Pacific Energy Development Provides Update on Kazakhstan Asset and East Zhagabulak

PEDEVCO Corp. d/b/a Pacific Energy Development, an energy company engaged in the acquisition and development of strategic, high-growth energy projects, today provided an update on the Company’s pending acquisition of a 5% interest in Caspian Energy Inc. (“Caspian Energy”), a Canadian publicly-traded company which is in the process of acquiring a 100% working interest in production and exploration licenses covering an approximate 380,000 acre oil and gas producing asset located in the Pre-Caspian Basin in Kazakhstan (the “Caspian Transaction”). As previously announced by Pacific Energy Development, the Company has no further funding obligation for the future development of the Kazakhstan asset.

This Kazakhstan asset is located in the North Block of the Pre-Caspian Basin, one of the largest producing basins in Kazakhstan, and is covered by an exploration license issued by the Republic of Kazakhstan, held by Caspian Energy’s Kazakhstan subsidiary, Aral Petroleum. Aral Petroleum currently has one producing oilfield in this asset, the East Zhagabulak (EZ) oilfield, which recently entered the commercial production stage with a 20 year production license expiring in 2034. Aral Petroleum also has several oil prospects in the asset that are currently in the exploration stage.

According to public regulatory filings made by Caspian Energy on November 14, 2014, Caspian Energy has scheduled a special meeting of its shareholders on December 12, 2014 to approve the Caspian Transaction.

As publicly disclosed by Caspian Energy:

• Upon closing the Caspian Transaction, Frank C. Ingriselli, the Chairman and Chief Executive Officer of the Company, will join the Board of Directors of Caspian Energy to serve as an independent director and as a member of Caspian Energy’s Audit Committee.

• Aral Petroleum has successfully obtained a renewed gas flaring and emission permit for the East Zhagabulak oilfield. The permit will allow the three previously producing wells to re-commence their commercial production, which wells Aral Petroleum voluntarily shut-in at the end of 2013 pending renewal of this permit. Prior to their voluntary shut-in, these three wells, EZ #301, EZ #306 and EZ #315, were producing just under 1,300 bopd, with Caspian Energy expecting similar production rates when production is recommenced in October 2014.

• Aral Petroleum has obtained an additional 4-year extension on the Exploration Contract for the area outside of the East Zhagabulak oilfield (which oilfield has a 20 year production license expiring in 2034). With this extension approval obtained, Aral Petroleum is now in the process of considering additional geological exploration activities in the area.

The Pre-Caspian Basin is considered the fifth largest oil basin in the world and the North Block is one of the largest producing basins in Kazakhstan, with its neighbors including some of the largest oil fields in the world. Two of those neighboring fields are estimated to contain reserves as large as the total oil reserves in the United States.

Mr. Frank Ingriselli, Pacific Energy Development’s Chairman and Chief Executive Officer, commented: “We are very pleased with these new developments regarding the Kazakhstan asset, and are encouraged by the resumption of commercial production from the EZ Oilfield and the new prospects in addition to this producing oilfield. We look forward to the closing of our acquisition of 5% of Caspian Energy and my appointment to their Board of Directors, which Board position we believe will allow Pacific Energy Development to have a meaningful impact on the continued development and commercialization of the Kazakhstan asset, while providing valuable oversight of our investment.”