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.