PEDEVCO Announces Transformative Year-End 2025 Proved Reserves After Major Merger
PEDEVCO Reports Substantial Year-End 2025 Proved Reserves, Signaling Strong Post-Merger Growth Potential
Key Highlights from the Report
- Total Proved Reserves: 32.1 million barrels of oil equivalent (MMBoe)
- PV-10 Value: \$357.7 million at SEC pricing as of December 31, 2025
- Asset Base: Reserves reflect the full portfolio post-completion of a transformative merger with Juniper Capital Advisors, L.P. portfolio companies
- Proved Developed vs. Undeveloped: 16.38 MMBoe proved developed; 15.74 MMBoe proved undeveloped
- Drilling Inventory: 71 horizontal drilling locations and 11 proved developed non-producing wells
- Reserve Report: Prepared by Cawley, Gillespie & Associates, Inc., an independent petroleum engineering firm
- SEC Pricing: \$65.34/barrel for oil, \$3.387/MMBtu for natural gas, with realized prices of \$62.92/barrel for oil, \$3.04/Mcf for natural gas, \$25.77/barrel for NGLs
- Future Net Cash Flows: Estimated at \$674.8 million (pre-tax), with \$357.7 million PV-10 value, of which \$257.4 million (72%) is attributable to proved developed reserves
Detailed Analysis
PEDEVCO Corp. (NYSE American: PED) has released its independent year-end 2025 proved reserves evaluation, underscoring a significant shift in the company’s scale following a major merger with certain Juniper Capital Advisors, L.P. portfolio companies. This transformative transaction has dramatically expanded PEDEVCO’s asset base, now encompassing properties in Wyoming, Colorado, and New Mexico.
The company’s total proved reserves as of December 31, 2025, stand at 32.12 MMBoe, broken down into:
- 22.99 million barrels (MMBbl) of oil
- 28.78 billion cubic feet (Bcf) of natural gas
- 4.34 MMBbl of natural gas liquids (NGLs)
Of particular note for investors, the reserves are split between 16.38 MMBoe of proved developed reserves and 15.74 MMBoe of proved undeveloped reserves. This significant undeveloped resource base highlights a multi-year runway for growth and value creation.
The reserve evaluation was prepared using SEC guidelines and constant pricing, with realized prices adjusted for differentials and quality. The report was compiled by Cawley, Gillespie & Associates, Inc., lending independent credibility to the figures.
Future Development and Drilling Inventory
- 71 horizontal drilling locations are included in the proved undeveloped reserves, specifically:
- 49 in Colorado targeting the Niobrara formation
- 17 in Wyoming targeting the Codell formation
- 5 in New Mexico targeting the San Andres formation
- 11 proved developed non-producing wells (10 in Colorado, 1 in Wyoming) with capital costs already paid, providing a ready-to-activate production boost
Financial Implications
- PV-10 (pre-tax present value discounted at 10%) of proved reserves: \$357.7 million
- Estimated future net cash flows (pre-tax): \$674.8 million
- Proved developed reserves contribute 72% of PV-10 value – indicating a substantial portion of value is in producing or near-producing assets
PV-10 is a widely used measure in the oil and gas industry, enabling investors to compare pre-tax discounted value across companies regardless of tax situation. However, it does not represent market value and is not a substitute for standardized GAAP measures.
Strategic and Shareholder-Relevant Takeaways
- Post-Merger Asset Base: This report provides the first full look at PEDEVCO’s expanded reserves post-merger, setting a new authoritative baseline for the company and superseding all previous estimates.
- Growth Platform: The large inventory of undeveloped drilling locations and recently acquired assets offers a clear path for long-term production growth and value creation.
- Cash Flow Potential: The substantial reserves and high percentage of proved developed reserves position PEDEVCO for consistent cash flow generation.
- Merger Synergies and Risks: The company faces integration risks related to merging assets and personnel, as well as servicing any assumed debt and realizing expected benefits. Shareholders should monitor updates on merger integration and operational execution.
- Share Dilution Risk: The merger involved issuing convertible preferred shares, which may result in dilution if converted.
- Potential Price Sensitivities:
- This sharp increase in reserves and value could positively impact share price, especially as the market digests the full impact of the merger and new drilling inventory.
- Risks remain, including commodity price volatility, regulatory changes, and integration execution. The company specifically flags a range of risks from geopolitical events to supply chain constraints and capital needs.
Company Overview
PEDEVCO Corp. is a publicly traded energy company focused on acquiring and developing high-growth oil and gas projects in the United States. Its main assets include the D-J Basin of Wyoming and Northern Colorado, the Powder River Basin in Wyoming, and the Permian Basin in eastern New Mexico. The company is headquartered in Houston, Texas.
Contact Information
Disclaimer
This article is for informational purposes only and does not constitute an offer to buy or sell securities. All forward-looking statements are subject to numerous risks and uncertainties, including commodity price volatility, regulatory changes, integration of merger assets, and other factors discussed in PEDEVCO’s public filings. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information provided herein reflects public disclosures as of February 25, 2026, and is subject to change without notice.
View PEDEVCO CORP Historical chart here
