic feet (“Mcf”) for the twelve months ended December 31, 2024, our estimated discounted future net cash flow (“PV-10”) for our proved reserves was approximately $178.9 million, of which approximately $104.3 million are proved undeveloped reserves. Total reserve value at December 31, 2024, represents a decrease of approximately $52.8 million or 23% from approximately $231.7 million a year earlier using the same SEC pricing and reserves methodology. The decrease is primarily attributable to commodity pricing, as the average SEC pricing for 2024, noted above, was lower than the 2023 average pricing of $78.22 per Bbl for crude oil and $2.64 per Mcf for natural gas.

The reserves as of December 31, 2024 were determined in accordance with standard industry practices and SEC regulations by the licensed independent petroleum engineering firm of Cawley, Gillespie & Associates, Inc. A large portion of the proved undeveloped crude oil reserves are associated with our D-J Basin Asset. Although these hydrocarbon quantities have been determined in accordance with industry