Pursuant to the participation agreement, PEDEVCO acquired a 27.9% working interest in six new horizontal D-J Basin wells in the SW Pony Prospect that were drilled and completed in the third quarter. (Source: Shutterstock)
Independent producer PEDEVCO Corp. agreed to jointly develop approximately 10,750 net acres in the SW Pony Prospect in Weld County, Colorado.
Houston-based PEDEVCO signed a five-year participation agreement “with a large, Denver, Colorado-based private equity-backed D-J Basin E&P company with extensive operational experience,” PEDEVCO said Oct. 1.
PEDEVCO and the unnamed operator have formed a roughly 16,900-acre area of mutual interest in the SW Pony Prospect, with PEDEVCO holding a 30% interest and the operator holding a 70% interest in the combined acreage.
The two parties are contemplating drilling and completing a minimum of five horizontal Niobrara wells per year over the next five years on the joint acreage.
Pursuant to the participation agreement, PEDEVCO acquired a 27.9% working interest in six new horizontal D-J Basin wells in the SW Pony Prospect that were drilled and completed in the third quarter.
The additional working interest “will add an immediate and significant production uplift” to PEDEVCO’s third-quarter results.
The area of mutual interest covers approximately 16% of PEDEVCO’s D-J Basin acreage, but does not include any acreage where the company has existing permits for its anticipated future operated development.
“We are very pleased to announce this participation agreement with one of the top operators in the D-J Basin which has consistently delivered superior well results over the last decade,” said PEDEVCO President J. Douglas Schick. “Our similar acreage footprints in the SW Pony Prospect make this collaboration a natural fit and will allow both companies to accelerate development and increase production from this highly-prospective area.”
In addition to the D-J Basin of Colorado and Wyoming, PEDEVCO has assets in the Northwest Shelf of New Mexico targeting the San Andres play.
RELATED
Recommended Reading
Chevron’s Gulf of Mexico Anchor Project Begins Production
2024-08-12 - Chevron and TotalEnergies’ $5.7 billion floating production unit has a gross capacity of 75,000 bbl/d and 28 MMcf/d.
E&P Highlights: Sept. 16, 2024
2024-09-16 - Here’s a roundup of the latest E&P headlines, with an update on Hurricane Francine and a major contract between Saipem and QatarEnergy.
How Chevron’s Anchor Took on the ‘Elephant’ in the GoM’s Deepwater
2024-08-22 - First oil at Chevron's deepwater Anchor project is a major technological milestone in a wider industry effort to tap giant, ultra-high-pressure, high-temperature reservoirs in the Gulf of Mexico.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.
IOCs See Opportunity in Offshore Mexico, Despite Potential for Policy Changes
2024-08-14 - Five IOCs with offshore experience and capital—Eni, Harbour, Talos, Wintershall Dea and Woodside—continue to pursue promising opportunities offshore Mexico despite the country’s energy sovereignty push in favor of state-owned entities Pemex and CFE.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.