PEDEVCO Corp. Acquires 5,678 Net Acres in Wyoming BLM Lease Sale, Expanding Mowry Shale Position

PEDEVCO nearly doubles Mowry acreage with $5.9M Wyoming lease acquisition.

What the company is saying

PEDEVCO Corp. is highlighting its success as the high bidder in the September 9-10, 2026 BLM lease sale, acquiring 5,678 net acres in Wyoming's Mowry formation for $5.9 million, or $1,045 per net acre. The company frames this as a strategic expansion, nearly doubling its Mowry position to approximately 12,000 net acres and emphasizing the area's geological potential and proximity to productive wells. Management, led by President and CEO J. Douglas Schick, describes the acquisition as a defining opportunity, stressing the attractive cost basis, ten-year lease term, and 12.5% royalty rate that allows for 87.5% net revenue interest. The tone is confident and forward-looking, with repeated assertions that the Mowry could become a cornerstone asset and enable a scalable, high-return development program. The announcement focuses on the potential for future value creation and operational flexibility, but does not provide a development timeline or specific operational plans.

What the data suggests

The company has committed $5.9 million in cash to secure 5,678 net acres, paying $1,045 per net acre in the Powder River Basin's Mowry formation. This acquisition nearly doubles PEDEVCO's Mowry holdings to approximately 12,000 net acres, suggesting a significant scaling of its prospective resource base. The leases have ten-year terms and a 12.5% royalty rate, allowing the company to retain 87.5% of net revenue interest. Nearby horizontal Mowry wells have averaged 1,400 Boe/d during their peak month, indicating potential productivity but not guaranteeing similar results for PEDEVCO's acreage. The announcement provides no current production, reserves, or cash flow data for the new tracts, and there is no disclosed development plan, capex schedule, or financial projection. The data supports a material expansion of land position but does not substantiate claims of value creation or high returns at this stage.

Analysis

The announcement provides clear, factual disclosure of a significant lease acquisition: 5,678 net acres for $5.9 million, nearly doubling PEDEVCO's Mowry position. These realised facts are well-supported by numerical data. However, the majority of the CEO's commentary is forward-looking, emphasizing the potential for scalable, high-return development, value creation, and the Mowry becoming a cornerstone asset. No development timeline, drilling plans, or financial projections are disclosed, and there is no evidence of immediate production or cash flow impact. The capital outlay is material, but all benefits are long-term and contingent on future development. The tone is optimistic and uses aspirational language that is not yet substantiated by operational or financial results.

Risk flags

• ●There is execution risk, as the company must move from land acquisition to actual drilling and production to realize value; no development timeline or operational plan is disclosed, making the path to cash flow uncertain.
• ●The $5.9 million capital outlay is material for a company of PEDEVCO's size, and the return on this investment depends entirely on future development success in the Mowry formation, which remains unproven on these specific tracts.
• ●The announcement relies heavily on analog production data from nearby wells (1,400 Boe/d peak month) rather than results from PEDEVCO's own acreage, introducing geological and operational risk if the new tracts do not perform similarly.

Bottom line

PEDEVCO has materially expanded its Mowry formation footprint by acquiring 5,678 net acres for $5.9 million, nearly doubling its position to 12,000 net acres and securing favorable lease terms with a 12.5% royalty rate and 87.5% net revenue interest. The company is positioning this as a strategic move with long-term upside, citing strong regional well productivity and the potential for scalable development. However, the announcement provides no operational plan, drilling schedule, or financial projections, and all value is contingent on future development success. The narrative is credible regarding the facts of the acquisition but aspirational in projecting future returns. Investors should recognize that this is a long-term, high-upside but high-uncertainty move, with the next actionable milestone being the disclosure of concrete development plans or initial drilling results. The key takeaway is that PEDEVCO has secured a larger land position, but the investment case will hinge on future execution and operational delivery.

Announcement summary

(NYSE:PED) PEDEVCO Corp. announced that it was the high bidder on multiple tracts in the Bureau of Land Management (BLM) competitive lease sale held September 9-10, 2026, acquiring approximately 5,678 net acres in Wyoming for approximately $5.9 million, or $1,045 per net acre, in the highly prospective Mowry formation in the Powder River Basin. The acquisition was funded through cash on hand. This acquisition nearly doubles PEDEVCO's Mowry position to approximately 12,000 net acres in this specific prospect area. The leases have ten-year terms and a 12.5% royalty rate, allowing the company to retain 87.5% Net Revenue Interest. The targeted Middle Mowry formation is described as organic-rich and silica-rich, extending from nearby producing areas into PEDEVCO's acreage. Nearby horizontal Mowry wells averaged approximately 1,400 Boe/d during their peak month of production. J. Douglas Schick, President and Chief Executive Officer of PEDEVCO, stated that the BLM lease sale presented an opportunity to secure acreage that can play a defining role in PEDEVCO's future. He noted that the tracts directly offset a portion of the company's existing Mowry position and represent a natural extension of its core operating area. Schick emphasized that the leases were acquired at an attractive cost basis and, with a 10-year primary term, provide significant flexibility for disciplined and value-accretive development. He believes PEDEVCO is well-positioned to build a scalable, high-return development program in the Mowry play. Schick also highlighted the potential for the Mowry to become a cornerstone of the company's portfolio, with successful development establishing a repeatable drilling program and a substantially larger production and cash flow base. He stated that securing this position gives PEDEVCO greater scope to build a meaningful development program and participate in the value created as the play advances. The geological characteristics of the new tracts are consistent with the company's existing acreage and reinforce confidence in the Mowry's long-term development potential. PEDEVCO looks forward to continuing to execute on its growth strategy and creating value for shareholders.

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