Pacific Energy Development Confirms Talks to Sell Rare Earth Interest
DANVILLE, CA--(Marketwired - May 28, 2015) - PEDEVCO Corp. d/b/a Pacific Energy Development (NYSE MKT: PED) (the "Company"), an energy company engaged in the acquisition and development of strategic high-value energy projects in the U.S., confirmed today that it is in talks with a couple of parties to sell its interest in a rare earth minerals joint venture in China.
The Company's Chairman and Chief Executive Officer, Mr. Frank C. Ingriselli visited the joint ventures' manufacturing site in Baotou, Inner Mongolia last week and met with two potential buyers in Beijing and Inner Mongolia.
Commenting on the potential sale, Mr. Ingriselli stated: "As we have previously announced, the sole focus of our Company is to develop the large portfolio of high return well locations we currently have in the D-J Basin Wattenberg shale play. We believe this rare earth asset owned in partnership with the largest rare earth company in the world (which was profiled several weeks ago on the 60 Minutes television show) would be highly strategic to a company focused on mining activities. Upon the successful divestiture of our rare earth asset, we plan to use the proceeds to expand our U.S. drilling operations."
Pacific Energy Development holds a 6% joint venture interest in Rare Earth Ovonic Metal Hydride JV Co. Ltd., a privately held China-based rare earth metal production company located in Inner Mongolia. In addition, the Company also holds a seat on the board of directors in this joint venture. Rare Earth Ovonic has been in commercial production of mischmetal-based metal hydride powders since 2004. The Company's joint venture partner in this venture produces over 50% of the world's production of rare earth material. In late 2011, the Company signed a letter of intent to sell this interest for $10 million, but subsequently did not move forward with the transaction.
About Pacific Energy Development (PEDEVCO Corp.)
PEDEVCO Corp, d/b/a Pacific Energy Development (NYSE MKT: PED), is a publicly-traded energy company engaged in the acquisition and development of strategic, high growth energy projects, including shale oil and gas assets, in the United States. The Company's principal asset is its approximately 27,000 net acre D-J Basin Asset located in the D-J Basin in Colorado. Pacific Energy Development is headquartered in Danville, California, with an operations office in Houston, Texas.
Cautionary Statement Regarding Forward Looking Statements
All statements in this press release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The Company operates in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statements. Readers are also urged to carefully review and consider the other various disclosures in the Company's public filings with the SEC.