Dome Energy AB. (Ticker: DOME) herein after “Dome” and/or “the Company”) is pleased to announce that in conjunction with PEDEVCO Corp. d/b/a Pacific Energy Development (NYSE: PED) it is participating in a 7 well program in the DJ Basin.
Operated by Bonanza Creek (NYSE: BCEI), the program will target the Niabrara formations with multiple wells drilled on each pad in order to maximize efficiency and reduce drilling cost. The rig is expected to arrive at the first drill site this week and will continuously drill all 7 wells.
The total cost to Pedevco and Dome for drilling and completion of the 7 wells is estimated at approximately $6.3 million. The wells will be assigned to Dome Energy, and it is forecasted that based on current oil prices Dome´s net cash flow for the first 12 months would be in the region of $4.2 Million. Transaction is subject to lenders approval.
Paul Morch, CEO, commented: “We are moving closer towards our merger with Pedevco and we are very excited about this 7 well program. This is some of the best assets in their non-operated portfolio, and we could expect more opportunities to occur. The net Initial production will be above 700 barrels of oil equivalent per day, based on history of earlier wells drilled by Bonanza Creek in the same area. By starting drilling in the DJ Basin/Wattenberg area, Dome is moving to its next stage of development. We have aggressive plans and we believe the combined Pedevco/Dome could have as many as 1,000 potential well locations in the area.”