J. Douglas Schick, Speaking with CEOCFO Magazine Explains their Focus on Conventional Oil and Gas Opportunities
HOUSTON, TX / ACCESSWIRE / October 23, 2019 / CEOCFO Magazine, an independent investment, business and resources news publication highlights the rebranding of PEDEVCO Corp. (NYSE American:PED) in an interview (https://www.ceocfointerviews.com/interviews/PEDEVCO19.htm) with J. Douglas Schick, President of PEDEVCO. The company, which formally did business as Pacific Energy Development, was originally headquartered in California with its primary asset in Colorado. However, in June of 2018, a new majority investor and new management team bought control of the company and moved the headquarters to Houston, Texas. Mr. Schick goes on to say, "At this point we changed our focus to acquiring assets in the Permian Basin rather than in Colorado, so the name Pacific Energy Development did not necessarily fit with our strategy, location or what we were doing."
Discussing their current assets, Mr. Schick states, "We have over 150 drilling locations in two of our Permian fields and potentially another 50 or more in another Permian field, plus another 100 or more drilling locations in Colorado. We have a very large inventory of high rate of return projects, zero debt and strong capital backing."
As to why PEDEVCO is bucking the current trend for oil and gas companies to gravitate towards shale, Mr. Schick commented, "We believe it is easier to build a profitable business long term in conventional oil and gas opportunities rather than unconventional shales."
Having recently raised $25 million through a private offering, Mr. Schick tells us "Those funds will be used for three different purposes. The first is to finish our 2019 development program where we are currently in the process of completing five wells that we drilled earlier in the year. The second use of funds is for our 2020 development program. The third use will be for opportunistic acquisition of producing assets and business combinations."
Sharing his thoughts on why PEDEVCO has been successful in raising capital, Mr. Schick tells us, "PEDEVCO is a little bit of an anomaly because we have been able to raise money over the past few years and get a few deals done. We not only have a highly experienced business development team, but we also have the financial support of one very good investor, SK Energy, that has been willing to do multiple equity investments in us to fund our acquisition, development and expansion plans."
With a business plan that includes using unconventional technology for conventional development, Mr. Schick points out, "The whole unconventional oil and gas sector is based on horizontal drilling technology and new frack completion technologies. All we are doing is taking those technologies from the unconventional space and using them in the conventional space to access oil and gas reserves from old existing fields that were not recovered using previous technology."
In conclusion, Mr. Schick tells CEOCFO, "If you want to invest in the sector, you want to look for a company with a sustainable business model, quality assets that are going to be able to generate good cash flow long into the future, strong capital support, and no debt. PEDEVCO is that company."
SOURCE: CEOCFO Magazine