PEDEVCO Corp (NYSE:PED), also known as Pacific Energy Development, has closed a strategic investment, restructuring its balance sheet to erase more than US$75mln in debt.
The debt was replaced with US$7.7mln in three-year 8% senior note funded by SK Energy LLC, run by Simon Kukes. The oil industry investor is the former CEO of Russian oil giant Yukos and has made deals with Phillips, Amoco and Hess Corporation.
Shares of the California-based company jumped more than 40% to US$3.60 in Thursday pre-market trading. Since the announcement, shares have skyrocketed from a close of US$0.31 Tuesday to US$2.37 Wednesday -- a more than 600% boost.
The energy company estimates that shareholder equity has been increased to more than US$64mln as a result of the deals.
PEDEVCO acquires and develops high-value energy projects, including shale oil and gas assets, in the US.
Its principal asset is located at the D-J Basin in Weld and Morgan counties in Colorado.
CEO Frank Ingriselli recently came out of retirement earlier this month to get the company back on track and help it to raise more capital.
“We know how to cut costs. We’ve done it and now we’re ready to grow and get some new capital in there,” said Ingriselli in a recent interview with Proactive Investors.