PEDEVCO Closes Acquisition 28k Acres In Colorado

(RTTNews) - PEDEVCO Corp. PED) said Monday it has closed the acquisition of an interest in 40 wells and about 28,000 net acres in the DJ Basin, Colorado from an independent U.S. oil and gas company in a deal valued at about $28 million in cash.

In order to finance the acquisition and provide the Company with sufficient capital to commence a development program covering the new acreage, the company entered into a 3-year term debt facility with RJ Resources.

As part of the transaction, RJ Resources, will be a 50% working interest partner with the company in the development of its assets, allowing the company to undertake a more aggressive drilling program, in 2014. As a result, the company has an interest in 14,000 net acres after closing.