Evolution Petroleum, PEDEVCO enter strategic partnership

Evolution Petroleum Corporation (EPM) and PEDEVCO Corp. (PED) announced entry into a definitive participation agreement to jointly develop PEDEVCO’s Chaveroo oilfield in the Northwest Shelf of southeastern New Mexico, a conventional oil-bearing San Andres field in the Permian Basin located in Chaves and Roosevelt Counties. The Chaveroo field was originally developed with vertical wells on 40-acre spacing. PEDEVCO has drilled ten horizontal infill wells on ~20-acre spacing which yields most of the field’s current production. The agreement covers approximately 16,000 acres with average working interest and net revenue interest of 100% and 82%, respectively, all currently owned by PEDEVCO. Evolution will farm-in for an average 50% WI in future horizontal drilling locations on a block-by-block basis with PEDEVCO remaining the operator.