PEDEVCO Completes Transformative Merger to Establish Rockies-Focused Energy Powerhouse

PEDEVCO Corp. has completed a transformative merger with portfolio companies controlled by Juniper Capital Advisors, fundamentally reshaping the company into a premier Rockies-focused energy operator. The transaction involved PEDEVCO issuing 10,650,000 shares of Series A Convertible Preferred stock to Juniper, convertible into 106,500,000 shares of common stock, while simultaneously refinancing the portfolio companies' existing debt and preferred equity. This strategic move positions PEDEVCO as a significant player in the Northern DJ Basin and Powder River Basin regions with substantial oil-weighted assets.

The merger's importance lies in creating a combined entity with over 6,500 barrels of oil equivalent per day of current production, more than 80% of which is oil, across over 328,000 net acres. This transformation establishes PEDEVCO as one of the few publicly-traded companies focused exclusively on the Rockies region, with Juniper and its affiliates expected to own approximately 53% of the combined company upon conversion of the preferred shares. The company anticipates maintaining a conservative capital structure with approximately $87 million in total debt and $10 million in cash following the transaction.

J. Douglas Schick, President and CEO of PEDEVCO, emphasized the strategic significance, stating that the transaction positions the company to accelerate a consolidation and growth strategy centered in the Rockies. He noted the region offers more attractive acquisition terms compared to other areas like the Permian Basin, highlighting the potential for building a leading oil and gas company through both organic growth and strategic asset acquisitions. More information about PEDEVCO can be found at https://www.pedevco.com.

The combined company benefits from strong cash generation supported by high-percentage oil production and a competitive cost structure. With its extensive acreage position spanning multiple formations in the DJ Basin and Powder River Basin, PEDEVCO has identified well over a decade of potential future drilling inventory on its existing positions. This provides substantial runway for sustained growth without the need for immediate additional acquisitions.

Edward Geiser, Executive Managing Partner of Juniper, highlighted the firm's long-standing focus on the U.S. Rockies, citing strong well-level economics across multiple formations and extensive remaining drilling inventory. He expressed confidence that the newly transformed PEDEVCO, with its strategic asset positioning near major operators, has significant opportunity for organic growth through drilling its extensive operated inventory as well as strategic consolidation activities.

Immediate growth catalysts include thirty-two wells of varying working interest that have recently been completed or are scheduled for completion in Q4 2025 and early Q1 2026, expected to generate material production growth over the coming months. The company's enhanced scale and financial position enable it to pursue strategic consolidation opportunities in its core areas, with potential acquisitions expected to deliver accretion and operational synergies while maintaining a healthy capital structure.

The transaction financing included increasing PEDEVCO's borrowing base under its existing $250 million reserve-based lending facility with Citibank from $20 million to $120 million, with approximately $87 million drawn to fund the transaction. Additionally, the company completed a $35 million private placement of preferred shares with participation from Juniper, senior management, and new management team members. Corporate governance changes include the addition of Juniper representatives and independent directors to PEDEVCO's board, while the existing management team will lead the combined company with key additions from the portfolio companies.