PEDEVCO Corp. has entered into a joint development agreement with a Denver-BASED private equity-backed E&P to develop drilling spacing units (DSU) in the Denver-Julesburg (D-J) Basin.

The companies will develop PEDEVCO’s Roth and Amber DSUs in Weld County, Colorado, the company said March 3. The name of the private equity firm and its backer were not disclosed.

Under the terms of the agreement, in exchange for the operator's payment of approximately $1.7 million, PEDEVCO agreed to submit spacing applications to the Colorado Energy and Carbon Management Commission to amend the company's existing Roth and Amber DSUs to approximately 1,600 acres from approximately 1,280 acres. PEDEVCO will transfer operatorship of the DSUs to the operator, and jointly participate in the development of the Roth DSU, with each party having not less than a 40% working interest.

The operator will commence the drilling of five new horizontal wells in the Roth DSU in third-quarter 2025, with completion estimated in the fourth quarter. PEDEVCO retains the right to assume operations in the event the wells are not timely commenced.

Upon the completion of the five Roth DSU wells—but no later than June 30, 2026— the operator will have the option to acquire up to 50% of PEDEVCO’s leasehold interest in the Amber DSU, resulting in each of the company and the operator holding up to 45% of the working interests.

J. Douglas Schick, PEDEVCO president and CEO, said the joint development agreement aligns the company with one of the “top operators in the D-J Basin to develop our Roth DSU in 2025.”

“The operator has a continuous rig running in the area, which should result in PEDEVCO realizing economies of scale and cost savings from this collaboration,” Schick said. “PEDEVCO has worked closely with the operator and has participated in several highly economic projects with the operator over the past several years, which gives PEDEVCO a high degree of confidence in their operatorship of these DSUs.”

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