Company: PED
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001654954-25-005762
Chunk: 40

Company: PEDEVCO CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 9Table of Contents

For the three-month period ended March 31, 2025, the Company incurred $5,680,000 of capital costs primarily related to the Company’s completion operations with respect to four operated wells recently drilled and currently being completed with a third-party in the Permian Basin. Additionally, for the three-month period ended March 31, 2025, the Company recorded an impairment of oil and gas properties of $232,000 related to undeveloped leases representing 232 net acres in the D-J Basin that it allowed to expire or currently have no plans to drill prior to expiration. In February 2025, the Company entered into a joint development agreement with a private equity-backed D-J Basin E&P Company (“Operator”), pursuant to which the parties agreed to jointly participate in the expansion and development of the Company’s Roth and Amber drilling and spacing units (DSUs) located in Weld County, Colorado, with the Operator paying to the Company $1.7 million, the Company agreeing to amend the Company’s existing Roth and Amber DSUs to increase each to 1,600 acres and transferring operatorship of the DSUs to the Operator, and the parties agreeing to jointly participate in the development of the Roth and Amber DSUs.   In February 2025, the Company recognized $0.3 million in disposition expense related to the sale of certain capitalized equipment to a third-party in the D-J Basin. During the three months ended March 31, 2025, the Company acquired approximately 135 net lease acres, in and around its existing footprint in the D-J Basin, through multiple transactions with total acquisition costs of $65,000. The depletion recorded for production on proved properties for the three months ended March 31, 2025 and 2024 amounted to $3,040,000 and $3,165,000, respectively.

NOTE 7 – NOTE RECEIVABLE On November 9, 2023, in accordance with the sale of our wholly-owned subsidiary EOR Operating Company (“EOR”) to Tilloo Exploration and Production LLC (“Tilloo”), the Company entered into a five-year secured promissory note (the “Note”) with Tilloo, bearing interest at 10% per annum, with no payments due until January 8, 2025, and fully-amortized payments due monthly over the remaining four years of the term thereafter until maturity. The Note contains customary events of default and is secured by