<SEC-DOCUMENT>0001654954-21-012393.txt : 20211118
<SEC-HEADER>0001654954-21-012393.hdr.sgml : 20211118
<ACCEPTANCE-DATETIME>20211118080050
ACCESSION NUMBER:		0001654954-21-012393
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20211118
DATE AS OF CHANGE:		20211118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEDEVCO CORP
		CENTRAL INDEX KEY:			0001141197
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				223755993
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-250904
		FILM NUMBER:		211422632

	BUSINESS ADDRESS:	
		STREET 1:		575 N. DAIRY ASHFORD
		STREET 2:		ENERGY CENTER II, SUITE 210
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77079
		BUSINESS PHONE:		855-733-3826

	MAIL ADDRESS:	
		STREET 1:		575 N. DAIRY ASHFORD
		STREET 2:		ENERGY CENTER II, SUITE 210
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77079

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLAST ENERGY SERVICES, INC.
		DATE OF NAME CHANGE:	20050610

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VERDISYS INC
		DATE OF NAME CHANGE:	20010523
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>ped_424b5.htm
<DESCRIPTION>424B5
<TEXT>
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<title>ped_424b5</title>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Filed pursuant to Rule 424(b)(5)</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Registration No. 333-250904</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Prospectus Supplement</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(To prospectus dated December 2, 2020)</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
$3,600,000</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="ped1.jpg"></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Stock</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">PEDEVCO
Corp. <font style="color: #000000; background-color: #FFFFFF">(the
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">Company</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;,
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">we</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;,
or &#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">us</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)
has</font>, which we refer to as the Sales Agreement, with Roth
Capital Partners, LLC, or Roth Capital Partners, the
&#x201C;<font style="text-decoration: underline">Sales
Agent,</font>&#x201D; relating to the issuance and sale of our
common stock, par value <font style="background-color: #FFFFFF">$0.001</font> per share offered by this
prospectus supplement and the accompanying prospectus. In
accordance with the terms of the Sales Agreement, we may offer and
sell shares of our comment stock under this prospectus supplement
and the accompanying prospectus, having an aggregate offering price
of up to $3,600,000 from time to time through or to Roth Capital
Partners, as sales agent or principal.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Our
common stock is listed on the NYSE American under the symbol
&#x201C;<font style="text-decoration: underline">PED.</font>&#x201D;
On November 16, 2021, the last reported sales price of our common
stock was $1.29.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Sales of shares of our common stock under this
prospectus supplement, if any, may be made by any method deemed to
be an &#x201C;</font><font style="text-decoration: underline; color: #000000">at the market
offering</font><font style="color: #000000">&#x201D; as defined in
Rule 415 under the Securities Act of 1933, as amended (the
&#x201C;</font><font style="text-decoration: underline; color: #000000">Securities
Act</font><font style="color: #000000">&#x201D;).</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The Sales Agent is not required to sell any
specific number or dollar amount of securities. Instead, the Sales
Agent has agreed to use its commercially reasonable efforts
consistent with its normal trading and sales practices, on mutually
agreed terms between the Sales Agent and the Company. There is no
arrangement for funds to be received in any escrow, trust or
similar arrangement. The Sales Agent will be entitled to
compensation under the terms of the Sales Agreement at a commission
rate equal to 3.0% of the gross sales price from sales of shares
under this offering, provided that the first $40,000 of fees
payable under the Sales Agreement is to be refunded to the Company.
We will use the net proceeds from any sales under this prospectus
supplement as described under &#x201C;</font></font><a href="#USE_OF_PROCEEDS_S"><font><font style="font-family: Times New Roman; font-size: 13px; text-decoration: underline;">U</font></font></a><font style="text-decoration: underline"><a href="#USE_OF_PROCEEDS_S"><font style="text-decoration: underline;"><font style="font-family: Times New Roman; font-size: 13px;">se
of Proceeds</font></font></a></font><font>&#x201D;.</font>
<font style="font-family: Times New Roman; font-size: 13px">The
amount of proceeds we receive from sales of our common stock, if
any, will depend on the number of shares actually sold and the
offering price of such shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
connection with the sale of common stock on our behalf, the Sales
Agent will be deemed to be an underwriter within the meaning of the
Securities Act, and its compensation as the Sales Agent will be
deemed to be underwriting commissions or discounts. We have agreed
to provide indemnification and contribution to the Sales Agent with
respect to certain liabilities, including liabilities under the
Securities Act.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">As
of November 17, 2021, the aggregate market value of our voting and
non-voting common stock held by non-affiliates pursuant to General
Instruction I.B.6. of Form S-3 was $58,819,742 which was calculated
based on 84,210,203 shares of our common stock outstanding held by
non-affiliates and at a price of $2.11 per share, the closing price
of our common stock on October&#xA0;1, 2021. Pursuant to General
Instruction I.B.6 of Form S-3, in no event will we sell shares
pursuant to this prospectus supplement with a value of more than
one-third of the aggregate market value of our common stock held by
non-affiliates in any 12-month period, so long as the aggregate
market value of our common stock held by non-affiliates is less
than $75,000,000. We have sold $15,952,752 of shares of common
stock pursuant to General Instruction I.B.6 of Form S-3 during the
prior 12-month calendar period that ends on, and includes, the date
of this prospectus supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Because
there is no minimum offering amount required as a condition to
close this offering, the actual total public offering amount,
commissions and net proceeds to us, if any, are not determinable at
this time. There is no arrangement to place proceeds of the
offering in escrow, trust or similar arrangement. See
&#x201C;</font><font><a href="#PLAN_OF_DISTRIBUTION_S"><font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px;"><font style="text-decoration: underline"><font style="text-decoration: underline">Plan of
Distributi</font>on</font></font></font><font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px;">.</font></font></a></font><font><a href="#PLAN_OF_DISTRIBUTION_S"></a>&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Investing
in the Shares involves a high degree of risk. Before deciding
whether to invest in our securities, you should consider carefully
the risks that we have described under the caption
&#x201C;<font><a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk
Factors</font></a></font>&#x201D; beginning on page S-9 of this
prospectus supplement, on page <font style="font-family: Times New Roman; font-size: 13px">1</font> of the
accompanying prospectus and under the caption &#x201C;Risk
Factors&#x201D; in our most recently filed Annual Report on Form
10-K and most recently filed Quarterly Reports on Form 10-Q, each
as filed with the Securities and Exchange Commission, which are
incorporated herein by reference in their entirety.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Neither
the U.S. Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus supplement or the
accompanying prospectus is truthful or complete. Any representation
to the contrary is a criminal offense.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Lead Agent</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Roth Capital Partners</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Co-Agent</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
EF Hutton</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
division of Benchmark Investments, LLC</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
The date of this prospectus supplement is November 17,
2021.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
TABLE OF CONTENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><a name="_Hlk87435994"><!--anchor--></a>&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Prospectus Supplement</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
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<tr>
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;padding-bottom:4px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; display:inline-block;vertical-align:bottom;width:10%;padding-bottom:4px">&#xA0;</font><font style="text-align: center; display:inline-block;vertical-align:bottom;width:80%;padding-bottom:4px">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Page</font></div>
</div>
</font><font style="text-align: left; display:inline-block;vertical-align:bottom;width:10%;padding-bottom:4px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_Ref87442105"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">About
This Prospectus Supplement</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-1&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_cautionary_note_regarding">
<font style="color: #0000ff">Cautionary Note Regarding
Forward-Looking Statements</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-3&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_prospectus_supplement_summary">
<font style="color: #0000ff">Prospectus Supplement
Summary</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-4&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_the_offering">
<font style="color: #0000ff">The Offering</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-8&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_RISK_FACTORS_2"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">Risk
Factors</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-9&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_Ref87442127"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">Use
of Proceeds</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-17&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_dilution">
<font style="color: #0000ff">Dilution</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-17&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_description_of_securities">
<font style="color: #0000ff">Description of Securities We Are
Offering</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-17&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_Ref87442136"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">Plan
of Distribution</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-18&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_Ref87442140"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">Legal
Matters</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
<font style="vertical-align: bottom;"><font style="vertical-align: bottom;"><font style="vertical-align: bottom;">S-19</font></font></font>&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><a href="#_Ref87442146"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px">Experts</font></a></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-<font style="vertical-align: bottom;"><font style="vertical-align: bottom;">19</font></font>&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_information_incorporated_by">
<font style="color: #0000ff">Information Incorporated by
Reference</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-20&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #0000ff; font-family: Times New Roman; font-size: 13px"><a href="#_where_you_can_2">
<font style="color: #0000ff">Where You Can Find More
Information</font></a></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px">&#xA0; &#xA0;
S-21&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">

<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
TABLE OF CONTENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><a name="_Hlk87435994"></a>&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Prospectus<br></font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit; width: 100%; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: middle; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 12%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Page</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">About
This Prospectus</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Risk
Factors</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">About
PEDEVCO</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Forward-Looking
Statements</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Use
of Proceeds</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Description
of Capital Stock</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Description
of Warrants</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">6<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Description
of Units</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Plan
of Distribution</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">8<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Legal
Matters</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">9<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Experts</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Where
You Can Find More Information</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">9<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 88%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #0000ff; font-size: 13px; font-family: Times New Roman">Incorporation
of Certain Documents by Reference</font></div>
</td>
<td style="vertical-align: middle; width: 12%;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10<br></font></div>
</td>
</tr></table>
</div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
<br></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">&#xA0;
<font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_Ref87442105"><!--anchor--></a>ABOUT
THIS PROSPECTUS SUPPLEMENT</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">This prospectus supplement and the accompanying
prospectus, dated December 2, 2020, are part of a registration
statement on Form S-3 (File No. 333-250904) that we filed with the
Securities and Exchange Commission, utilizing a
&#x201C;</font><font style="text-decoration: underline; color: #000000">shelf</font><font style="color: #000000">&#x201D;
registration process on November 23, 2020 and that was declared
effective on December 2, 2020. Under this process, we may sell from
time to time in one or more offerings up to an aggregate of
$100,000,000 in our securities described in the accompanying
prospectus. To date, we have sold $15,952,752 of securities under
the &#x201C;</font><font style="text-decoration: underline; color: #000000">shelf</font><font style="color: #000000">&#x201D;
registration statement, when not including securities proposed to
be sold in this offering.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">You
should rely only on the information contained or incorporated by
reference into this prospectus supplement, the accompanying
prospectus and any free writing prospectus. We have not, and the
Sales Agent have not, authorized anyone to provide you with
different information. If anyone provides you with different or
additional information, you should not rely on it. We are not, and
the Sales Agent are not, making an offer to sell these securities
in any state or jurisdiction where the offer or sale is not
permitted. You should not assume that the information contained in
this prospectus supplement, the accompanying prospectus and any
free writing prospectus is accurate on any date subsequent to the
date set forth on the front of the document or that any information
we have incorporated by reference is correct on any date subsequent
to the date of the document incorporated by reference, even though
this prospectus supplement, the accompanying prospectus and any
free writing prospectus is delivered or securities are sold on a
later date. We have filed with the SEC a registration statement on
Form S-3 with respect to the securities offered hereby. This
prospectus supplement and the accompanying prospectus do not
contain all of the information set forth in the registration
statement, parts of which are omitted in accordance with the rules
and regulations of the SEC. For further information with respect to
us and the securities offered hereby, reference is made to the
registration statement and the exhibits that are a part of the
registration statement. We will disclose any material changes in
our affairs in a post-effective amendment to the registration
statement and the accompanying prospectus of which this prospectus
supplement is a part, a future prospectus supplement, a free
writing prospectus or a future filing with the Securities and
Exchange Commission incorporated by reference in this prospectus
supplement. It is important for you to read and consider all the
information contained in this prospectus supplement and the
accompanying prospectus, including the documents incorporated by
reference therein, in making your investment decision.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
document is in two parts. The first part is this prospectus
supplement, which adds to and updates information contained in the
accompanying prospectus and the documents incorporated by reference
into the accompanying prospectus. The second part is the
accompanying prospectus, which gives more general information, some
of which may not apply to this offering of shares. This prospectus
supplement adds, updates and changes information contained in the
accompanying prospectus and the information incorporated by
reference. To the extent the information contained in this
prospectus supplement differs or varies from the information
contained in the accompanying prospectus or any document
incorporated by reference, the information in this prospectus
supplement shall control.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">We further note that
the representations, warranties and covenants made by us or
the</font> <font style="color: #000000">Sales Agent</font>
<font style="color: #000000; background-color: #FFFFFF">in any
agreement that is filed as an exhibit to any document that is
incorporated by reference in the accompanying prospectus were made
solely for the benefit of the parties to such agreement, including,
in some cases, for the purpose of allocating risk among the parties
to such agreements, and should not be deemed to be a
representation, warranty or covenant to you. Moreover, such
representations, warranties or covenants were accurate only as of
the date when made. Accordingly, such representations, warranties
and covenants should not be relied on as accurately representing
the current state of our affairs.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
Persons outside the United States who come into possession of this
prospectus supplement or the accompanying prospectus must inform
themselves about, and observe any restrictions relating to, the
offering of the securities and the distribution of this prospectus
supplement and accompanying prospectus outside of the United
States.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 372px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
logo and other trade names, trademarks, and service marks of
PEDEVCO Corp. appearing in this prospectus supplement and the
accompanying prospectus are the property of our company. Other
trade names, trademarks, and service marks appearing in this
prospectus supplement and the accompanying prospectus are the
property of their respective holders.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The market data and certain other statistical
information used throughout this prospectus supplement and the
accompanying prospectus are based on independent industry
publications, government publications and other published
independent sources. Although we believe that these third-party
sources are reliable and that the information is accurate and
complete, we have not independently verified the information. Some
data is also based on our good faith estimates. While we believe
the market data included in this prospectus supplement, the
accompanying prospectus and the information incorporated herein and
therein by reference is generally reliable and is based on
reasonable assumptions, such data involves risks and uncertainties
and is subject to change based on various factors, including those
discussed under the heading &#x201C;<a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk
Factors</font></a>&#x201D; beginning on page S-</font>9 <font style="color: #000000">of this prospectus supplement and on page</font>
<font style="color: #000000">1</font> <font style="color: #000000">of the accompanying
prospectus.</font></font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-1<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">All references to &#x201C;</font><font style="text-decoration: underline; color: #000000">we</font><font style="color: #000000">&#x201D;, &#x201C;</font><font style="text-decoration: underline; color: #000000">our</font><font style="color: #000000">&#x201D;, &#x201C;</font><font style="text-decoration: underline; color: #000000">us</font><font style="color: #000000">&#x201D;, the &#x201C;</font><font style="text-decoration: underline; color: #000000">Company</font><font style="color: #000000">&#x201D;,
and &#x201C;</font><font style="text-decoration: underline; color: #000000">PEDEVCO</font><font style="color: #000000">&#x201D;
in this prospectus supplement mean PEDEVCO Corp. and all entities
owned or controlled by us except where it is made clear that the
term means only the parent company. The term
&#x201C;</font><font style="text-decoration: underline; color: #000000">you</font><font style="color: #000000">&#x201D; refers to a prospective investor. Please
carefully read this prospectus supplement, the accompanying
prospectus, any free writing prospectus and any pricing supplement,
in addition to the information contained in the documents we refer
to under the headings &#x201C;<a href="#_WHERE_YOU_CAN_2"><font style="text-decoration: underline;">Where
You Can Find More Information</font></a>&#x201D; and &#x201C;<a href="#_INFORMATION_INCORPORATED_BY"><font style="text-decoration: underline;">Incorporation of Certain Documents by
Reference</font></a>&#x201D;.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
addition, unless the context otherwise requires and for the
purposes of this prospectus and the accompanying prospectus
supplement:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 48px; margin-right: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
<font style="color: #000000">"Bbl" refers to one stock tank barrel,
or 42 U.S. gallons liquid volume, used in this report in reference
to crude oil or other liquid hydrocarbons;</font></font></div>
</div>
</div>

<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">

<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 48px; margin-right: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
<font style="color: #000000">"Boe<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x201D; refers "Boe" refers to barrels of oil
equivalent, determined using the ratio of one Bbl of crude oil,
condensate, or natural gas liquids, to six Mcf of natural
gas</font></font>;</font></font></div>
</div>
</div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">Bopd</font><font style="color: #000000">&#x201D;
refers to barrels of oil day;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">Exchange
Act</font><font style="color: #000000">&#x201D; refers to the
Securities Exchange Act of 1934, as amended;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">Mcf</font><font style="color: #000000">&#x201D;
refers to a thousand cubic feet of natural gas;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">NGL</font><font style="color: #000000">&#x201D;
refers to natural gas liquids;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">NYMEX</font><font style="color: #000000">&#x201D;
New York Mercantile Exchange;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">SEC</font><font style="color: #000000">&#x201D;
or the &#x201C;</font><font style="text-decoration: underline; color: #000000">Commission</font><font style="color: #000000">&#x201D;
refers to the United States Securities and Exchange Commission;
and</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">&#x201C;</font><font style="text-decoration: underline; color: #000000">Securities
Act</font><font style="color: #000000">&#x201D; refers to the
Securities Act of 1933, as amended.</font></font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-2<br></font></div>
</div>
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<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_CAUTIONARY_NOTE_REGARDING"><!--anchor--></a><a name="_Ref87442110"><!--anchor--></a>CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Certain information included in this prospectus supplement, the
prospectus, any free writing prospectus we may file, the documents
or information incorporated by reference herein, other reports
filed by us under the Exchange Act contain forward-looking
statements within the meaning of Section 27A of the Securities Act,
Section 21E of the Exchange Act, and the Private Securities
Litigation Reform Act of 1995, as amended. These forward-looking
statements are based on our management&#x2019;s belief and
assumptions and on information currently available to our
management. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, these statements
relate to future events or our future financial performance, and
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">In some
cases, you can identify forward-looking statements by terminology
such as &#x201C;<font style="text-decoration: underline">may,</font>&#x201D; &#x201C;<font style="text-decoration: underline">should,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">expects,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">intends,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">plans,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">anticipates,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">believes,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">estimates,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">predicts,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">potential,</font>&#x201D;
&#x201C;<font style="text-decoration: underline">continue</font>&#x201D; or the negative
of these terms or other comparable terminology. These statements
are only predictions. You should not place undue reliance on
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which are, in some cases,
beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from
current expectations include, among other things, those listed
under, and incorporated by reference in, &#x201C;<font style="color: #000000"><a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk Factors</font></a>&#x201D; and
elsewhere in this prospectus supplement.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">If
one or more of these risks or uncertainties occur, or if our
underlying assumptions prove to be incorrect, actual events or
results may vary significantly from those implied or projected by
the forward-looking statements. No forward-looking statement is a
guarantee of future performance. You should read this prospectus,
those documents incorporated by reference herein, and those
documents which we have filed with the SEC as exhibits to the
registration statement, of which this prospectus is a part,
completely and with the understanding that our actual future
results may be materially different from any future results
expressed or implied by these forward-looking
statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Forward-looking
statements speak only as of the date of this prospectus supplement
or the date of any document incorporated by reference in this
prospectus supplement or any free writing prospectus, as
applicable. We anticipate that subsequent events and developments
will cause our views to change. However, while we may elect to
update these forward-looking statements at some point in the
future, we have no current intention of doing so except to the
extent required by applicable law. You should therefore not rely on
these forward-looking statements as representing our views as of
any date subsequent to the date of this prospectus.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">You should also consider carefully the statements
under &#x201C;<a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk Factors</font></a>&#x201D; and
other sections of this prospectus supplement and the accompanying
prospectus, and the documents we incorporate by reference herein or
therein, or which we file as part of any free writing prospectus,
which address additional facts that could cause our actual results
to differ from those set forth in the forward-looking statements.
We caution investors not to place significant reliance on the
forward-looking statements contained in this prospectus supplement,
any free writing prospectus, and the documents we incorporate by
reference. We undertake no obligation to publicly update or review
any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as otherwise
required by law.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div id="pn" style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">S-3</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_PROSPECTUS_SUPPLEMENT_SUMMARY"><!--anchor--></a><a name="_Ref87442114"><!--anchor--></a>PROSPECTUS
SUPPLEMENT SUMMARY</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
This summary is not complete and does not contain all of the
information that you should consider before investing in the
securities offered by this prospectus supplement and accompanying
prospectus. You should read this summary together with the entire
prospectus supplement and the accompanying prospectus, including
our consolidated financial statements, the notes to those
consolidated financial statements and the other documents that are
incorporated by reference in this prospectus supplement and the
accompanying prospectus, before making an investment decision. See
<font style="color: #000000">&#x201C;<a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;"><font style="text-decoration: underline">Risk
Factors</font></font></a>&#x201D;</font> beginning on page S-9 of
this prospectus supplement, <font style="font-family: Times New Roman; font-size: 13px;"><font style="font-family: Times New Roman; font-size: 13px;">and beginning on
page 1 of the accompanying prospectus,</font></font> along with the
risk factors in our most recent Annual Report on Form 10-K, and our
most recent Quarterly Reports on Form 10-Q, which are incorporated
by reference herein, for a discussion of the risks involved in
investing in our securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">
General Overview</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">We are
an oil and gas company focused on the acquisition and development
of oil and natural gas assets where the latest in modern drilling
and completion techniques and technologies have yet to be applied.
In particular, we focus on legacy proven properties where there is
a long production history, well-defined geology, and existing
infrastructure that can be leveraged when applying modern field
management technologies. Our current properties are located in the
San Andres formation of the Permian Basin situated in West Texas
and eastern New Mexico (the &#x201C;<font style="text-decoration: underline">Permian Basin</font>&#x201D;) and in
the Denver-Julesberg Basin (&#x201C;<font style="text-decoration: underline">D-J Basin</font>&#x201D;) in Colorado.
As of September 30, 2021, we held <font style="color: #000000">33,392</font> net Permian Basin acres located in
Chaves and Roosevelt Counties, New Mexico, through our wholly-owned
operating subsidiary, Pacific Energy Development Corp.
(&#x201C;<font style="text-decoration: underline">PEDCO</font>&#x201D;), which we refer
to as our &#x201C;<font style="text-decoration: underline">Permian
Basin Asset,</font>&#x201D; and approximately <font style="color: #000000">11,580</font> net D-J Basin acres located in Weld
and Morgan Counties, Colorado, through our wholly-owned operating
subsidiary, Red Hawk Petroleum, LLC (&#x201C;<font style="text-decoration: underline">Red Hawk</font>&#x201D;), which asset
we refer to as our &#x201C;<font style="text-decoration: underline">D-J Basin Asset.</font>&#x201D; As of
September 30, 2021, we held interests in 382 gross (303 net) wells
in our Permian Basin Asset of which 35 are active producers, 14 are
active injectors and two are active Saltwater Disposal Wells
(&#x201C;SWDs&#x201D;), all of which are held by PEDCO and operated
by its wholly-owned operating subsidiaries, and interests in 74
gross (21.0 net) wells in our D-J Basin Asset, of which 18 gross
(16.2 net) wells are operated by Red Hawk and currently producing,
35 gross (5.2 net) wells are non-operated, and 21 wells have an
after-payout interest.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Strategy</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">We
believe that horizontal development and exploitation of
conventional assets in the Permian Basin and development of the
Wattenberg and Wattenberg Extension in the D-J Basin, represent
among the most economic oil and natural gas plays in the U.S. We
plan to optimize our existing assets and opportunistically seek
additional acreage proximate to our currently held core acreage, as
well as other attractive onshore U.S. oil and gas assets that fit
our acquisition criteria, that Company management believes can be
developed using our technical and operating expertise and be
accretive to stockholder value.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Specifically,
we seek to increase stockholder value through the following
strategies:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Grow
production, cash flow, and reserves by developing our operated
drilling inventory and participating opportunistically in
non-operated projects</font>. We believe our extensive inventory of
drilling locations in the Permian Basin and the D-J Basin, combined
with our operating expertise, will enable us to continue to deliver
accretive production, cash flow, and reserves growth. We have
identified approximately 150 gross drilling locations across our
Permian Basin acreage based on 20-acre spacing. We believe the
location, concentration, and scale of our core leasehold positions,
coupled with our technical understanding of the reservoirs will
allow us to efficiently develop our core areas and to allocate
capital to maximize the value of our resource base.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Apply modern
drilling and completion techniques and technologies</font>. We own
and intend to own additional properties that have been historically
underdeveloped and underexploited. We believe our attention to
detail and application of the latest industry advances in
horizontal drilling, completions design, frac intensity, and
locally optimal frac fluids will allow us to successfully develop
our properties.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Optimization of
well density and configuration.</font> We own properties that are
legacy conventional oil fields characterized by widespread vertical
development and geological well control. We utilize the extensive
petrophysical and production data of such legacy properties to
confirm optimal well spacing and configuration using modern
reservoir evaluation methodologies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Maintain a high
degree of operational control.</font> We believe that by retaining
high operational control, we can efficiently manage the timing and
amount of our capital expenditures and operating costs, and thus
key in on the optimal drilling and completions strategies, which we
believe will generate higher recoveries and greater rates of return
per well.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Leverage
extensive deal flow, technical and operational experience to
evaluate and execute accretive acquisition opportunities</font>.
Our management and technical teams have an extensive track record
of forming and building oil and gas businesses. We also have
significant expertise in successfully sourcing, evaluating, and
executing acquisition opportunities. We believe our understanding
of the geology, geophysics, and reservoir properties of potential
acquisition targets will allow us to identify and acquire highly
prospective acreage to grow our reserve base and maximize
stockholder value.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;
<font style="font-weight: bold; font-style: italic">Preserve
financial flexibility to pursue organic and external growth
opportunities.</font> We intend to maintain a disciplined financial
profile that will provide us flexibility across various commodity
and market cycles. We intend to utilize our strategic partners and
public currency to continuously fund development and
operations.</font></div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Our strategy is to be the operator and/or a
significant working interest owner, directly or through our
subsidiaries and joint ventures, in the majority of our acreage so
that we can dictate the pace of development in order to execute our
business plan. Our 2021 development plan includes several projects
delayed from our 2019 Phase II Permian Basin Asset development
program, which were put on hold through 2020 due to the COVID-19
outbreak and the related low oil price environment through most of
2020. In late 2020, we resumed work on these carryover projects,
including the completion of a SWD well in the Chaveroo field
(Chaves and Roosevelt Counties, New Mexico) which was brought
online in September 2020. In September 2020, we brought online one
horizontal San Andres well from our 2019 Phase I Permian Basin
Asset development program that was previously shut in due to salt
water disposal capacity constraints. In January 2021, we initiated
production hookup and commencement of two horizontal San Andres
wells drilled in our 2019/2020 Phase II Permian Basin Asset
development program. Over the remainder of 2021, we plan to permit
up to ten horizontal San Andres wells in our Permian Basin Asset
and anticipate drilling and completing at least two of these wells
in late 2021 or early 2022, with the remainder planned to be
drilled and completed in 2022. We have also completed several well
reactivation projects and completed several enhancement and
facilities projects across our operated Permian Basin
Asset</font><font style="color: #000000">. We also plan to spend
approximately $1.2 million for participation in four non-operated
well projects (with a working interest of 6.52%) on our D-J Basin
Asset that were drilled and completed in the third quarter of 2021.
We expect to pay those costs and begin to receive revenue from
those four wells in the fourth quarter of 2021. Additionally, we
have elected to participate in eight wells in the D-J Basin that
are currently planned to be drilled in the first quarter of 2022,
at a net cost of approximately $2.1 million (with a working
interest of 4.699%) pursuant to well proposals received from third
party operators on lands in which we share a leasehold interest;
provided that no money has been spent to date on these eight well
proposals. We have advanced our business development activities in
the D-J Basin over the past year, which we believe will add
opportunities for growth and development. We plan to continue to
evaluate D-J Basin well proposals as received from third party
operators and participate in those we deem most economic and
prospective. Our 2021 development program is based upon our current
outlook for the remainder of the year and is subject to revision,
if and as necessary, to react to market conditions, product
pricing, contractor availability, requisite permitting and capital
availability, additional non-operated well projects on our D-J
Basin Asset that may become available, capital allocation changes
between assets, acquisitions, divestitures and other adjustments
determined by the Company in the best interest of its shareholders
while prioritizing our financial strength and
liquidity.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;<font style="color: #000000">We expect that we will have sufficient cash
available to meet our needs over the foreseeable future, including
to fund the remainder of our 2021 development program, discussed
above, which cash we anticipate being available from (i) projected
cash flow from our operations, (ii) existing cash on hand, (iii)
equity infusions or loans (which may be convertible) made available
from SK Energy LLC (&#x201C;</font><font style="text-decoration: underline; color: #000000">SK
Energy</font><font style="color: #000000">&#x201D;), which is 100%
owned and controlled by Simon Kukes, our Chief Executive Officer
and director, which funding SK Energy is under no obligation to
provide, (iv) public or private debt or equity financings,
including funds which we may raise through the sale of the Shares,
and (v) funding through credit or loan facilities. In addition, we
may seek additional funding through asset sales, farm-out
arrangements, and credit facilities to fund potential
acquisitions</font> during the remainder of 2021<font style="color: #000000">.</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Impact of COVID-19</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">In December 2019, a novel strain of coronavirus,
which causes the infectious disease known as COVID-19, was reported
in Wuhan, China. The World Health Organization declared COVID-19 a
&#x201C;</font><font style="text-decoration: underline; color: #000000">Public Health
Emergency of International Concern</font><font style="color: #000000">&#x201D; on January 30, 2020, and a global pandemic
on March 11, 2020. COVID-19 and the governmental responses thereto
significantly reduced worldwide economic activity during much of
2020, and continues to threaten the global economy, as variants and
mutations of the disease continue to spread, even as vaccines have
become more widely available. While oil and gas prices have
increased above pre-pandemic levels, it is not possible at this
time for the Company to estimate the full impact that COVID-19 will
have on the Company&#x2019;s business in the future as such estimate
would need to be based on whether or not COVID-19 continues to
spread and the effectiveness of the containment of the virus, by
the governments of countries affected and in which the Company
operates. However, the Company&#x2019;s operations have previously
been disrupted, and may be disrupted again in the future due to
COVID-19. The COVID-19 outbreak and mitigation measures have also
had an adverse impact on global economic conditions, as well as an
adverse effect on the Company&#x2019;s business and financial
condition and may continue to have an adverse effect on the
Company, including on its potential to conduct financings on terms
acceptable to the Company, if at all. The Company implemented
temporary precautionary measures intended to help minimize the risk
of the virus to its employees, vendors, and guests, including
limiting the number of occupants at the Company&#x2019;s Houston
headquarters and requiring all others to work remotely, and
discouraged employee attendance at in-person work-related meetings,
which could negatively affect the Company&#x2019;s business, which
measures have recently eased in accordance with federal, state and
local guidance, and the vaccination of substantially all of the
Company&#x2019;s office-based employees. The extent to which the
COVID-19 outbreak will continue to impact the Company&#x2019;s
results will depend on future developments that are highly
uncertain and cannot be predicted, including new information that
may emerge concerning the severity of the virus, the continued
availability and efficacy of vaccines and booster shots, the
willingness of individuals to be vaccinated initially, and to
obtain booster shots, the effect of virus mutations, and the
actions to contain its impact. Any future decrease in the price of
oil, or the demand for oil and gas, as a result of COVID-19 or
otherwise, will likely have a negative impact on our results of
operations and cash flows.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">In response to the effects of COVID-19, the
Company has adopted policies, procedures, and practices both in its
Houston office headquarters and across its field operations to
protect its employees, contractors, and guests from COVID-19,
including the adoption of a COVID-19 Response Plan, implementation
of contractor questionnaires to assess COVID-19 risk and exposure
prior to entering any Company facility or worksite, adopting best
practices, guidelines and protocols recommended by the Centers for
Disease Control (the &#x201C;</font><font style="text-decoration: underline; color: #000000">CDC</font><font style="color: #000000">&#x201D;) and the Office of the Texas Governor for
the prevention of exposure and spread of COVID-19, and instituting
twice-monthly management calls discussing the COVID-19 pandemic and
the Company&#x2019;s ongoing response to the COVID-19 pandemic and
effectiveness thereof. Given the Company&#x2019;s robust online
systems and workflow practices and procedures, the Company has not
experienced any material challenges or reductions in efficiency or
effectiveness of its office-based workforce, while its field
personnel continue to attend to their daily field operations
uninterrupted, while mindful of social distancing and other
preventative measures and safeguards recommended by the CDC, and
subject to the CDC&#x2019;s updated guidance.</font></font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #212529">We plan to continue to closely monitor the global
energy markets and oil and gas pricing, with the remainder of
our</font> <font style="color: #000000">2021 development plan being
subject to revision, if and as necessary, to react to market
conditions in the best interest of its shareholders, while
prioritizing its financial strength and
liquidity.</font></font></div>
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<font>&#xA0;</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Risks That We Face</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">An investment in our securities involves a high
degree of risk. You should carefully consider the risks summarized
below. The risks are discussed more fully in, and incorporated by
reference in, the &#x201C;<a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk Factors</font></a>&#x201D;
section of this prospectus supplement and the accompanying
prospectus. These risks include, but are not limited to, the
following:</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Risks
associated with this offering, including dilution investors will
experience; the use of proceeds associated therewith; and further
dilution investors may experience;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
future price of oil, natural gas and NGL;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
effect of COVID-19 on the Company&#x2019;s operations, future
prospects, the value of its properties, and the economy in general,
including the related effect on the supply and demand, and ultimate
price of oil and natural gas;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Current
and future declines in economic activity and rescissions, and their
effect on the Company, its property, prospects and the supply and
demand, and ultimate price of oil and natural
gas;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
status and availability of oil and natural gas gathering,
transportation, and storage facilities owned and operated by third
parties;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">An
increase in the differential between the NYMEX or other benchmark
prices of oil and natural gas and the wellhead price we receive for
our production may adversely affected our business, financial
condition, and results of operations;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">New
or amended environmental legislation or regulatory initiatives
which could result in increased costs, additional operating
restrictions, or delays, or have other adverse effects on
us;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
effect of future shut-ins of our operated production, should market
conditions significantly deteriorate;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Write-downs
of a material portion of our assets due to the recent economic
downturn resulting from COVID-19 or otherwise;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Our
need for additional capital to complete future acquisitions,
conduct our operations and fund our business, and our ability to
obtain such necessary funding on favorable terms, if at
all;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Our
ability to generate sufficient cash flow to meet any future debt
service and other obligations due to events beyond our
control;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
fact that all our assets and operations are located in the Permian
Basin and the D-J Basin, making us vulnerable to risks associated
with operating in only two geographic areas;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
speculative nature of our oil and gas operations, and general risks
associated with the exploration for, and production of oil and gas;
including accidents, equipment failures or mechanical problems
which may occur while drilling or completing wells or in production
activities; operational hazards and unforeseen interruptions for
which we may not be adequately insured; the threat and impact of
terrorist attacks, cyber-attacks or similar hostilities; declining
reserves and production; and losses or costs we may incur as a
result of title deficiencies or environmental issues in the
properties in which we invest, any one of which may adversely
impact our operations;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Potential
conflicts of interest that could arise for certain members of our
management team and board of directors that hold management
positions with other entities and our largest
stockholder;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
limited control we have over activities on properties we do not
operate;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
estimates of the value of our oil and gas properties and accounting
in connection therewith;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Intense
competition in the oil and natural gas
industry;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Our
competitors use of superior technology and data resources that we
may be unable to afford or obtain the use of;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
<font style="color: #000000">Changes in the legal and regulatory
environment governing the oil and natural gas industry, including
new or amended environmental legislation or regulatory initiatives
which could result in increased costs, additional operating
restrictions, or delays, or have other adverse effects on
us;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Uncertainties
associated with enhanced recovery methods which may result in us
not realizing an acceptable return on our investments in such
projects or suffering losses;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Requirements
that we must drill on certain of acreage in order to hold such
acreage by production;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Improvements
in or new discoveries of alternative energy technologies that could
have a material adverse effect on our financial condition and
results of operations;</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-6<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Future litigation or governmental proceedings
which could result in material adverse consequences, including
judgments or settlements;</font></font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">

<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
currently illiquid and volatile market for our common
stock;</font></font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Our
dependance on the continued involvement of our present
management;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">The
fact that Mr. Simon Kukes, our Chief Executive Officer and a member
of board of directors, beneficially owns a majority of our common
stock and that his interests may be different from other
shareholders; and</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">Our
ability to maintain the listing of our common stock on the NYSE
American.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Corporate Information</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Our
principal executive offices are located at 575 N. Dairy Ashford,
Suite 210, Houston, Texas 77079, and our telephone number is (713)
221-1768.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Additional Information</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">For
additional information about us, please refer to the documents set
forth under &#x201C;<a href="#_INFORMATION_INCORPORATED_BY"><font style="text-decoration: underline;">Information Incorporated by
Reference</font></a>&#x201D; in this prospectus supplement,
including our Annual Report on Form 10-K for the year ended
December 31, 2020, and our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2021, June 30, 2021 and September 30,
2021, which are incorporated by reference herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Additional information about us is available on
our website at</font> <font style="text-decoration: underline; color: rgb(0, 0, 255);">www.pedevco.com</font><font style="color: #000000">.
We do not incorporate the information on or accessible through our
websites into this prospectus supplement or the accompanying
prospectus, and you should not consider any information on, or that
can be accessed through, our websites as part of this prospectus
supplement or the accompanying
prospectus.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div id="pn" style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">S-<font style="font-family: Times New Roman; font-size: 13px">7<br>
</font></font></div>
</div>
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<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_THE_OFFERING">
<!--anchor--></a><a name="_Ref87442119">
<!--anchor--></a>THE OFFERING</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
The following is a brief summary of some of the terms of the
offering and is qualified in its entirety by reference to the more
detailed information appearing elsewhere in this prospectus
supplement and the accompanying prospectus. For a more complete
description of the terms of the Shares, see the &#x201C;<a href="#_DESCRIPTION_OF_SECURITIES"><font style="text-decoration: underline; color: #0000FF">Description of the
Securities We Are Offering</font></a>&#x201D; section in this
prospectus supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Issuer</font></div>
</td>
<td rowspan="1" style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:top;width:50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">PEDEVCO
Corp.</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Stock Offered</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Shares
of our common stock having an aggregate offering price of up to
$3,600,000 (the &#x201C;Shares&#x201D;).</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Manner of Offering</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;At
the market offering&#x201D; that may be made from time to time
through or to, Roth Capital Partners, as sales agent or principal.
See &#x201C;<font><a href="#PLAN_OF_DISTRIBUTION_S">Plan of Distribution</a></font>&#x201D; on
page S-18.</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Stock to Be Outstanding After This Offering<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Up to
87,000,900 shares, assuming sales of 2,790,697 shares of our common
stock in this offering at an offering price at a price of $1.29 per
share, which was the closing price of our common stock on the NYSE
American on November 16, 2021. The actual number of shares issued
will vary depending on the sales price under this
offering.</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
NYSE Symbol</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;PED&#x201D;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Use of Proceeds</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
there is no minimum offering amount required as a condition to
close this offering, the actual public offering amount, commissions
to Roth Capital Partners and proceeds to us, if any, are not
determinable at this time. There can be no assurance that we will
sell any Shares under the Sales Agreement. We intend to use the net
proceeds, if any, from this offering for working capital and
general corporate purposes and capital expenditures. We may also
use a portion of the net proceeds to acquire or invest in
complementary businesses or products; however, we have no current
commitments or obligations to do so. Pending such use, we may
invest the net proceeds in short-term interest-bearing accounts,
securities or similar investments. See &#x201C;<a href="#USE_OF_PROCEEDS_S"><font style="color: #0000ff">Use of
Proceeds</font></a>.&#x201D; on page S-17.</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;Risk Factors</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">An
investment in the Shares involves significant risks. Please refer
to &#x201C;<a href="#_RISK_FACTORS_2"><font style="color: #0000ff">Risk Factors</font></a>&#x201D; beginning on page
S-9 and other information included or incorporated by reference in
this prospectus supplement and the accompanying prospectus for a
discussion of factors you should carefully consider before
investing in the Shares.</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:top;width:48%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:top;width:48%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Transfer Agent and Registrar</font></div>
</td>
<td style="vertical-align:top;width:2%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:top;width:50%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
transfer agent and registrar for our common stock is American Stock
Transfer &amp; Trust Company, LLC.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 192px; margin-right: 0px; text-indent: -192px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 70%; vertical-align: top">
(1)</font> The number of shares of common stock outstanding after
the offering is based on 84,210,203 shares of our common stock
outstanding as of November 17, 2021 and the sale of 2,790,697
shares of our common stock at an assumed offering price of $1.29
per share, the last reported sale price of our common stock on the
NYSE American on November 16, 2021, and excludes the
following:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;
1,278,436 shares of common stock issuable upon the exercise of
options outstanding at a weighted-average exercise price of $1.70
per share; and<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;
8,000,000 shares of common stock reserved for future issuance under
our equity incentive plans, as well as any automatic increases in
the number of shares of common stock reserved for future issuance
under the plans.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as otherwise indicated, all information in this prospectus assumes
no exercise of outstanding options.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-8<br></font></div>
</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_RISK_FACTORS_2">
<!--anchor--></a>RISK FACTORS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Before making an investment decision, you should
consider the &#x201C;<a href="#_RISK_FACTORS_2"><font style="text-decoration: underline;">Risk Factors</font></a>&#x201D;</font>
<font style="color: #000000">below</font><font style="color: #000000; background-color: #FFFFFF">, in the section
entitled</font> <font style="color: #000000">&#x201C;</font>Risk
Factors<font style="color: #000000">&#x201D;</font> <font style="color: #000000; background-color: #FFFFFF">contained under Item 1A
of Part I of our most recent annual report on Form 10-K, and under
&#x201C;</font><font style="text-decoration: underline; background-color: rgb(255, 255, 255);">Risk
Factors</font><font style="color: #000000; background-color: #FFFFFF">&#x201D; under Item 1A
of Part II of our subsequent quarterly reports on Form 10-Q, as the
same may be amended, supplemented or superseded from time to time
by our subsequent filings and reports under the Securities Act or
the Exchange Act, each of which are incorporated by reference in
this prospectus supplement. For more information, see</font>
<font style="color: #000000">&#x201C;<a href="#_INFORMATION_INCORPORATED_BY"><font style="text-decoration: underline;">Incorporation of Certain Documents by
Reference</font></a>&#x201D; and &#x201C;<a href="#_WHERE_YOU_CAN_2"><font style="text-decoration: underline;">Where
You Can Find More Information</font></a>&#x201D;,
below.</font><font style="color: #000000; background-color: #FFFFFF">&#xA0;</font><font style="color: #000000">The
market or trading price of our securities could decline due to any
of these risks. In addition, please read &#x201C;<a href="#_CAUTIONARY_NOTE_REGARDING"><font style="text-decoration: underline;">Cautionary Note Regarding</font>
<font style="text-decoration: underline; background-color: rgb(255, 255, 255);">
Forward-Looking Statements</font></a>&#x201D; in this prospectus
supplement, where we describe additional uncertainties associated
with our business and the forward-looking statements included or
incorporated by reference in this prospectus
supplement.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
securities offered herein are highly speculative and should only be
purchased by persons who can afford to lose their entire investment
in us. You should carefully consider the following risk factors and
the aforementioned risk factors that are incorporated herein by
reference and other information in this prospectus supplement
before deciding to become a holder of our common stock. The risks
and uncertainties described in these incorporated documents and
described below are not the only risks and uncertainties that we
face. Additional risks and uncertainties not presently known to us
may also impair our business operations. If any of these risks
actually occur, our business and financial results could be
negatively affected to a significant extent. In that event, the
trading price of our common stock could decline, and you may lose
all or part of your investment in our common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">&#xA0;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
securities are subject to the following risk factors:</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We currently have a sporadic and volatile market for our common
stock, and the market for our common stock is and may remain
sporadic and volatile in the future.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">We currently have a
highly sporadic and volatile market for our common stock, which
market is anticipated to remain sporadic and volatile in the
future.</font><font style="color: #000000">&#xA0;Factors that could
affect our stock price or result in fluctuations in the market
price or trading volume of our common stock
include:</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
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<tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">our
actual or anticipated operating and financial performance and
drilling locations, including reserves estimates;</font></div>
</td>
</tr><tr>
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</td>
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</td>
<td style="vertical-align: middle; width: 92%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">quarterly
variations in the rate of growth of our financial indicators, such
as net income per share, net income and cash flows, or those of
companies that are perceived to be similar to us;</font></div>
</td>
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</td>
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</td>
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</td>
</tr><tr>
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</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">changes
in revenue, cash flows or earnings estimates or publication of
reports by equity research analysts;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<tr>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">speculation
in the press or investment community;</font></div>
</td>
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<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">public
reaction to our press releases, announcements and filings with the
SEC;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">sales
of our common stock by us or other stockholders, or the perception
that such sales may occur;</font></div>
</td>
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<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
limited amount of our freely tradable common stock available in the
public marketplace;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">general
financial market conditions and oil and natural gas industry market
conditions, including fluctuations in commodity
prices;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
realization of any of the risk factors described herein and/or
incorporated by reference herein;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
<td style="vertical-align: middle; width: 92%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
recruitment or departure of key personnel;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">commencement
of, or involvement in, litigation;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
prices of oil and natural gas;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
success of our exploration and development operations, and the
marketing of any oil and natural gas we produce;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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</td>
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</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">changes
in market valuations of companies similar to ours; and</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 7%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 92%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">domestic
and international economic, health, legal and regulatory factors
unrelated to our performance.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">Our common stock is
listed on the NYSE American under the symbol
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">PED</font><font style="color: #000000; background-color: #FFFFFF">.&#x201D;
Our stock price may be impacted by factors that are unrelated or
disproportionate to our operating performance.</font><font style="color: #000000">&#xA0;The stock markets in general have
experienced extreme volatility that has often been unrelated to the
operating performance of particular companies. These broad market
fluctuations may adversely affect the trading price of our common
stock. Additionally,&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">general economic,
political and market conditions, such as recessions, interest rates
or international currency fluctuations may adversely affect the
market price of our common stock. Due to the limited volume of our
shares which trade, we believe that our stock prices (bid, ask and
closing prices)&#xA0;may not be related to our actual value, and
not reflect the actual value of our common stock. Stockholders and
potential investors in our common stock should exercise caution
before making an investment in us.</font></font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
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<div id="ftr">
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</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additionally,
as a result of the potential illiquidity and sporadic trading of
our common stock, investors may not be interested in owning our
common stock because of the inability to acquire or sell a
substantial block of our common stock at one time. This may have an
adverse effect on the market price of our common stock. In
addition, a stockholder may not be able to borrow funds using our
common stock as collateral because lenders may be unwilling to
accept the pledge of securities having such a limited market. We
cannot assure you that an active trading market for our common
stock will develop or, if one develops, be sustained.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
An active and sustained trading market for our common stock may not
develop in the future.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
common stock currently trades on the NYSE American, although our
common stock&#x2019;s trading volume has been low from time to time
and trading in our common stock has historically been sporadic.
Liquid and active trading markets usually result in less price
volatility and more efficiency in carrying out investors&#x2019;
purchase and sale orders. However, our common stock may continue to
have a sporadic trading volume, and investors may not be interested
in owning our common stock because of the inability to acquire or
sell a substantial block of our common stock at one time. This
could have an adverse effect on the market price of our common
stock. In addition, a stockholder may not be able to borrow funds
using our common stock as collateral because lenders may be
unwilling to accept the pledge of securities having such a limited
market. We cannot assure you that an active trading market for our
common stock will develop or, if one develops, be
sustained.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We have a limited operating history and expect to continue to incur
losses for an indeterminable period of time.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
have a limited operating history and are engaged in the initial
stages of exploration, development and exploitation of our
leasehold acreage and will continue to be so until commencement of
substantial production from our oil and natural gas properties,
which will depend upon successful drilling results, additional and
timely capital funding, and access to suitable infrastructure.
Companies in their initial stages of development face substantial
business risks and may suffer significant losses. We have generated
substantial net losses and negative cash flows from operating
activities in the past and expect to continue to incur substantial
net losses as we continue our drilling program. In considering an
investment in our common stock, you should consider that there is
only limited historical and financial operating information
available upon which to base your evaluation of our
performance.&#xA0;We have incurred&#xA0;net&#xA0;losses
of&#xA0;$128,108,000 from the date of inception (February 9,
2011)&#xA0;through September 30, 2021. Additionally, we are
dependent on obtaining additional debt and/or equity financing to
roll-out and scale our planned principal business operations.
Management&#x2019;s plans in regard to these matters consist
principally of seeking additional debt and/or equity financing
combined with expected cash flows from current oil and gas assets
held and additional oil and gas assets that we may acquire. Our
efforts may not be successful, and funds may not be available on
favorable terms, if at all.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
face challenges and uncertainties in financial planning as a result
of the unavailability of historical data and uncertainties
regarding the nature, scope and results of our future activities.
New companies must develop successful business relationships,
establish operating procedures, hire staff, install management
information and other systems, establish facilities and obtain
licenses, as well as take other measures necessary to conduct their
intended business activities. We may not be successful in
implementing our business strategies or in completing the
development of the infrastructure necessary to conduct our business
as planned. In the event that one or more of our drilling programs
is not completed or is delayed or terminated, our operating results
will be adversely affected and our operations will differ
materially from the activities described in, and incorporated by
reference in, this prospectus supplement. As a result of industry
factors or factors relating specifically to us, we may have to
change our methods of conducting business, which may cause a
material adverse effect on our results of operations and financial
condition. The uncertainty and risks described in, and incorporated
by reference in, this prospectus supplement, may impede our ability
to economically find, develop, exploit, and acquire oil and natural
gas reserves. As a result, we may not be able to achieve or sustain
profitability or positive cash flows provided by our operating
activities in the future.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic; color: #000000">You may
experience immediate and substantial dilution</font><font style="color: #000000">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The offering price per share in this offering may
exceed the net tangible book value per share of our common stock.
Assuming that an aggregate of 2,790,697 shares of our common stock
are sold at a price of $1.29 per share pursuant to this prospectus,
which was the last reported sales price of our common stock on the
NYSE American on November 16, 2021, for aggregate net proceeds of
$3.4 million after deducting commissions and estimated aggregate
offering expenses payable by us, you would experience immediate
dilution of $(0.19) per share, representing a difference between
our pro forma as adjusted net tangible book value per share as of
September 30, 2021 after giving effect to this offering and the
assumed offering price. The exercise of outstanding stock options
may result in further dilution of your investment. See
&#x201C;<a href="#_DILUTION"><font style="text-decoration: underline;">Dilution</font></a>&#x201D; below for
a more detailed discussion of the dilution you will incur if you
purchase our common stock in the offering.</font><font style="font-size: 13px">&#xA0;</font><font style="color: #000000">Because
the sales of the shares offered hereby will be made directly into
the market or in negotiated transactions, the prices at which we
sell these shares will vary and these variations may be
significant. Purchasers of the shares we sell, as well as our
existing stockholders, will experience significant dilution if we
sell shares at prices significantly below the price at which they
invested.</font></font></font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Management will have broad discretion as to the use of the proceeds
from this offering, and may not use the proceeds
effectively.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
management will have broad discretion in the application of the net
proceeds from this offering and could spend the proceeds in ways
that may not improve our results of operations or enhance the value
of our common stock. Our failure to apply these funds effectively
could have a material adverse effect on our business and cause the
price of our common stock to decline.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
It is not possible to predict the actual number of shares we will
sell under the sales agreement, or the gross proceeds resulting
from those sales.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Subject
to certain limitations in the Sales Agreement and compliance with
applicable law, we have the discretion to deliver a placement
notice to the Sales Agent at any time throughout the term of the
Sales Agreement. The number of shares that are sold through the
Sales Agent after delivering a placement notice will fluctuate
based on a number of factors, including the market price of the
common stock during the sales period, the limits we set with the
Sales Agent in any applicable placement notice, and the demand for
our common stock during the sales period. Because the price per
share of each share sold will fluctuate during the sales period, it
is not currently possible to predict the number of shares that we
will sell or the gross proceeds we will receive in connection with
those sales.</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-10<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The common stock offered hereby will be sold in &#x201C;at the
market offerings&#x201D;, and investors who buy shares at different
times will likely pay different prices.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Investors
who purchase shares in this offering at different times will likely
pay different prices, and so may experience different levels of
dilution and different outcomes in their investment results. We
will have discretion, subject to market demand, to vary the timing,
prices, and numbers of shares sold in this offering. In addition,
there is no minimum or maximum sales price for shares to be sold in
this offering. Investors may experience a decline in the value of
the shares they purchase in this offering as a result of sales made
at prices lower than the prices they paid.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
There may be future sales of our common stock, which could
adversely affect the market price of our common stock and dilute a
shareholder&#x2019;s ownership of common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The exercise of any options granted to executive
officers and other employees under our equity compensation plans,
and other issuances of our common stock could have an adverse
effect on the market price of the shares of our common stock. Other
than the restrictions set forth in the section titled
&#x201C;<a href="#PLAN_OF_DISTRIBUTION_S"><font style="text-decoration: underline;">Plan of
Distribution</font></a></font><font style="text-decoration: underline; color: #000000">,</font><font style="color: #000000">&#x201D; we are not restricted from issuing
additional shares of common stock, including any securities that
are convertible into or exchangeable for, or that represent the
right to receive shares of common stock, provided that we are
subject to the requirements of the NYSE American (which generally
requires shareholder approval for any transactions which would
result in the issuance of more than 20% of our then outstanding
shares of common stock or voting rights representing over 20% of
our then outstanding shares of stock). Sales of a substantial
number of shares of our common stock in the public market or the
perception that such sales might occur could materially adversely
affect the market price of the shares of our common stock. Because
our decision to issue securities in any future offering will depend
on market conditions and other factors beyond our control, we
cannot predict or estimate the amount, timing or nature of our
future offerings. Accordingly, our shareholders bear the risk that
our future offerings will reduce the market price of our common
stock and dilute their stock holdings in us.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
You may experience future dilution as a result of future equity
offerings.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
order to raise additional capital, we may in the future offer
additional shares of our common stock or other securities
convertible into or exchangeable for our common stock. We cannot
assure you that we will be able to sell shares or other securities
in any other offering at a price per share that is equal to or
greater than the price per share paid by investors in this
offering, and investors purchasing our shares or other securities
in the future could have rights superior to existing shareholders.
The price per share at which we sell additional shares of our
common stock or other securities convertible into or exchangeable
for our common stock in future transactions may be higher or lower
than the price per share in this offering.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
We do not intend to pay dividends on our common stock for the
foreseeable future.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
have never paid cash dividends on our capital stock and do not
anticipate paying any cash dividends on our common stock for the
foreseeable future. Investors should not rely on an investment in
us if they require income generated from dividends paid on our
capital stock. Because we do not intend to pay dividends on our
common stock, any income derived from our common stock would only
come from a rise in the market price of our common stock, which is
uncertain and unpredictable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Future sales of our common stock could cause our stock price to
decline.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">If our shareholders sell substantial amounts of
our common stock in the public market, the market price of our
common stock could decrease significantly. The perception in the
public market that our shareholders might sell shares of our common
stock could also depress the market price of our common stock. Up
to $100,000,000 in total aggregate value of securities have been
registered by us on a &#x201C;</font><font style="text-decoration: underline; color: #000000">shelf</font><font style="color: #000000">&#x201D;
registration statement on Form S-3 (File No. 333-250904) that we
filed with the Securities and Exchange Commission on November 23,
2020, and which was declared effective on December 2, 2020. To date
we have sold $15.95 million of securities under the
&#x201C;</font><font style="text-decoration: underline; color: #000000">shelf</font><font style="color: #000000">&#x201D;
registration statement, when not including securities proposed to
be sold in this offering, leaving an aggregate of approximately
$84.05 million in securities which will be eligible for sale in the
public markets from time to time, not including the securities
offered pursuant to the offering described in this prospectus, when
sold and issued by us, subject to the requirements of Form S-3,
which limits us, until such time, if ever, as our public float
exceeds $75 million, from selling securities in a public primary
offering under Form S-3 with a value exceeding more than one-third
of the aggregate market value of the common stock held by
non-affiliates of the Company every twelve months. Additionally, if
our existing shareholders sell, or indicate an intention to sell,
substantial amounts of our common stock in the public market, the
trading price of our common stock could decline significantly. The
market price for shares of our common stock may drop significantly
when such securities are sold in the public markets. A decline in
the price of shares of our common stock might impede our ability to
raise capital through the issuance of additional shares of our
common stock or other equity securities.</font></font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
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</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">&#xA0;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-family: Times New Roman; font-size: 13px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px">
&#xA0;&#xA0;&#xA0; &#xA0;&#xA0;&#xA0; &#xA0;&#xA0;&#xA0;
&#xA0;&#xA0;&#xA0; D</font><font style="font-weight: bold; font-style: italic; color: #000000">eclines in
oil and, to a lesser extent, NGL and natural gas prices, have in
the past, and will continue in the future to, adversely affect our
business, financial condition or results of operations and our
ability to meet our capital expenditure obligations or targets and
financial commitments.</font></font>&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The price we receive for our oil and, to a lesser
extent, natural gas and NGLs, heavily influences our revenue,
profitability, cash flows, liquidity, access to capital, present
value and quality of our reserves, the nature and scale of our
operations, and future rate of growth. Oil, NGL, and natural gas
are commodities and, therefore, their prices are subject to wide
fluctuations in response to relatively minor changes in supply and
demand. In recent years, the markets for oil and natural gas have
been volatile. These markets will likely continue to be volatile in
the future. Further, oil prices and natural gas prices do not
necessarily fluctuate in direct relation to each
other.&#xA0;Because approximately 84% of our estimated proved
reserves as of December&#xA0;31, 2020, were oil, our financial
results are more sensitive to movements in oil prices. The price of
crude oil has experienced significant volatility over the last
several years, with the price per barrel of West Texas Intermediate
(&#x201C;</font><font style="text-decoration: underline; color: #000000">WTI</font><font style="color: #000000">&#x201D;)&#xA0;crude rising from a low of $27 in
February 2016 to a high of $76 in October 2018, then, in 2020,
dropping below $20 per barrel due in part to reduced global demand
stemming from the recent global COVID-19 outbreak, and most
recently climbing back around $75 a barrel. A prolonged period of
low market prices for oil and natural gas, or further declines in
the market prices for oil and natural gas, will likely result in
capital expenditures being further curtailed and will adversely
affect our business, financial condition and liquidity and our
ability to meet obligations, targets or financial commitments and
could ultimately lead to restructuring or filing for bankruptcy,
which would have a material adverse effect on our stock price and
indebtedness. Additionally, lower oil and natural gas prices have,
and may in the future, cause, a decline in our stock price. During
the year ended December&#xA0;31, 2019, the daily NYMEX WTI oil spot
price ranged from a high of $66.24 per Bbl to a low of $46.31 per
Bbl and the NYMEX natural gas Henry Hub spot price ranged from a
high of $4.25 per MMBtu to a low of $1.75 per MMBtu.&#xA0;During
the year ended December 31, 2020, the daily NYMEX WTI oil spot
price ranged from a high of $63.27 per Bbl to a low of ($36.98) per
Bbl and the NYMEX natural gas Henry Hub spot price ranged from a
high of $3.14 per MMBtu to a low of $1.33 per MMBtu. During the
nine months ended September 30, 2021, the daily NYMEX WTI oil spot
price ranged from a high of $75.37 per Bbl to a low of $47.47 per
Bbl and the NYMEX natural gas Henry Hub spot price ranged from a
high of $23.86 per MMBtu to a low of $2.43 per MMBtu. From October
1, 2021, to November 16, 2021, the daily NYMEX WTI oil spot price
ranged from a high of $85.64 per Bbl to a low of $76.01 per Bbl and
the NYMEX natural gas Henry Hub spot price ranged from a high of
$6.37 per MMBtu to a low of $4.56 per MMBtu.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Our success is dependent on the prices of oil, NGLs, and natural
gas. Low oil or natural gas prices and the substantial volatility
in these prices have adversely affected, and are expected to
continue to adversely affect, our business, financial condition and
results of operations, and our ability to meet our capital
expenditure requirements and financial obligations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
prices we receive for our oil, NGLs and natural gas heavily
influence our revenue, profitability, cash flow available for
capital expenditures, access to capital, and future rate of growth.
Oil, NGLs, and natural gas are commodities and, therefore, their
prices are subject to wide fluctuations in response to relatively
minor changes in supply and demand. Historically, the commodities
market has been volatile. For example, the price of crude oil has
experienced significant volatility over the last several years,
with the price per barrel of WTI crude rising from a low of $27 in
February 2016 to a high of $76 in October 2018, then dropping below
$20 per barrel in April 2020 due in part to reduced global demand
stemming from the recent global COVID-19 outbreak, before
recovering to around $75-$80 per barrel more recently. Prices for
natural gas and NGLs experienced declines of similar magnitude. An
extended period of continued lower oil prices, or additional price
declines, will have further adverse effects on us. The prices we
receive for our production, and the levels of its production, will
continue to depend on numerous factors, including the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
domestic and foreign supply of oil, NGLs and natural
gas;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
domestic and foreign demand for oil, NGLs and natural
gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
prices and availability of competitors&#x2019; supplies of oil, NGLs
and natural gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
actions of the Organization of Petroleum Exporting Countries, or
OPEC, and state-controlled oil companies relating to oil price and
production controls;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
price and quantity of foreign imports of oil, NGLs and natural
gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
impact of U.S. dollar exchange rates on oil, NGLs, and natural gas
prices;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;domestic
and foreign governmental regulations and taxes;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;speculative
trading of oil, NGLs, and natural gas futures
contracts;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;localized
supply and demand fundamentals, including the availability,
proximity, and capacity of gathering and transportation systems for
natural gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
availability of refining capacity;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
prices and availability of alternative fuel sources;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
threat, or perceived threat, or results, of viral pandemics, for
example, as experienced with the COVID-19 pandemic in 2020 and
2021;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;weather
conditions and natural disasters;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-12<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;political
conditions in or affecting oil, NGLs, and natural gas producing
regions, including the Middle East and South America;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
continued threat of terrorism and the impact of military action and
civil unrest;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;public
pressure on, and legislative and regulatory interest within,
federal, state and local governments to stop, significantly limit,
or regulate hydraulic fracturing activities;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
level of global oil, NGL, and natural gas inventories and
exploration and production activity;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;authorization
of exports from the United States of liquefied natural
gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;the
impact of energy conservation efforts;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;technological
advances affecting energy consumption; and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;overall
worldwide economic conditions.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Declines
in oil, NGL&#xA0;or natural gas prices have not, and will not, only
reduce our revenue, but have and will reduce the amount of oil,
NGL&#xA0;and natural gas that we can produce economically. Should
natural gas, NGL or oil prices decline from current levels and
remain there for an extended period of time, we may choose to
shut-in our operated wells (similar to our shut-in of our operated
wells in 2020), delay some or all of our exploration and
development plans for our prospects, or to cease exploration or
development activities on certain prospects due to the anticipated
unfavorable economics from such activities, and, as a result, we
may have to make substantial downward adjustments to our estimated
proved reserves, each of which would have a material adverse effect
on our business, financial condition and results of
operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-weight: bold; color: #000000">Our business and
operations have been adversely affected by, and are expected to
continue to be adversely affected by, the recent&#xA0;COVID-19
outbreak, and may be adversely affected by other similar
outbreaks</font><font style="color: #000000">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">As
a result of the recent COVID-19&#xA0;outbreak or other adverse
public health developments, including voluntary and mandatory
quarantines, travel restrictions, and other restrictions, our
operations, and those of our subcontractors, customers, and
suppliers, have and are anticipated to continue to experience
delays or disruptions and temporary suspensions of operations. In
addition, our financial condition and results of operations have
been and are likely to continue to be adversely affected&#xA0;by
the COVID-19 outbreak.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
&#xA0;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
The timeline and potential magnitude of
the&#xA0;COVID-19&#xA0;outbreak are currently unknown.&#xA0; The
continuation or amplification of this virus could continue to more
broadly affect the United States and global economy, including its
business and operations, and the demand for oil and gas.&#xA0; For
example, the outbreak of coronavirus has resulted in a widespread
health crisis that will adversely affect the economies and
financial markets of many countries, resulting in an economic
downturn that will affect our operating results. Other contagious
diseases in the human population could have similar adverse
effects. In addition, the effects of COVID-19 and concerns
regarding its global spread have negatively impacted the domestic
and international demand for crude oil and natural gas, which has
contributed to price volatility, impacted the price we receive for
oil and natural gas, and materially and has materially and
adversely affected the demand for and marketability of our
production, which production we temporarily shut-in from mid-April
2020 through early June 2020, and may adversely affect the same in
the future. As the potential impact from COVID-19 is difficult to
predict, the extent to which it will negatively affect our
operating results, or the duration of any potential business
disruption is uncertain. The magnitude and duration of any impact
will depend on future developments and new information that may
emerge regarding the severity and duration of COVID-19 and the
actions taken by authorities to contain it or treat its impact,
including the efficiency of recent vaccines, the ability of the
government to roll such vaccines out to the general public, and the
willingness of individuals to obtain such vaccines, all of which
are beyond our control. These potential impacts, while uncertain,
have already negatively affected our results of operations for the
first three quarters of 2021, and may have a negative impact on
multiple future quarters&#x2019; results as well.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Declining general economic, business or industry conditions have,
and will continue to have, a material adverse effect on our results
of operations, liquidity, and financial condition, and are expected
to continue having a material adverse effect for the foreseeable
future.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Concerns
over global economic conditions, the duration and effects of
COVID-19 and the results thereof, energy costs, geopolitical
issues, inflation, and the availability and cost of credit have
contributed to increased economic uncertainty and diminished
expectations for the global economy. These factors, combined with
volatile prices of oil and natural gas, declining business and
consumer confidence and increased unemployment, have precipitated
an economic slowdown and a recession, which could expand to a
global depression. Concerns about global economic growth have had a
significant adverse impact on global financial markets and
commodity prices and are expected to continuing having a material
adverse effect for the foreseeable future. If the economic climate
in the United States or abroad continues to deteriorate, demand for
petroleum products could diminish, which could further impact the
price at which we can sell our oil, natural gas and natural gas
liquids, affect the ability of our vendors, suppliers and customers
to continue operations, and ultimately adversely impact our results
of operations, liquidity and financial condition to a greater
extent that it has already.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-13<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The marketability of our production is dependent upon oil and
natural gas gathering, transportation, and storage facilities owned
and operated by third parties, and the unavailability of
satisfactory oil and natural gas transportation arrangements have
had a material adverse effect on our revenue.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
unavailability of satisfactory oil and natural gas transportation
arrangements has hindered our access to oil and natural gas markets
and has delayed production from our wells. The availability of a
ready market for our oil and natural gas production depends on a
number of factors, including the demand for, and supply of, oil and
natural gas and the proximity of reserves to pipelines, terminal
facilities, and storage facilities. Our ability to market our
production depends in substantial part on the availability and
capacity of gathering systems, pipelines, processing facilities,
and storage facilities owned and operated by third parties. Our
failure to obtain these services on acceptable terms could
materially harm our business. Due to the current lack of demand,
low prices, and high transportation costs, we have elected to
shut-in all of our operated wells, resulting in a nearly complete
loss of production revenue. Furthermore, we are obligated to pay
shut-in royalties to certain mineral interest owners in order to
maintain our leases with respect to certain shut-in wells. We do
not expect to purchase firm transportation capacity on third-party
facilities. Therefore, we expect the transportation of our
production to be generally interruptible in nature and lower in
priority to those having firm transportation
arrangements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
disruption of third-party facilities due to maintenance and/or
weather could negatively impact our ability to market and deliver
our products. The third parties&#x2019; control when or if such
facilities are restored after disruption, and what prices will be
charged for products. Federal and state regulation of oil and
natural gas production and transportation, tax and energy policies,
changes in supply and demand, pipeline pressures, damage to or
destruction of pipelines, and general economic conditions could
adversely affect our ability to produce, gather and transport oil
and natural gas.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
An increase in the differential between the NYMEX or other
benchmark prices of oil and natural gas and the wellhead price we
receive for our production has adversely affected our business,
financial condition, and results of operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The prices that we will receive for our oil and
natural gas production sometimes may reflect a discount to the
relevant benchmark prices, such as the New York Mercantile Exchange
(&#x201C;</font><font style="text-decoration: underline; color: #000000">NYMEX</font><font style="color: #000000">&#x201D;),
that are used for calculating hedge positions. The difference
between the benchmark price and the prices we receive is called a
differential. Increases in the differential between the benchmark
prices for oil and natural gas and the wellhead price we receive
has recently adversely affected and is anticipated to continue to
adversely affect, our business, financial condition, and results of
operations. We do not have, and may not have in the future, any
derivative contracts or hedging covering the amount of the basis
differentials we experience in respect of our production. As such,
we will be exposed to any increase in such
differentials.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Concerns
over global economic conditions, the duration and effects of
COVID-19 and the results thereof, energy costs, geopolitical
issues, inflation, and the availability and cost of credit have
contributed to increased economic uncertainty and diminished
expectations for the global economy. These factors, combined with
volatile prices of oil and natural gas, declining business and
consumer confidence and increased unemployment, have precipitated
an economic slowdown and a recession, which could expand to a
global depression. Concerns about global economic growth have had a
significant adverse impact on global financial markets and
commodity prices and are expected to continuing having a material
adverse effect for the foreseeable future. If the economic climate
in the United States or abroad continues to deteriorate, demand for
petroleum products could diminish, which could further impact the
price at which we can sell our oil, natural gas and natural gas
liquids, affect the ability of our vendors, suppliers and customers
to continue operations, and ultimately adversely impact our results
of operations, liquidity and financial condition to a greater
extent that it has already.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Downturns and volatility in global economies and commodity and
credit markets have materially adversely affected our business,
results of operations, and financial condition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
results of operations are materially adversely affected by the
conditions of the global economies and the credit, commodities, and
stock markets. Among other things, we have recently been adversely
impacted, and anticipate to continue to be adversely impacted, due
to a global reduction in consumer demand for oil and gas, and
consumer lack of access to sufficient capital to continue to
operate their businesses or to operate them at prior levels. In
addition, a decline in consumer confidence or changing patterns in
the availability and use of disposable income by consumers can
negatively affect the demand for oil and gas and as a result our
results of operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
New or amended environmental legislation or regulatory initiatives
could result in increased costs, additional operating restrictions,
or delays, or have other adverse effects on us.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
The environmental laws and regulations to which we are subject
change frequently, often to become more burdensome and/or to
increase the risk that we will be subject to significant
liabilities. New or amended federal, state, or local laws or
implementing regulations or orders imposing new environmental
obligations on, or otherwise limiting, our operations could make it
more difficult and more expensive to complete oil and natural gas
wells, increase our costs of compliance and doing business, delay
or prevent the development of resources (especially from shale
formations that are not commercial without the use of hydraulic
fracturing), or alter the demand for and consumption of our
products. Any such outcome could have a material and adverse impact
on our cash flows and results of operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
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</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">For example, in 2014,
2016, and 2018, opponents of hydraulic fracturing sought statewide
ballot initiatives in Colorado that would have restricted oil and
gas development in Colorado and could have had materially adverse
impacts on us. One of the proposed initiatives would have made the
vast majority of the surface area of the state ineligible for
drilling, including substantially all of our planned future
drilling locations. By further example, in April 2019, Colorado
Senate Bill 19-181 (the &#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">Bill</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)&#xA0;was
passed into law, which prioritizes the protection of public safety,
health, welfare, and the environment in the regulation of the oil
and gas industry by modifying the State&#x2019;s oil and gas
statutes and clarifying, reinforcing, and establishing local
governments&#x2019; regulatory authority over the surface impacts of
oil and gas development in Colorado. This Bill, among other things,
gives more power to local government entities in making land-use
decisions about oil and gas development and regulation, and directs
the Colorado Oil &amp; Gas Conservation Commission
(&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">COGCC</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)&#xA0;to
promulgate rules to ensure, among other things, proper wellbore
integrity, allow public disclosure of flowline information, and
evaluate when inactive or shut-in wells must be inspected before
being put into production or used for injection. In addition, the
Bill requires that owners of more than 50% of the mineral interests
in lands to be pooled must have joined in the application for a
pooling order and that the application must include proof that the
applicant received approval for the facilities from the affected
local government or that the affected local government does not
regulate such facilities. In addition, the Bill provides that an
operator cannot use the surface owned by a nonconsenting owner
without permission from the nonconsenting owner and increases
nonconsenting owners&#x2019; royalty rates during a well&#x2019;s
pay-back period from 12.5% to 13.0%.</font><font style="color: #000000">&#xA0;</font><font style="color: #212529">Pursuant
to the Bill,</font><font style="color: #000000">&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">the COGCC conducted a
series of rulemaking hearings during 2020 which resulted in updated
regulatory and permitting requirements, including siting
requirements.</font><font style="color: #EE2724; background-color: #FFFFFF">&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">The
COGCC commissioners determined that locations with residential or
high occupancy building units within 2,000 feet would be subject to
additional siting requirements, but also supported
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">off
ramps</font><font style="color: #000000; background-color: #FFFFFF">&#x201D; allowing oil
and gas operators to site their drill pads as close as 500 feet
from building units in certain circumstances.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">Similar to the Bill
described above, proposals are made from time to time to adopt new,
or amend existing, laws and regulations to address hydraulic
fracturing or climate change concerns through further regulation of
exploration and development activities.</font><font style="color: #000000">&#xA0;&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">We cannot predict the
nature, outcome, or effect on us of future regulatory initiatives,
but such initiatives could materially impact our results of
operations, production, reserves, and other aspects of our
business.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #212529">For example,</font><font style="color: #000000">&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">in 2019, the United
States Environmental Protection Agency (EPA) increased the state of
Colorado&#x2019;s non-attainment ozone classification for the Denver
Metro North Front Range Ozone Eight-Hour Non-Attainment
(&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">Denver
Metro/North Front Range NAA</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;) area from
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">moderate</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;
to &#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">serious</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;
under the 2008 national ambient air quality standard
(&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">NAAQS</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;).
This increase in non-attainment status to "</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">serious</font><font style="color: #000000; background-color: #FFFFFF">"
triggered significant additional obligations for the state under
the Clean Air Act (the &#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">CAA</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)
and resulted in Colorado adopting new and more stringent air
quality control requirements in December 2020 that are applicable
to our operations, with additional obligations for the state under
the CAA possible that could result in new and more stringent air
quality permitting and control requirements, which may in turn
result in significant costs and delays in obtaining necessary
permits applicable to our operations.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
In 2020, we temporarily shut-in all&#xA0;of our operated producing
wells in our Permian Basin Asset and D-J Basin Asset to preserve
our oil and gas reserves for production during a more favorable oil
price environment, and while we have resumed full production, we
may again shut-in some or all of its operated production, should
market conditions significantly deteriorate.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">As
a result of the COVID-19 outbreak, and the sharp decline in oil
prices which occurred in early 2020, partially as a result of the
decreased demand for oil caused by such outbreak and the actions
taken globally to stop the spread of such virus, in mid-April 2020,
we temporarily shut-in all of our operated producing wells in our
Permian Basin and D-J Basin to preserve our oil and gas reserves
for production during a more favorable oil price environment,
noting that most of our acreage is held by production with no
drilling obligations, which provides us with flexibility to hold
back on production and development during periods of low oil and
gas prices. Following partial recovery in oil prices, commencing in
early June 2020, we reactivated substantially all of our operated
wells in the Permian Basin and the D-J Basin that we shut-in in
mid-April 2020. We subsequently resumed full production. However,
we may again shut-in some or all of our production, should market
conditions deteriorate into the mid- to low-$20 per barrel realized
well head price range in the future. While our producing wells are
shut-in, we do not generate revenues from such wells, and need to
use cash on hand and funds we receive from borrowings and the sale
of equity in order to pay our operating expenses. A continued
period of low-priced oil may make it non-economical for us to
operate our wells, which would have a material adverse effect on
our operating results and the value of our assets. We cannot
estimate the future price of oil, and as such cannot estimate, when
we may again determine to begin producing oil at its operated
wells.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The Federal Government previously instituted a moratorium on new
oil and gas leases and permits on federal onshore and offshore
lands, which may have a material adverse effect on the Company and
its results of operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">On
January 20, 2021, the Acting U.S. Interior Secretary, instituted a
60-day moratorium on new oil and gas leases and permits on federal
onshore and offshore lands, which was subsequently extended
indefinitely. In June 2021, a federal judge issued an injunction
lifting the moratorium, provided that the federal government it is
appealing the injunction. A total of approximately 26% of the
Company&#x2019;s acreage in New Mexico and 1% of the Company&#x2019;s
acreage in Colorado are located on federal lands. It is currently
unclear whether the moratorium will be reinstated, or whether such
moratorium is the start of a change in federal policies regarding
the grant of oil and gas permits on federal lands. The moratorium
does not affect the Company, as the Company has no plans to drill
new wells on any leases held on federal lands; however, if such
prior moratorium was to become permanent, or the federal government
in the future were to grant less permits on federal lands, make
such permitting process more difficult, costly, or to institute
more stringent rules relating to such permitting process, it could
have a material adverse effect on the value of the Company&#x2019;s
leases and/or its ability to undertake oil and gas operations on
such the portion of its leases on federal lands.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-15<br></font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">Simon Kukes, our Chief Executive
Officer and a member of board of directors, beneficially
owns&#xA0;64.8% of our common stock, which gives him majority
voting control over stockholder matters and his interests may be
different from your interests; and as a result of such ownership,
we are a &#x201C;</font><font style="text-decoration: underline; color: #000000">controlled
company</font><font style="color: #000000">&#x201D; under applicable
NYSE American rules.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Simon
Kukes, our Chief Executive Officer and member of the board of
directors, through his individual ownership of the Company and
through his position as principal and sole owner of SK Energy LLC,
which beneficially owns approximately 61.5% of our issued and
outstanding common stock and Mr. Kukes, together with the ownership
of SK Energy, beneficially owns approximately 64.8% of our issued
and outstanding common stock. As such, Mr. Kukes can control the
outcome of all matters requiring a stockholder vote, including the
election of directors, the adoption of amendments to our
certificate of formation or bylaws and the approval of mergers and
other significant corporate transactions. Subject to any fiduciary
duties owed to the stockholders generally, while Mr. Kukes&#x2019;
interests may generally be aligned with the interests of our
stockholders, in some instances Mr. Kukes may have interests
different than the rest of our stockholders, including but not
limited to, future potential company financings in which SK Energy
may participate, or his leadership at the Company. Mr. Kukes&#x2019;
influence or control of&#xA0;our company as a stockholder may have
the effect of delaying or preventing a change of control
of&#xA0;our company and may adversely affect the voting and other
rights of other stockholders. Because Mr. Kukes controls the
stockholder vote, investors may find it difficult to replace Mr.
Kukes (and such persons as he may appoint from time to
time)&#xA0;as members of our management if they disagree with the
way our business is being operated. Additionally, the interests of
Mr. Kukes may differ from the interests of the other stockholders
and thus result in corporate decisions that are adverse to other
stockholders.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Because of Mr. Kukes&#x2019; ownership of the
Company, as discussed above, we are a &#x201C;</font><font style="text-decoration: underline; color: #000000">controlled
company</font><font style="color: #000000">&#x201D; under the rules
of the NYSE American. Under these rules, a company of which more
than 50% of the voting power is held by an individual, a group or
another company is a &#x201C;</font><font style="text-decoration: underline; color: #000000">controlled
company</font><font style="color: #000000">&#x201D; and, as such,
can elect to be exempt from certain corporate governance
requirements, including requirements that:</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: middle; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 85%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">a
majority of the Board of Directors consist of independent directors
(or 50% in the</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">case of
a smaller reporting company such as the Company);</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 85%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 85%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
board maintain a nominations committee with prescribed duties and a
written</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">charter;
and</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 85%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 85%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
board maintain a compensation committee with prescribed duties and
a written</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">charter
and comprised solely of independent directors.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">As a &#x201C;</font><font style="text-decoration: underline; color: #000000">controlled
company,</font><font style="color: #000000">&#x201D; we may elect to
rely on some or all of these exemptions, provided that we have to
date not taken advantage of any of these exemptions and do not
currently intend to take advantage of any of these exemptions
moving forward. Notwithstanding that, should the interests of Mr.
Kukes differ from those of other stockholders, the other
stockholders may not have the same protections afforded to
stockholders of companies that are subject to all of the NYSE
American corporate governance standards. Even if we do not avail
ourselves of these exemptions, our status as a controlled company
could make our common stock less attractive to some investors or
otherwise harm our stock price.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
We are subject to the Continued Listing Criteria of the NYSE
American and our failure to satisfy these criteria may result in
delisting of our common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Our common stock is currently listed on the NYSE
American. In order to maintain this listing, we must maintain
certain share prices, financial and share distribution targets,
including maintaining a minimum amount of stockholders&#x2019;
equity and a minimum number of public stockholders. In addition to
these objective standards, the NYSE American may delist the
securities of any issuer if, in its opinion, the issuer&#x2019;s
financial condition and/or operating results appear unsatisfactory;
if it appears that the extent of public distribution or the
aggregate market value of the security has become so reduced as to
make continued listing on the NYSE American inadvisable; if the
issuer sells or disposes of principal operating assets or ceases to
be an operating company; if an issuer fails to comply with the NYSE
American&#x2019;s listing requirements; if an issuer&#x2019;s common
stock sells at what the NYSE American considers a
&#x201C;</font><font style="text-decoration: underline; color: #000000">low selling
price</font><font style="color: #000000">&#x201D; (generally trading
below $0.20 per share for an extended period of time)&#xA0;and the
issuer fails to correct this via a reverse split of shares after
notification by the NYSE American (provided that issuers can also
be delisted if any shares of the issuer trade below $0.06 per
share); or if any other event occurs or any condition exists which
makes continued listing on the NYSE American, in its opinion,
inadvisable.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">If
the NYSE American delists our common stock, investors may face
material adverse consequences, including, but not limited to, a
lack of trading market for our securities, reduced liquidity,
decreased analyst coverage of our securities, and an inability for
us to obtain additional financing to fund our
operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-16<br></font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_Ref87442127"><!--anchor--></a><a name="USE_OF_PROCEEDS_S">U</a>SE OF
PROCEEDS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">The
amount of proceeds from this offering will depend upon the number
of shares of our common stock sold and the market price at which
they are sold. There can be no assurance that we will be able to
sell any Shares under or fully utilize the Sales Agreement with
Roth Capital Partners.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">We
currently intend to use the net proceeds from this offering, if
any, (i) to fund the Company&#x2019;s 2021 and 2022 Permian Basin
and D-J Basin asset development programs, provided that the 2022
development plan has not been finalized, (ii) to fund potential
acquisition opportunities, and (iii) for general corporate purposes
and working capital. We may also use all or a portion of the net
proceeds from this offering to fund possible investments in, or
acquisitions of, complementary businesses or assets, but we
currently have no agreements or commitments with respect to any
investment or acquisition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Notwithstanding the
above, the amounts and timing of our actual expenditures will
depend on numerous factors. We may find it necessary or advisable
to use portions of the net proceeds for other purposes, and we will
have broad discretion in the application and allocation of the net
proceeds from this offering. Pending the use of the net proceeds
from this offering as described above, we intend to invest the
proceeds in investment grade, interest-bearing
instruments.&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_DILUTION"><!--anchor--></a><a name="_Ref87442132"><!--anchor--></a></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
DILUTION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">If
you invest in our common stock in this offering, your interest will
be diluted immediately to the extent of the difference between the
offering price per share and the pro forma net tangible book value
per share of our common stock after this offering.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Our net tangible book value as of September 30,
2021, was $85.7 million, or $1.07 per share.
&#x201C;</font><font style="text-decoration: underline; color: #000000">Net tangible book
value</font><font style="color: #000000">&#x201D; is total assets
minus the sum of liabilities and intangible assets.
&#x201C;</font><font style="text-decoration: underline; color: #000000">Net tangible book
value per share</font><font style="color: #000000">&#x201D; is net
tangible book value divided by the total number of shares of common
stock outstanding.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Our pro forma net tangible book value as of
September 30, 2021, was $92.2 million, or $1.09 per share per
share. Pro forma net tangible book value per share represents the
amount of our total tangible assets as adjusted to take into
account net cash proceeds of approximately $6.5 million, from the
sale of 4,458,600 shares of common stock at an offering price per
share of $1.57 on October 6, 2021, in a registered direct offering
(the &#x201C;</font><font style="text-decoration: underline; color: #000000">October 2021
Offering</font><font style="color: #000000">&#x201D;)</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">
After giving effect to the assumed sale of 2,790,697 shares of
common stock pursuant to this prospectus supplement in this
offering, at an assumed offering price of $1.29 per share, the last
reported sales price of our common stock on the NYSE American on
November 16, 2021, and after deducting commissions and estimated
aggregate offering expenses payable by us, our pro forma as
adjusted net tangible book value as of September 30, 2021 would
have been approximately $95.6 million, or $1.10 per share of common
stock. This represents an immediate increase in net tangible book
value of $0.01 per share to our existing stockholders (compared to
pro forma net tangible book value) and an immediate dilution in net
tangible book value of $(0.19) per share to new investors. The
following table illustrates this per share
dilution:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Assumed
public offering price per share</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%; border-bottom: 4px double #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$</font></div>
</td>
<td style="vertical-align: bottom; width: 16%; border-bottom: 4px double #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.29<br>
</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Net
tangible book value per share as of September 30, 2021</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.07</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Increase
in net tangible book value per share attributable to the October
2021 Offering</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.02</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pro
forma net tangible book value per share as of September 30,
2021</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.09</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Increase&#xA0;in
pro forma net tangible book value per share of common stock
attributable to this Offering</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%; border-bottom: 4px double #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$</font></div>
</td>
<td style="vertical-align: bottom; width: 16%; border-bottom: 4px double #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.01<br>
</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pro
forma as adjusted net tangible book value per share of common stock
as of September 30, 2021 after giving effect to this
Offering</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%; border-bottom: 4px double #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$</font></div>
</td>
<td style="vertical-align: bottom; width: 16%; border-bottom: 4px double #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.10<br>
</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dilution
per share to investors participating in this Offering</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(0.19</font></div>
</td>
<td style="vertical-align: bottom; width: 1%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">&#xA0;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
information above is as of September 30, 2021 and excludes, as of
that date:</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 2%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 96%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,278,436
shares of common stock issuable upon the exercise of outstanding
options to purchase shares of common stock at a weighted-average
exercise price of $1.70 per share; and</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 96%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 2%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 96%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">shares
of our common stock that are reserved for equity awards that may be
granted under our equity incentive plans.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
table above assumes for illustrative purposes that an aggregate of
2,790,697 shares of our common stock are sold during the term of
the Sales Agreement with the Sales Agent at a price of $1.29 per
share, the last reported sales price of our common stock on the
NYSE American on November 16, 2021, for aggregate gross proceeds of
$3,600,000. The shares subject to the Sales Agreement may be sold
from time to time at various prices. An increase of $0.25 per share
in the price at which the shares are sold from the assumed offering
price of $1.29 per share shown in the table above, assuming all of
our common stock in the aggregate amount of $3,600,000 during the
term of the Sales Agreement is sold at that price, would have no
effect on our pro forma adjusted net tangible book value per share
after the offering, which would remain $1.10 per share, but would
increase the dilution in pro forma net tangible book value per
share to new investors in this offering to ($0.44) per share, after
deducting estimated offering commissions and offering expenses
payable by us. A decrease of $0.25 per share in the price at which
the shares are sold from the assumed offering price of $1.29 per
share shown in the table above, assuming all of our common stock in
the aggregate amount of $3,600,000 during the term of the Sales
Agreement is sold at that price, would decrease our pro forma
adjusted net tangible book value per share after the offering to
$1.09 per share and would result in an accretion in pro forma net
tangible book value per share to new investors in this offering of
$0.05 per share, after deducting estimated offering commissions and
offering expenses payable by us. This information is supplied for
illustrative purposes only and may differ based on the actual
offering price and the actual number of shares
offered.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
foregoing discussion and table do not take into account further
dilution to new investors that could occur upon the exercise of
outstanding options or warrants. In addition, we may choose to
raise additional capital due to market conditions or strategic
considerations even if we believe we have sufficient funds for our
current or future operating plans. To the extent that additional
capital is raised through the sale of equity or convertible debt
securities, the issuance of these securities could result in
further dilution to our stockholders.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_DESCRIPTION_OF_SECURITIES"><!--anchor--></a><a name="_Ref87442136"><!--anchor--></a>DESCRIPTION OF
SECURITIES WE ARE OFFERING</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">We are
offering up to $3,600,000 of shares of our common stock. The
material terms and provisions of our common stock are described
under the caption &#x201C;<a href="#capstock"><font style="text-decoration: underline;">Description of Capital
Stock</font></a>&#x201D; starting on page <a href="#capstock"><font style="color: rgb(0, 102, 204);"><font style="text-decoration: underline;">3</font></font></a> of the
accompanying prospectus.<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_Ref87442140">
<!--anchor--></a></font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-17<br></font></div>
</div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="PLAN_OF_DISTRIBUTION_S">P</a>LAN OF DISTRIBUTION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">We entered into a Sales Agreement with Roth
Capital Partners on November 17, 2021, which we filed as an exhibit
to our Current Report on Form 8-K filed with the Commission on
November 17, 2021, which is incorporated by reference in this
prospectus supplement and the accompanying prospectus. Under the
terms of the Sales Agreement, we may offer and sell up to
$3,600,000 of shares of our common stock under this prospectus
supplement from time to time through or to Roth Capital Partners,
as sales agent or principal. Sales of shares of our common stock,
if any, under this prospectus may be made by any method deemed to
be an &#x201C;</font><font style="text-decoration: underline; color: #000000">at the market
offering</font><font style="color: #000000">&#x201D; as defined in
Rule 415 under the Securities Act. We may instruct the Sales Agent
not to sell common stock if the sales cannot be effected at or
above the price designated by us from time to time. We or the Sales
Agent may suspend the offering of common stock upon notice and
subject to other conditions.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
Sales Agent will offer our common stock subject to the terms and
conditions of the Sales Agreement as agreed upon by us and the
Sales Agent. Each time we wish to issue and sell common stock under
the Sales Agreement, we will notify the Sales Agent of the number
or dollar value of shares to be issued, the time period during
which such sales are requested to be made, any limitation on the
number of shares that may be sold in one day, any minimum price
below which sales may not be made and other sales parameters as we
deem appropriate. Once we have so instructed the Sales Agent,
unless the Sales Agent declines to accept the terms of the notice,
the Sales Agent has agreed to use its commercially reasonable
efforts consistent with its normal trading and sales practices to
sell such shares up to the amount specified on such terms. The
obligations of the Sales Agent under the Sales Agreement to sell
our common stock are subject to a number of conditions that we must
meet.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
will pay the Sales Agent commissions for its services in acting as
agent in the sale of our common stock at a commission rate equal to
up to 3.0% of the gross sale price per share sold, provided that
the first $40,000 of fees payable under the Sales Agreement is to
be refunded to the Company. We estimate that the total expenses for
the offering, excluding compensation and reimbursements payable to
the Sales Agent under the Sales Agreement, will be approximately
$75,000. We have also agreed to reimburse the Sales Agent for its
reasonable out-of-pocket expenses, including attorney&#x2019;s fees,
in an amount not to exceed $25,000.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Settlement
for sales of common stock will occur on the second business day
following the date on which any sales are made, or on some other
date that is agreed upon by us and the Sales Agent in connection
with a particular transaction, in return for payment of the net
proceeds to us. There is no arrangement for funds to be received in
an escrow, trust or similar arrangement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
connection with the sale of the common stock on our behalf, Roth
Capital Partners will be deemed to be an underwriter within the
meaning of the Securities Act, and its compensation as Sales Agent
will be deemed to be underwriting commissions or discounts. We have
agreed to provide indemnification and contribution to Roth Capital
Partners against certain civil liabilities, including liabilities
under the Securities Act.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
offering pursuant to this prospectus supplement will terminate upon
the earlier of (1) the issuance and sale of all shares of our
common stock subject to this prospectus supplement; and (2) the
termination of the Sales Agreement as permitted
therein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
prospectus in electronic format may be made available on websites
maintained by the Sales Agent. The Sales Agent and its affiliates
have in the past and may in the future provide various investment
banking and other financial services for us and our affiliates, for
which services it may in the future receive customary fees. To the
extent required by Regulation M, the Sales Agent will not engage in
any market making activities involving our common stock while the
offering is ongoing under this prospectus supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">To
the extent required by Regulation M, the Sales Agent will not
engage in any market making activities involving our common stock
while the offering is ongoing under this prospectus
supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary of the material provisions of the Sales Agreement does not
purport to be a complete statement of its terms and conditions. A
copy of the Sales Agreement is filed as an exhibit to the Current
Report on Form 8-K filed by us on November 17, 2021 and is
incorporated by reference in the registration statement of which
this prospectus supplement and the accompanying prospectus forms a
part, this prospectus supplement and the accompanying
prospectus.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-18<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_Ref87442146"><!--anchor--></a>LEGAL
MATTERS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">The
validity of the common stock being offered hereby be passed upon
for us by The McGeary Law Firm, P.C., Bedford, Texas. <font style="font-size: 13px">&#xA0;</font>Certain legal matters will be passed
upon for Roth Capital Partners by K&amp;L Gates LLP, Irvine,
California.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_Ref87442150">
<!--anchor--></a>EXPERTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
consolidated balance sheets of PEDEVCO Corp. as of December 31,
2020 and 2019, the related consolidated statements of operations,
shareholders&#x2019; equity and cash flows for the years ended
December 31, 2020 and 2019, including the related notes,
incorporated by reference into this prospectus have been so
incorporated by reference in reliance on the reports of Marcum LLP,
an independent registered public accounting firm, given on the
authority of said firm as experts in auditing and
accounting.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
information incorporated by reference into this prospectus
regarding PEDEVCO&#x2019;s estimated quantities of proved developed
producing reserves and the future net revenues from those reserves
as of December 31, 2020 is based on the proved reserve report
prepared by Cawley, Gillespie &amp; Associates, Inc.,
PEDEVCO&#x2019;s independent petroleum engineers. These estimates
are incorporated by reference in reliance upon the authority of
such firm as an expert in these matters.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">No
expert or counsel named in this prospectus as having prepared or
certified any part of this prospectus or having given an opinion
upon the validity of the securities being registered or upon other
legal matters in connection with the registration or offering of
the common stock was employed on a contingency basis, or had, or is
to receive, any interest, directly or indirectly, in our Company or
any of our parents or subsidiaries, nor was any such person
connected with us or any of our parents or subsidiaries, if any, as
a promoter, managing or principal underwriter, voting trustee,
director, officer, or employee.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
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</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_INFORMATION_INCORPORATED_BY"><!--anchor--></a><a name="_Ref87442154"><!--anchor--></a>INFORMATION
INCORPORATED BY REFERENCE</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The SEC allows us to &#x201C;</font><font style="text-decoration: underline; color: #000000">incorporate by
reference</font><font style="color: #000000">&#x201D; into this
prospectus&#xA0;supplement and accompanying base
prospectus&#xA0;the information that we file with it, which means
that we can disclose important information to you by referring you
to those documents. The information incorporated by reference is
considered to be part of this prospectus&#xA0;supplement and
accompanying base prospectus&#xA0;from the date on which we file
that document. Any reports filed by us with the SEC (i) on or after
the date of filing of the registration statement of which this
prospectus supplement and accompanying base prospectus form a
part&#xA0;and (ii) on or after the date of this
prospectus&#xA0;supplement and accompanying base
prospectus&#xA0;and before the termination of the offering of the
Shares of common stock by means of this prospectus&#xA0;supplement
and accompanying base prospectus&#xA0;will automatically update
and, where applicable, supersede information contained in this
prospectus&#xA0;supplement and accompanying base prospectus&#xA0;or
incorporated by reference into this prospectus&#xA0;supplement and
accompanying base prospectus.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
incorporate by reference the documents listed below, all filings
filed by us pursuant to the Exchange Act after the date of the
registration statement of which this prospectus&#xA0;supplement and
accompanying base prospectus&#xA0;form a part, and any future
filings we make with the SEC under Sections 13(a), 13(c), 14 or
15(d) of the Exchange Act, prior to the time that all shares of
common stock covered by this prospectus&#xA0;supplement and
accompanying base prospectus&#xA0;have been sold; provided,
however, that we are not incorporating any information furnished
under either Item 2.02 or Item 7.01 of any current report on Form
8-K:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our&#xA0;,
filed with the SEC on March 23, 2021; <font><font style="text-decoration: underline;"><a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421003087/0001654954-21-003087-index.htm">
Annual Report on Form 10-K for the year ended December 31,
2020</a></font></font></font><font><font style="font-family: Times New Roman; font-size: 13px">&#xA0; (The "Annual
Report");<font style="text-decoration: underline;"><br></font></font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Our&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421005884/0001654954-21-005884-index.htm"><font style="text-decoration: underline;">Quarterly
Report on Form 10-Q for the quarter ended March 31,
2021</font></a>, filed with the SEC on May 17, 2021,&#xA0;
our&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421009090/0001654954-21-009090-index.htm"><font style="text-decoration: underline;">Quarterly
Report on Form 10-Q for the quarter ended June 30, 2021</font></a>,
filed with the SEC on August 16, 2021, and our <a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421012334/0001654954-21-012334-index.htm">
<font style="text-decoration: underline; font-size: 13px;">Quarterly Report on
Form 10-Q/A (Amendment No. 1) for the quarter ended September 30,
2021</font>, filed with the SEC on November 16,
2021</a>;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our
Current Reports on Forms 8-K (other than information furnished
rather than filed) filed with the SEC on&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421000702/0001654954-21-000702-index.htm"><font style="text-decoration: underline;">January
22, 2021</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421001118/0001654954-21-001118-index.htm"><font style="text-decoration: underline;">February
3, 2021</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421001208/0001654954-21-001208-index.htm"><font style="text-decoration: underline;">February
5, 2021</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421003089/0001654954-21-003089-index.htm"><font style="text-decoration: underline;">March
23, 2021</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421003777/0001654954-21-003777-index.htm"><font style="text-decoration: underline;">April
1, 2021</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421009655/0001654954-21-009655-index.htm"><font style="text-decoration: underline;">September
1, 2021</font></a>, and <a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421010862/0001654954-21-010862-index.htm">
<font style="text-decoration: underline;">October 6,
2021</font></a>;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000165495421008081/0001654954-21-008081-index.htm"><font style="text-decoration: underline;">Definitive
Proxy Statement on Schedule 14A&#xA0;</font></a>filed with the SEC
on July 20, 2021 (except as discussed under &#x201C;<font style="text-decoration: underline;">Incorporation by
Reference</font>&#x201D; in such Definitive Proxy
Statement)<font style="font-family: Times New Roman; font-size: 13px;"><font style="color: #FF0000; font-family: Times New Roman; font-size: 13px"><font style="color: rgb(0, 0, 0);">,
and to the extent such information is specifically incorporated by
reference into the Annual Report;</font></font></font>
and<br></font> </div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;The
description of our common stock contained in our&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/0001141197/000135448813005071/0001354488-13-005071-index.htm"><font style="text-decoration: underline;">Registration
Statement on Form 8-A/A</font></a>, filed with the SEC on September
5, 2013 (File No. 001-35922) pursuant to Section 12(b) of the
Exchange Act, as updated by&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420003503/ped_ex41.htm"><font style="text-decoration: underline;">Exhibit
4.1</font></a>&#xA0;to our Annual Report on Form 10-K for the year
ended December 31, 2019 filed with the SEC on March 30, 2020,
together with any amendment or report filed for the purpose of
updating such description.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">&#xA0;
<font style="color: #000000; font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">These
documents contain important information about us, our business and
our financial condition. Copies of documents incorporated by
reference, excluding exhibits except to the extent such exhibits
are specifically incorporated by reference, are available from us
without charge, upon oral or written request to:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PEDEVCO Corp.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Attn: Clark R. Moore, Secretary</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
575 N. Dairy Ashford</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Energy Center II, Suite 210</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Houston, Texas 77079</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
(713) 221-1768</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">All
documents filed by us pursuant to Sections 13(a), 13(c), 14 or
15(d) of the Securities Act or the Exchange Act, excluding any
information in those documents that are deemed by the rules of the
SEC to be furnished but not filed, after the date of this
prospectus supplement and before the termination of this offering
shall be deemed to be incorporated in this
prospectus&#xA0;supplement and accompanying base
prospectus&#xA0;and to be a part hereof from the date of the filing
of such document. Any statement contained in a document
incorporated by reference herein shall be deemed to be modified or
superseded for all purposes to the extent that a statement
contained in this prospectus supplement, or in any other
subsequently filed document which is also incorporated or deemed to
be incorporated by reference, modifies or supersedes such
statement. Any statement so modified or superseded shall not be
deemed, except as so modified or superseded, to constitute a part
of this prospectus&#xA0;supplement and accompanying base
prospectus. You will be deemed to have notice of all information
incorporated by reference in this prospectus supplement as if that
information was included in this prospectus
supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">Nothing
in this prospectus supplement shall be deemed to incorporate
information furnished but not filed with the SEC pursuant to Item
2.02 or 7.01 of Form 8-K.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Statements
made in this prospectus&#xA0;supplement and accompanying base
prospectus&#xA0;or in any document incorporated by reference in
this prospectus&#xA0;supplement and accompanying base
prospectus&#xA0;as to the contents of any contract or other
document referred to herein or therein are not necessarily
complete, and in each instance reference is made to the copy of
such contract or other document filed as an exhibit to the
documents incorporated by reference, each such statement being
qualified in all material respects by such reference.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The information described above can also be
accessed on the &#x201C;</font><font style="text-decoration: underline; color: #000000">Investors&#x2014;SEC
filings</font><font style="color: #000000">&#x201D; page of our
website at&#xA0;</font><font style="text-decoration: underline; color: #0000FF">www.pedevco.com</font><font style="color: #000000">.
Neither this website nor the information on this website is
included or incorporated in, or is a part of, this
prospectus&#xA0;supplement and accompanying base
prospectus.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">S-20<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_WHERE_YOU_CAN_2">
<!--anchor--></a><a name="_Ref87442159">
<!--anchor--></a>WHERE YOU CAN FIND MORE INFORMATION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">We file annual, quarterly, and current reports,
proxy statements and other information with the SEC. Our SEC
filings are available to the public over the Internet at the
SEC&#x2019;s web site at&#xA0;</font><font style="text-decoration: underline; color: #000000">www.sec.gov&#xA0;</font><font style="color: #000000">and
on the &#x201C;</font><font style="text-decoration: underline; color: #000000">Investors&#x2014;SEC
filings</font><font style="color: #000000">&#x201D; page of our
website at&#xA0;</font><font style="text-decoration: underline; color: #0000FF">www.pedevco.com</font><font style="color: #000000">.
Information on our website is not part of this
prospectus&#xA0;supplement and accompanying base prospectus, and we
do not desire to incorporate by reference such information herein.
The SEC maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers
that file electronically with the SEC like us. Our SEC filings are
also available to the public from the SEC&#x2019;s website
at&#xA0;</font><font style="text-decoration: underline; color: #000000">https://www.sec.gov</font><font style="color: #000000">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
prospectus supplement is part of the registration statement and the
accompanying base prospectus contained therein and does not contain
all of the information included in the registration statement or
the accompanying base prospectus. Whenever a reference is made in
this prospectus supplement to any of our contracts or other
documents, the reference may not be complete and, for a copy of the
contract or document, you should refer to the exhibits that are a
part of the registration statement. You should rely only on the
information contained or incorporated by reference in this
prospectus supplement, the accompanying base prospectus and any
supplement or amendment hereto. We have not authorized anyone to
provide you with information different from that contained in this
prospectus supplement and the accompanying base prospectus. The
shares of common stock offered under this prospectus supplement and
the accompanying base prospectus are offered only in jurisdictions
where offers and sales are permitted. The information contained in
this prospectus supplement and the accompanying base prospectus,
and any free writing prospectus, is accurate only as of the date of
this prospectus supplement, the accompanying base prospectus and
any such free writing prospectus, regardless of the time of
delivery of this prospectus supplement, the accompanying base
prospectus, or any free writing prospectus, or any sale of the
shares of common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
prospectus supplement and the accompanying base prospectus
constitute a part of a registration statement we filed with the SEC
under the Securities Act. This prospectus supplement and the
accompanying base prospectus do not contain all of the information
set forth in the registration statement, certain parts of which are
omitted in accordance with the rules and regulations of the SEC.
For further information with respect to us and the shares offered
hereby, reference is hereby made to the registration statement. The
registration statement may be inspected at the public reference
facilities maintained by the SEC at the addresses set forth in the
paragraph above. Statements contained herein concerning any
document filed as an exhibit are not necessarily complete, and, in
each instance, reference is made to the copy of such document filed
as an exhibit to the registration statement. Each such statement is
qualified in its entirety by such reference.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div id="pn" style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">S-21</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PROSPECTUS</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
$100,000,000</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="ped1.jpg"></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PEDEVCO Corp.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Common Stock</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Preferred Stock</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Warrants</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Units</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">We may from time to time, in one or more offerings
at prices and on terms that we will determine at the time of each
offering, sell common stock, preferred stock, warrants, units or a
combination of these securities (collectively referred to as
&#x201C;</font><font style="text-decoration: underline; color: #000000">securities</font><font style="color: #000000">&#x201D;)
for an aggregate initial offering price of up to $100 million. This
prospectus describes the general manner in which our securities may
be offered using this prospectus. Each time we offer and sell
securities, we will provide you with a prospectus supplement that
will contain specific information about the terms of that offering.
We may also authorize one or more free writing prospectuses to be
provided to you in connection with these offerings. Any prospectus
supplement and any related free writing prospectus may also add,
update, or change information contained in this prospectus. You
should carefully read this prospectus, the applicable prospectus
supplement and any related free writing prospectus as well as the
documents incorporated or deemed to be incorporated by reference
herein or therein before you purchase any of the securities offered
hereby.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
This prospectus may not be used to offer or sell our securities
unless accompanied by a prospectus supplement. The information
contained or incorporated in this prospectus or in any prospectus
supplement is accurate only as of the date of this prospectus, or
such prospectus supplement, as applicable, regardless of the time
of delivery of this prospectus or any sale of our
securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Securities may be sold by us to or through
underwriters or dealers, directly to purchasers or through agents
designated from time to time. For additional information on the
methods of sale, you should refer to the section entitled
&#x201C;</font><font style="text-decoration: underline; color: #000000">Plan of
Distribution</font><font style="color: #000000">&#x201D; in this
prospectus. If any underwriters are involved in the sale of any
securities with respect to which this prospectus is being
delivered, the names of such underwriters and any applicable
discounts or commissions and over-allotment options will be set
forth in a prospectus supplement. The price to the public of such
securities and the net proceeds we expect to receive from such sale
will also be set forth in a prospectus
supplement.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;Our
principal executive offices are located at 575 N. Dairy Ashford,
Energy Center II, Suite 210, Houston, Texas 77079, and our phone
number at this address is (713) 221-1768.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">Our common stock is
listed on the NYSE American under the symbol
&#x201C;</font><font style="text-decoration: underline; color: #000000; background-color: #FFFFFF">PED.</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;
On November 20, 2020, the last reported sales price of our common
stock was $1.32.</font><font style="color: #000000">&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">There is currently no
market for the other securities we may offer. You are urged to
obtain current market quotations of our common stock (and any other
securities we may offer for which there is a current market),
before purchasing any of the securities being offered for sale
pursuant to this prospectus or any prospectus supplement. The
prospectus supplement will contain information, where applicable,
as to any other listing of the securities on the NYSE American or
any other securities market or exchange covered by the prospectus
supplement.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">Pursuant to General
Instruction I.B.6 of Form S-3, in no event will we sell securities
in a public primary offering with a value exceeding more than
one-third of our public float in any 12-month period so long as our
public float remains below $75 million. As of the date of this
prospectus, the aggregate market value of our outstanding voting
and nonvoting common equity held by non-affiliates (i.e., our
public float) was</font><font style="color: #000000">&#xA0;$11,488,701 based on 72,463,340 shares of
common stock outstanding, of which 8,703,562 shares are held by
non-affiliates,&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">and a per share value
of $1.32 based on the closing price of our common stock on the NYSE
American on November 20, 2020.</font><font style="color: #000000">&#xA0;</font><font style="color: #000000; background-color: #FFFFFF">We have not offered any
securities pursuant to General Instruction I.B.6 of Form S-3 during
the 12 calendar months prior to and including the date of this
prospectus.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
Investing in our securities involves risks. You should carefully
consider the&#xA0;risks described under the heading
&#x201C;</font><font style="text-decoration: underline; color: #000000">Risk
Factors</font><font style="color: #000000">&#x201D;&#xA0;beginning
on page</font> 1 <font style="color: #000000">of this prospectus
and set forth in the documents incorporated by reference herein
before making any decision to invest in our
securities.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal
offense.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The date of this prospectus is December 2, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td colspan="2" style="vertical-align: top; width: 100%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">
TABLE OF CONTENTS</font>&#xA0;<font style="color: #000000">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Page</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_ABOUT_THIS_PROSPECTUS"><font style="color: #0000FF">About This Prospectus</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_RISK_FACTORS"><font style="color: #0000FF">Risk
Factors</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_ABOUT_PEDEVCO"><font style="color: #0000FF">About
PEDEVCO</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
Forward-Looking Statements</font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_USE_OF_PROCEEDS"><font style="color: #0000FF">Use of
Proceeds</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_DESCRIPTION_OF_CAPITAL_1"><font style="color: #0000FF">Description of Capital
Stock</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_DESCRIPTION_OF_WARRANTS"><font style="color: #0000FF">Description of Warrants</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">6<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_DESCRIPTION_OF_UNITS"><font style="color: #0000FF">Description of Units</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">7<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_PLAN_OF_DISTRIBUTION"><font style="color: #0000FF">Plan
of Distribution</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">8<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_LEGAL_MATTERS"><font style="color: #0000FF">Legal
Matters</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_EXPERTS"><font style="color: #0000FF">Experts</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_WHERE_YOU_CAN"><font style="color: #0000FF">Where You
Can Find More Information</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 90%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="#_INCORPORATION_OF_CERTAIN"><font style="color: #0000FF">Incorporation of Certain Documents by
Reference</font></a></font></div>
</td>
<td style="vertical-align: middle; width: 10%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">10<br>
</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_ABOUT_THIS_PROSPECTUS">
<!--anchor--></a>ABOUT THIS PROSPECTUS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">This prospectus is a part of a registration
statement that we filed with the Securities and Exchange Commission
(the &#x201C;</font><font style="text-decoration: underline; color: #000000">SEC</font><font style="color: #000000">&#x201D;) utilizing a &#x201C;</font><font style="text-decoration: underline; color: #000000">shelf</font><font style="color: #000000">&#x201D;
registration process. Under this shelf registration process, we may
offer to sell any combination of the securities described in this
prospectus, either individually or in units, in one or more
offerings up to a total dollar amount that will not exceed the
lesser of $100,000,000 or such aggregate amount permitted under
General Instruction I.B.6 of Form S-3. This prospectus provides you
with a general description of the securities we may offer. Each
time we sell securities under this shelf registration, we will
provide a prospectus supplement that will contain specific
information about the terms of that offering. We may also authorize
one or more free writing prospectuses to be provided to you that
may contain material information about the terms of that offering.
The prospectus supplement and any related free writing prospectus
that we may authorize to be provided to you may also add, update or
change information contained in this prospectus. To the extent that
any statement that we make in a prospectus supplement and any
related free writing prospectus that we may authorize to be
provided to you is inconsistent with statements made in this
prospectus, the statements made in this prospectus will be deemed
modified or superseded by those made in the prospectus supplement.
You should read this prospectus and any prospectus supplement and
free writing prospectus, including all documents incorporated
herein or therein by reference, together with additional
information described under &#x201C;</font><font style="text-decoration: underline; color: #000000">Where You Can Find
More Information</font><font style="color: #000000">&#x201D; and
&#x201C;</font><font style="text-decoration: underline; color: #000000">Incorporation of
Certain Documents by Reference</font><font style="color: #000000">&#x201D; before making an investment decision. We
may only use this prospectus to sell the securities if it is
accompanied by a prospectus supplement.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">You
should rely only on the information included or incorporated by
reference in this prospectus and any accompanying prospectus
supplement or free writing prospectus. We have not authorized any
dealer, salesman or other person to provide you with additional or
different information. This prospectus and any accompanying
prospectus supplement and free writing prospectus are not an offer
to sell or the solicitation of an offer to buy any securities other
than the securities to which they relate and are not an offer to
sell or the solicitation of an offer to buy securities in any
jurisdiction to any person to whom it is unlawful to make an offer
or solicitation in that jurisdiction. You should not assume that
the information contained in this prospectus and the accompanying
prospectus supplement, and any free writing prospectus, is accurate
on any date subsequent to the date set forth on the front of the
document or that any information we have incorporated by reference
is correct on any date subsequent to the date of the document
incorporated by reference, even though this prospectus and any
accompanying prospectus supplement and free writing prospectus is
delivered or securities are sold on a later date. We will disclose
any material changes in our affairs in a post-effective amendment
to the registration statement of which this prospectus is a part, a
prospectus supplement, free writing prospectus or a future filing
with the SEC incorporated by reference in this prospectus. We do
not imply or represent by delivering this prospectus that PEDEVCO
Corp., or its business, financial condition or results of
operations, are unchanged after the date on the front of this
prospectus or that the information in this prospectus is correct at
any time after such date.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Persons outside the United States (the
&#x201C;</font><font style="text-decoration: underline; color: #000000">U.S.</font><font style="color: #000000">&#x201D;)
who come into possession of this prospectus must inform themselves
about, and observe any restrictions relating to, the offering of
the securities and the distribution of this prospectus outside of
the U.S.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Unless the context otherwise requires, references
in this prospectus and the accompanying prospectus supplement to
&#x201C;</font><font style="text-decoration: underline; color: #000000">we,</font><font style="color: #000000">&#x201D; &#x201C;</font><font style="text-decoration: underline; color: #000000">us,</font><font style="color: #000000">&#x201D; &#x201C;</font><font style="text-decoration: underline; color: #000000">our,</font><font style="color: #000000">&#x201D;
the &#x201C;</font><font style="text-decoration: underline; color: #000000">Company,</font><font style="color: #000000">&#x201D;
and &#x201C;</font><font style="text-decoration: underline; color: #000000">PEDEVCO</font><font style="color: #000000">&#x201D;
refer to PEDEVCO Corp. and its subsidiaries.</font><font style="font-weight: bold; color: #000000">&#xA0;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_RISK_FACTORS">
<!--anchor--></a><a name="_Ref87435087">
<!--anchor--></a>RISK FACTORS</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Investing in our securities involves certain
risks. You should carefully consider the risk factors and all of
the other information included in, or incorporated by reference
into, this prospectus, including those included in our most recent
Annual Report on Form 10-K and in our Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, in evaluating an investment
in our securities. If any of these risks were to occur, our
business, financial condition or results of operations could be
adversely affected. In that case, you could lose all or part of
your investment. For access to documents that are incorporated by
reference into this prospectus, please see the sections entitled,
&#x201C;</font><font style="text-decoration: underline; color: #000000">Where You Can Find
More Information</font><font style="color: #000000">&#x201D; and
&#x201C;</font><font style="text-decoration: underline; color: #000000">Incorporation of
Certain Documents by Reference.</font><font style="color: #000000">&#x201D;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_ABOUT_PEDEVCO"><!--anchor--></a>ABOUT
PEDEVCO</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
are an oil and gas company focused on the acquisition and
development of oil and natural gas assets where the latest in
modern drilling and completion techniques and technologies have yet
to be applied. In particular, we focus on legacy proven properties
where there is a long production history, well-defined geology, and
existing infrastructure that can be leveraged when applying modern
field management technologies. Our current properties are located
in the San Andres formation of the Permian Basin situated in West
Texas and eastern New Mexico and in the Denver-Julesberg Basin in
Colorado.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Our principal executive offices are located at 575
N. Dairy Ashford, Energy Center II, Suite 210, Houston, Texas
77079, and our phone number at this address is (713) 221-1768. Our
website address is&#xA0;</font><font style="text-decoration: underline; color: #000000">www.pedevco.com</font><font style="color: #000000">.
Information on our website or any other website is not, and will
not be, a part of this prospectus and is not, and will not be,
incorporated by reference into this prospectus.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
FORWARD-LOOKING STATEMENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">This registration statement, of which this
prospectus forms a part, and the documents to which we refer you in
this registration statement, include forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the &#x201C;</font><font style="text-decoration: underline; color: #000000">Securities
Act</font><font style="color: #000000">&#x201D;) and Section 21E of
the Securities Exchange Act of 1934, as amended (the
&#x201C;</font><font style="text-decoration: underline; color: #000000">Exchange
Act</font><font style="color: #000000">&#x201D;). The words
&#x201C;</font><font style="text-decoration: underline; color: #000000">believe,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">intend,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">plan,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">expect,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">anticipate,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">estimate,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">project,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">goal</font><font style="color: #000000">&#x201D;
and similar expressions identify such statements, although not all
forward-looking statements contain such identifying words. These
statements are subject to known and unknown risks, uncertainties,
and other factors that could cause the actual results to differ
materially from those contemplated by the statements. The
forward-looking information is based on various factors and is
derived using numerous assumptions. Factors that might cause or
contribute to such a discrepancy include, but are not limited to,
the risks discussed in this and our other SEC filings. We do not
promise to or take any responsibility to update forward-looking
information to reflect actual results or changes in assumptions or
other factors that could affect those statements except as required
by law. Future events and actual results could differ materially
from those expressed in, contemplated by, or underlying such
forward-looking statements.</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">1<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Forward-looking
statements may include statements about our:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;business
strategy;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;reserves;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;technology;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;cash
flows and liquidity;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;financial
strategy, budget, projections, and operating results;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;oil
and natural gas realized prices;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;timing
and amount of future production of oil and natural
gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;availability
of oil field labor;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
amount, nature, and timing of capital expenditures, including
future exploration and development costs;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;drilling
of wells;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;government
regulation and taxation of the oil and natural gas
industry;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;marketing
of oil and natural gas;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;exploitation
projects or property acquisitions;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;costs
of exploiting and developing our properties and conducting other
operations;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;general
economic conditions in the U.S. and around the world, including the
effect of regional or global health pandemics (such as
COVID-19);</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
effect of COVID-19 on the U.S. and global economy, the effect of
U.S. and global efforts to reduce the spread of the virus,
including &#x2018;stay-at-home&#x2019; and other orders, and the
resulting effect of such pandemic and governmental responses
thereto on the market for oil and gas and the U.S. and global
economy in general;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;competition
in the oil and natural gas industry;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;effectiveness
of our risk management activities;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;environmental
liabilities;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;counterparty
credit risk;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;developments
in oil-producing and natural gas-producing countries;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;future
operating results;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;future
acquisition transactions;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;estimated
future reserves and the present value of such reserves;
and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;plans,
objectives, expectations, and intentions contained in this
registration statement, prospectus and the documents incorporated
herein by reference that are not historical.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">All forward-looking statements speak only at the
date of which they are made. The reader should not place undue
reliance on these forward-looking statements. Although we believe
that our plans, intentions, and expectations reflected in or
suggested by the forward-looking statements are reasonable, we
provide no assurance that these plans, intentions, or expectations
will be achieved. We disclose important factors that could cause
our actual results to differ materially from our expectations under
&#x201C;</font><font style="text-decoration: underline; color: #000000">Risk
Factors</font><font style="color: #000000">&#x201D; and
&#x201C;</font><font style="text-decoration: underline; color: #000000">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font><font style="color: #000000">&#x201D; and elsewhere
in our Annual Report on Form 10-K for the year ended December 31,
2019, filed with the SEC on March 30, 2020, in our Quarterly
Reports, and in our other filings with the SEC. These cautionary
statements qualify all forward-looking statements attributable to
us or persons acting on our behalf. We do not undertake any
obligation to update or revise publicly any forward-looking
statements except as required by law, including the securities laws
of the U.S. and the rules and regulations of the
SEC.</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_USE_OF_PROCEEDS">
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<div id="ftr">
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</div>
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<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
USE OF PROCEEDS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Unless
otherwise indicated in the applicable prospectus supplement, we
intend to use the net proceeds from the sale of the securities
offered in the prospectus and any prospectus supplement for future
drilling and development, additional leasehold acquisitions,
repayment of debt, working capital and general corporate purposes.
We may also use a portion of the net proceeds to acquire or invest
in businesses and assets that are complementary to our own,
although we have no current plans, commitments or agreements with
respect to any acquisitions as of the date of this prospectus.
Pending the uses described above, we intend to invest the net
proceeds in short-term, interest bearing, investment-grade
securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_DESCRIPTION_OF_CAPITAL_1">
<!--anchor--></a><a name="_Ref87435104">
<!--anchor--></a><a name="capstock">D</a>ESCRIPTION
OF CAPITAL STOCK</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
section describes the general terms and provisions of the capital
stock offered by this prospectus. The applicable prospectus
supplement will describe the specific terms of the capital stock
offered under that applicable prospectus supplement.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The following summary of the terms of PEDEVCO
Corp.&#x2019;s capital stock is not meant to be complete and is
qualified by reference to the relevant provisions of our
certificate of formation, as amended (&#x201C;</font><font style="text-decoration: underline; color: #000000">Certificate of
Formation</font><font style="color: #000000">&#x201D;), our
certificates of designation for our preferred stock
(&#x201C;</font><font style="text-decoration: underline; color: #000000">Certificates of
Designation</font><font style="color: #000000">&#x201D;) and our
bylaws, as amended (&#x201C;</font><font style="text-decoration: underline; color: #000000">Bylaws</font><font style="color: #000000">&#x201D;).
Copies of our Certificate of Formation, Certificates of Designation
and Bylaws are incorporated herein as exhibits to the registration
statement for which this prospectus forms a part. For purposes of
this description, references to &#x201C;</font><font style="text-decoration: underline; color: #000000">the
Company,</font><font style="color: #000000">&#x201D;
&#x201C;</font><font style="text-decoration: underline; color: #000000">we,</font><font style="color: #000000">&#x201D; &#x201C;</font><font style="text-decoration: underline; color: #000000">our</font><font style="color: #000000">&#x201D; and &#x201C;</font><font style="text-decoration: underline; color: #000000">us</font><font style="color: #000000">&#x201D; refer only to PEDEVCO Corp. and not to its
subsidiaries.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Only
our common stock is registered under Section 12 of the Exchange
Act.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Authorized Capitalization</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
total number of authorized shares of our common stock is
200,000,000 shares, $0.001 par value per share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The total number of &#x201C;</font><font style="text-decoration: underline; color: #000000">blank
check</font><font style="color: #000000">&#x201D; authorized shares
of our preferred stock is 100,000,000 shares, $0.001 par value per
share. The total number of designated shares of our Series A
Convertible Preferred Stock is 66,625. No shares of any class of
our preferred stock are outstanding.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Common Stock</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">Voting
Rights</font><font style="color: #000000">. Each share of our
common stock is entitled to one vote on all stockholder matters.
Shares of our common stock do not possess any cumulative voting
rights.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Except
for the election of directors, if a quorum is present, an action on
a matter is approved if it receives the affirmative vote of the
holders of a majority of the voting power of the shares of capital
stock present in person or represented by proxy at the meeting and
entitled to vote on the matter, unless otherwise required by
applicable law, Texas law, our Certificate of Formation or Bylaws.
The election of directors will be determined by a plurality of the
votes cast in respect of the shares present in person or
represented by proxy at the meeting and entitled to vote, meaning
that the nominees with the greatest number of votes cast, even if
less than a majority, will be elected. The rights, preferences and
privileges of holders of common stock are subject to, and may be
impacted by, the rights of the holders of shares of any series of
preferred stock that we have designated, or may designate and issue
in the future.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">Dividend
Rights</font><font style="color: #000000">. Each share of our
common stock is entitled to equal dividends and distributions per
share with respect to the common stock when, as and if declared by
our board of directors (the &#x201C;</font><font style="text-decoration: underline; color: #000000">Board</font><font style="color: #000000">&#x201D;),
subject to any preferential or other rights of any outstanding
preferred stock.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">Liquidation and Dissolution
Rights</font><font style="color: #000000">. Upon liquidation,
dissolution or winding up, our common stock will be entitled to
receive pro rata on a share-for-share basis, the assets available
for distribution to the stockholders after payment of liabilities
and payment of preferential and other amounts, if any, payable on
any outstanding preferred stock.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">Other
Matters</font><font style="color: #000000">. No holder of any
shares of our common stock has a preemptive right to subscribe for
any of our securities, nor are any shares of our common stock
subject to redemption or convertible into other
securities.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">NYSE.</font><font style="color: #000000">&#xA0;Our common stock is listed for trading on
the NYSE American under the symbol &#x201C;</font><font style="text-decoration: underline; color: #000000">PED.</font><font style="color: #000000">&#x201D;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">Transfer Agent and
Registrar</font><font style="color: #000000">. The transfer agent
and registrar for our common stock is American Stock Transfer &amp;
Trust Company, LLC.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Preferred Stock</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A
prospectus supplement relating to any series of preferred stock
being offered will include specific terms relating to the offering.
Such prospectus supplement will include:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
title and stated or par value of the preferred stock;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
number of shares of the preferred stock offered, the liquidation
preference per share and the offering price of the preferred
stock;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
dividend rate(s), period(s) and/or payment date(s) or method(s) of
calculation thereof applicable to the preferred stock;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;whether
dividends shall be cumulative or non-cumulative and, if cumulative,
the date from which dividends on the preferred stock shall
accumulate;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">3<br></font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
provisions for a sinking fund, if any, for the preferred
stock;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
voting rights of the preferred stock;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
provisions for redemption, if applicable, of the preferred stock
and any restriction on the repurchase or redemption of shares by
the Company while there is any arrearage in the payment of
dividends or sinking fund installments;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
listing of the preferred stock on any securities
exchange;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
terms and conditions, if applicable, upon which the preferred stock
will be convertible into our common stock, including the conversion
price or the manner of calculating the conversion price and
conversion period;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;if
appropriate, a discussion of federal income tax consequences
applicable to the preferred stock; and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
other specific terms, preferences, rights, limitations or
restrictions of the preferred stock.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
terms, if any, on which the preferred stock may be convertible into
or exchangeable for our common stock will also be stated in the
preferred stock prospectus supplement. The terms will include
provisions as to whether conversion or exchange is mandatory, at
the option of the holder or at our option, and may include
provisions pursuant to which the number of shares of our common
stock to be received by the holders of preferred stock would be
subject to adjustment.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">When
we issue shares of preferred stock, the shares will be fully paid
and non-assessable, which means the full purchase price of the
shares will have been paid and holders of the shares will not be
assessed any additional monies for the shares. Unless the
applicable prospectus supplement indicates otherwise, each series
of the preferred stock will rank equally with any outstanding
shares of our preferred stock and each other series of the
preferred stock. Unless the applicable prospectus supplement states
otherwise, the preferred stock will have no preemptive rights to
subscribe for any additional securities which are issued by us,
meaning, the holders of shares of preferred stock will have no
right to buy any portion of the issued securities.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#xA0;In addition, unless the applicable
prospectus indicates otherwise, we will have the right to
&#x201C;</font><font style="text-decoration: underline; color: #000000">reopen</font><font style="color: #000000">&#x201D;
a previous issue of a series of preferred stock by issuing
additional preferred stock of such series.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
transfer agent, registrar, dividend disbursing agent and redemption
agent for shares of each series of preferred stock will be named in
the prospectus supplement relating to such series.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Limitation of Liability and Indemnification of Officers and
Directors</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Section 7.001 of the Texas Business Organizations
Code (the &#x201C;</font><font style="text-decoration: underline; color: #000000">TBOC</font><font style="color: #000000">&#x201D;)
permits a Texas corporation to limit the personal liability of
directors to it or its shareholders for monetary damages for any
act or omission in a director&#x2019;s capacity as director. Under
the provisions of Chapter 8 of the TBOC, we may indemnify our
directors, officers, employees and agents and purchase and maintain
liability insurance for those persons. Chapter 8 of the TBOC
provides that any director or officer of a Texas corporation may be
indemnified against judgments, penalties, fines, settlements and
reasonable expenses actually incurred by him or her in connection
with or in defending any action, suit or proceeding in which he or
she is a party by reason of his or her position. With respect to
any proceeding arising from actions taken in his or her official
capacity as a director or officer, he or she may be indemnified so
long as it shall be determined that he or she conducted himself in
good faith and that he or she reasonably believed that such conduct
was in the corporation&#x2019;s best interests. In cases not
concerning conduct in his or her official capacity as a director or
officer, a director may be indemnified as long as he or she
reasonably believed that his or her conduct was not opposed to the
corporation&#x2019;s best interests. In the case of any criminal
proceeding, a director or officer may be indemnified if he or she
had no reasonable cause to believe his or her conduct was unlawful.
If a director or officer is wholly successful, on the merits or
otherwise, in connection with such a proceeding, such
indemnification is mandatory.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
Certificate of Formation provides that our directors are not
personally liable to our shareholders or us for monetary damages
for an act or omission in their capacity as a director. A director
may, however, be found liable for, and we may be prohibited from
indemnifying them against:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
breach of the director&#x2019;s duty of loyalty to our shareholders
or us;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;acts
or omissions not in good faith that constitute a breach of the
director&#x2019;s duty to the Company;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;acts
or omissions that involve intentional misconduct or a knowing
violation of law;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
transaction from which the director receives an improper benefit;
or</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;acts
or omissions for which the liability is expressly provided by an
applicable statute.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
Certificate of Formation also provides that we will indemnify our
directors, and may indemnify our agents, to the fullest extent
permitted by applicable Texas law from any expenses, liabilities or
other matters. Insofar as indemnification for liabilities arising
under the Securities Act may be permitted for directors, officers
and controlling persons of the Company under our Certificate of
Formation, it is the position of the SEC that such indemnification
is against public policy as expressed in the Securities Act and is,
therefore, unenforceable.</font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">4<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Indemnification Agreements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
have entered into indemnification agreements with each of our
officers and directors pursuant to which we have agreed, to the
maximum extent permitted by applicable law and subject to the
specified terms and conditions set forth in each agreement, to
indemnify a director or officer who acts on our behalf and is made
or threatened to be made a party to any action or proceeding
against expenses, judgments, fines and amounts paid in settlement
that are incurred by such officer or director in connection with
the action or proceeding. The indemnification provisions apply
whether the action was instituted by a third party or by us. We
also maintain insurance on behalf of our officers and directors
that provides coverage for expenses and liabilities incurred by
them in their capacities as officers and directors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
&#xA0;</font><font style="color: #000000; font-size: 13px">&#xA0;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Business Combinations under Texas Law</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A
number of provisions of Texas law, our Certificate of Formation and
Bylaws could make it more difficult for the acquisition of the
Company by means of a tender offer, a proxy contest or otherwise
and the removal of incumbent officers and directors. These
provisions are intended to discourage coercive takeover practices
and inadequate takeover bids and to encourage persons seeking to
acquire control of the Company to negotiate first with our
Board.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">We are subject to the provisions of Title 2,
Chapter 21, Subchapter M of the Texas Business Organizations Code
(the &#x201C;</font><font style="text-decoration: underline; color: #000000">Texas Business
Combination Law</font><font style="color: #000000">&#x201D;). That
law provides that a Texas corporation may not engage in specified
types of business combinations, including mergers, consolidations
and asset sales, with a person, or an affiliate or associate of
that person, who is an &#x201C;</font><font style="text-decoration: underline; color: #000000">affiliated
shareholder</font><font style="color: #000000">&#x201D;,&#xA0;for a
period of three years from the date that person became an
affiliated shareholder, subject to certain exceptions (described
below). An &#x201C;</font><font style="text-decoration: underline; color: #000000">affiliated
shareholder</font><font style="color: #000000">&#x201D; is generally
defined as the holder of 20% or more of the corporation&#x2019;s
voting shares. The law&#x2019;s prohibitions do not apply if the
business combination or the acquisition of shares by the affiliated
shareholder was approved by the board of directors of the
corporation before the affiliated shareholder became an affiliated
shareholder; or the business combination was approved by the
affirmative vote of the holders of at least two-thirds of the
outstanding voting shares of the corporation not beneficially owned
by the affiliated shareholder, at a meeting of shareholders called
for that purpose, not less than six months after the affiliated
shareholder became an affiliated shareholder.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Because we have more than 100 of record
shareholders, we are considered an &#x201C;</font><font style="text-decoration: underline; color: #000000">issuing public
corporation</font><font style="color: #000000">&#x201D; for purposes
of this law. The Texas Business Combination Law does not apply to
the following:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">the
business combination of an issuing public corporation: where the
corporation&#x2019;s original charter or bylaws contain a provision
expressly electing not to be governed by the Texas Business
Combination Law; or that adopts an amendment to its charter or
bylaws, by the affirmative vote of the holders, other than
affiliated shareholders, of at least two-thirds of the outstanding
voting shares of the corporation, expressly electing not to be
governed by the Texas Business Combination Law and so long as the
amendment does not take effect for 18 months following the date of
the vote and does not apply to a business combination with an
affiliated shareholder who became affiliated on or before the
effective date of the amendment;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">a
business combination of an issuing public corporation with an
affiliated shareholder that became an affiliated shareholder
inadvertently, if the affiliated shareholder divests itself, as
soon as possible, of enough shares to no longer be an affiliated
shareholder and would not at any time within the three-year period
preceding the announcement of the business combination have been an
affiliated shareholder but for the inadvertent
acquisition;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">a
business combination with an affiliated shareholder who became an
affiliated shareholder through a transfer of shares by will or
intestacy and continuously was an affiliated shareholder until the
announcement date of the business combination;
or</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="color: #000000">a
business combination of a corporation with its wholly owned Texas
subsidiary if the subsidiary is not an affiliate or associate of
the affiliated shareholder other than by reason of the affiliated
shareholder&#x2019;s beneficial ownership of voting shares of the
corporation.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Neither
our Certificate of Formation nor our Bylaws contain any provision
expressly providing that we will not be subject to the Texas
Business Combination Law. The Texas Business Combination Law may
have the effect of inhibiting a non-negotiated merger or other
business combination involving the Company, even if that event
would be beneficial to our shareholders.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Anti-Takeover Provisions of Our Certificate of Formation and
Bylaws</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Our
Certificate of Formation and Bylaws contain various provisions
intended to promote the stability of our stockholder base and
render more difficult certain unsolicited or hostile attempts to
take over the Company, that could disrupt the Company, divert the
attention of our directors, officers and employees and adversely
affect the independence and integrity of our business. These
provisions include:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Special
Meetings of Stockholders</font><font style="color: #000000">&#xA0;&#x2014; Our Bylaws provide that special
meetings of the stockholders may only be called by our Chairman,
President, a committee of our Board duly designated and whose
powers and authority include the power to call meetings, or upon
written notice to our Board by our stockholders holding not less
than 30% of our outstanding voting capital
stock.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Amendment
of Bylaws</font><font style="color: #000000">&#xA0;&#x2014; Our
Bylaws may be amended by our Board alone.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#xA0;</font><font style="color: #000000; font-size: 13px">&#xA0;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Advance
Notice Procedures</font><font style="color: #000000">&#xA0;&#x2014;
Our Bylaws establish an advance notice procedure for stockholder
proposals to be brought before an annual meeting of our
stockholders. At an annual meeting, our stockholders elect a Board
of Directors and transact such other business as may properly be
brought before the meeting. By contrast, at a special meeting, our
stockholders may transact only the business for the purposes
specified in the notice of the meeting.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
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</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">No
cumulative voting</font><font style="color: #000000">&#xA0;&#x2014;
Our Certificate of Formation and Bylaws do not include a provision
for cumulative voting in the election of
directors.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Vacancies</font><font style="color: #000000">&#xA0;&#x2014;
Our Bylaws provide that vacancies on our Board may be filled by a
majority of directors in office, although less than a quorum, and
not by the stockholders.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Preferred
Stock</font><font style="color: #000000">&#xA0;&#x2014; Our
Certificate of Formation allows us to issue up to 100,000,000
shares of preferred stock, of which 66,625 shares have been
designated as Series A Convertible Preferred Stock. The
undesignated preferred stock may have rights senior to those of the
common stock and that otherwise could adversely affect the rights
and powers, including voting rights, of the holders of common
stock. In some circumstances, this issuance could have the effect
of decreasing the market price of the common stock as well as
having an anti-takeover effect.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font><font style="font-style: italic; color: #000000">Authorized
but Unissued Shares</font><font style="color: #000000">&#xA0;&#x2014; Our Board may cause the Company to
issue authorized but unissued shares of common stock in the future
without stockholders&#x2019; approval. These additional shares may
be utilized for a variety of corporate purposes, including future
public offerings to raise additional capital, corporate
acquisitions and employee benefit plans. The existence of
authorized but unissued shares of common stock could render more
difficult or discourage an attempt to obtain control of a majority
of common stock by means of a proxy contest, tender offer, merger
or otherwise.&#xA0;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_DESCRIPTION_OF_WARRANTS">
<!--anchor--></a>DESCRIPTION OF WARRANTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may issue warrants for the purchase of common stock, preferred
stock or units, in one or more series. We may issue warrants
independently or together with common stock, preferred stock and
units, and the warrants may be attached to or separate from these
securities. In this prospectus, we have summarized certain general
features of the warrants. We urge you, however, to read the
applicable prospectus supplement (and any free writing prospectus
that we may authorize to be provided to you) related to the
particular series of warrants being offered, as well as the
complete warrant agreements and warrant certificates that contain
the terms of the warrants. Each issue of warrants will be the
subject of a warrant agreement which will contain the terms of the
warrants. We will distribute a prospectus supplement with regard to
each issue of warrants. Each prospectus supplement will describe,
as to the warrants to which it relates:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
securities which may be purchased by exercising the warrants (which
may be common stock, preferred stock, or units consisting of two or
more of those types of securities);</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
exercise price of the warrants (which may be wholly or partly
payable in cash or wholly or partly payable with other types of
consideration);</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
period during which the warrants may be exercised;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
number of warrants outstanding as of the date specified in the
applicable prospectus supplement;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
provision adjusting the securities which may be purchased on
exercise of the warrants and the exercise price of the warrants in
order to prevent dilution or otherwise;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
place or places where warrants can be presented for exercise or for
registration of transfer or exchange; and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;any
other material terms of the warrants.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
will evidence each series of warrants by warrant certificates that
we will issue. Warrants may be issued under an applicable warrant
agreement that we enter into with a warrant agent. We will indicate
the name and address of the warrant agent, if applicable, in the
prospectus supplement relating to the particular series of warrants
being offered.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The descriptions of the warrant agreements in this
prospectus and in any prospectus supplement are summaries of the
applicable provisions of the applicable agreements. These
descriptions do not restate those agreements in their entirety and
do not contain all of the information that you may find useful. We
urge you to read the applicable agreements because they, and not
the summaries, define your rights as holders of the warrants or any
warrant units. For more information, please review the form of the
relevant agreements, which will be filed with the SEC promptly
after the offering of the warrants or warrant units and will be
available as described in the heading &#x201C;</font><font style="text-decoration: underline; color: #000000">Where You Can Find
More Information</font><font style="color: #000000">&#x201D;
below.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">6<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_DESCRIPTION_OF_UNITS">
<!--anchor--></a>DESCRIPTION OF UNITS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may issue securities in units, each consisting of two or more types
of securities. For example, we might issue units consisting of a
combination of preferred stock and warrants to purchase common
stock or preferred stock. If we issue units, the prospectus
supplement relating to the units will contain the information
described above with regard to each of the securities that is a
component of the units. In addition, each prospectus supplement
relating to units will describe:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
designation and terms of the units and of the securities comprising
the units, including whether and under what circumstances the
securities comprising the units may be held or transferred
separately;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
terms of any unit agreement governing the units;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;the
provisions for the payment, settlement, transfer or exchange of the
units;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;whether
the units will be issued in fully registered or global
form;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;how
long, if at all, the securities that are components of the units
must be traded in units and when they can be traded
separately;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;whether
we will apply to have the units traded on a securities exchange or
securities quotation system; and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;how,
for U.S. federal income tax purposes, the purchase price paid for
the units is to be allocated among the component
securities.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The descriptions of the units in this prospectus
and in any prospectus supplement are summaries of the material
provisions that may be included in the applicable unit agreements.
These descriptions do not restate the terms of any such agreements
in their entirety and may not contain all the information that you
may find useful. We urge you to read the applicable agreements
because they, and not the summaries, will define your rights as
holders of the units. For more information, please review the form
of the relevant agreements, which will be filed with the SEC
promptly after the offering of any units and will be available as
described under the heading &#x201C;</font><font style="text-decoration: underline; color: #000000">Where You Can Find
More Information</font><font style="color: #000000">&#x201D;
below.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">7<br></font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_PLAN_OF_DISTRIBUTION">
<!--anchor--></a>PLAN OF DISTRIBUTION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may sell any of the securities being offered pursuant to this
prospectus in any manner specified in a prospectus supplement or in
any of the following manners:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;directly
to purchasers;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;to
or through underwriters;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;through
dealers or agents; or</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;through
a combination of methods.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may distribute the securities from time to time in one or more
transactions at a fixed price or prices, which may be changed, at
market prices prevailing at the time of sale, at prices related to
the prevailing market prices or at negotiated prices. We may also
determine the price or other terms of the securities offered under
this prospectus by use of an electronic auction. The securities may
be sold through an at-the-market offering or similar
arrangements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
prospectus supplement with respect to the securities being offered
will set forth the terms of the offering, including the names of
the underwriters, dealers or agents, if any, the purchase price of
the securities and the public offering price, the net proceeds to
us, any underwriting discounts and other items constituting
underwriters&#x2019; compensation, any discounts or concessions
allowed or reallowed or paid to dealers and any securities
exchanges on which the securities may be listed. Also, if
applicable, we will describe in the prospectus supplement how any
auction will determine the price or any other terms, how potential
investors may participate in the auction and the nature of the
underwriters&#x2019; obligations with respect to the
auction.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">If
underwriters are used in an offering, we will execute an
underwriting agreement with the underwriters and will specify the
name of each underwriter and the terms of the transaction
(including any underwriting discounts and other terms constituting
compensation of the underwriters and any dealers) in a prospectus
supplement. If an underwriting syndicate is used, the managing
underwriter(s) will be specified on the cover of the prospectus
supplement. If underwriters are used in the sale, the offered
securities will be acquired by the underwriters for their own
accounts and may be resold from time to time in one or more
transactions, including negotiated transactions, at a fixed public
offering price or at varying prices determined at the time of sale.
Any public offering price and any discounts or concessions allowed
or reallowed or paid to dealers may be changed from time to time.
Unless otherwise set forth in the prospectus supplement, the
obligations of the underwriters to purchase the offered securities
will be subject to conditions precedent, and the underwriters will
be obligated to purchase all of the offered securities if any are
purchased.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">If
dealers are used in an offering, we will sell the securities to the
dealers as principals. The dealers then may resell the securities
to the public at varying prices which they determine at the time of
resale. The names of the dealers and the terms of the transaction
will be specified in a prospectus supplement.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
securities may be sold directly by us or through agents we
designate. If agents are used in an offering, the names of the
agents and the terms of the agency will be specified in a
prospectus supplement. Unless otherwise indicated in a prospectus
supplement, the agents will act on a best-efforts basis for the
period of their appointment.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may engage in at-the-market offerings into an existing trading
market in accordance with Rule 415(a)(4) under the Securities Act.
In addition, we may enter into derivative transactions with third
parties, or sell securities not covered by this prospectus to third
parties in privately negotiated transactions. If the applicable
prospectus supplement so indicates, in connection with those
derivatives, the third parties may sell securities covered by this
prospectus and the applicable prospectus supplement, including in
short sale transactions. If so, the third party may use securities
pledged by us or borrowed from us or others to settle those sales
or to close out any related open borrowings of securities, and may
use securities received from us in settlement of those derivatives
to close out any related open borrowings of securities. The third
party in such sale transactions will be an underwriter and, if not
identified in this prospectus, will be named in the applicable
prospectus supplement (or a post-effective amendment). In addition,
we may otherwise loan or pledge securities to a financial
institution or other third party that in turn may sell the
securities short using this prospectus and an applicable prospectus
supplement. Such financial institution or other third party may
transfer its economic short position to investors in our securities
or in connection with a concurrent offering of other
securities.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">We
may also make direct sales through subscription rights distributed
to our existing stockholders on a pro rata basis, which may or may
not be transferable. In any distribution of subscription rights to
our stockholders, if all of the underlying securities are not
subscribed for, we may then sell the unsubscribed securities
directly to third parties or may engage the services of one or more
underwriters, dealers or agents, including standby underwriters, to
sell the unsubscribed securities to third parties.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Dealers
and agents named in a prospectus supplement may be deemed to be
underwriters (within the meaning of the Securities Act) of the
securities described therein. In addition, we may sell the
securities directly to institutional investors or others who may be
deemed to be underwriters within the meaning of the Securities Act
with respect to any resales thereof.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Underwriters,
dealers and agents may be entitled to indemnification by us against
specific civil liabilities, including liabilities under the
Securities Act or to contribution with respect to payments which
the underwriters or agents may be required to make in respect
thereof, under underwriting or other agreements. The terms of any
indemnification provisions will be set forth in a prospectus
supplement. Certain underwriters, dealers or agents and their
associates may engage in transactions with, and perform services
for, us in the ordinary course of business.</font></div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font>&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">8<br></font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
compliance with guidelines of the Financial Industry Regulatory
Authority, or FINRA, the maximum consideration or discount to be
received by any FINRA member or independent broker dealer may not
exceed 8% of the aggregate amount of the securities offered
pursuant to this prospectus and any applicable prospectus
supplement.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Each series of securities is expected to be a new
issue of securities with no established trading market, other than
the common stock which is listed on the NYSE American under the
symbol &#x201C;</font><font style="text-decoration: underline; color: #000000">PED.</font><font style="color: #000000">&#x201D;
Any common stock sold pursuant to a prospectus supplement will be
eligible for listing and trading on the NYSE American, subject to
official notice of issuance. Any underwriters to whom securities
are sold by us for public offering and sale may make a market in
the securities, but the underwriters will not be obligated to do so
and may discontinue any market making at any time without notice.
The securities, other than the common stock, may or may not be
listed on a national securities exchange.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_LEGAL_MATTERS"><!--anchor--></a>LEGAL
MATTERS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
validity of the securities offered by this prospectus will be
passed upon for us by Jones Walker LLP, New Orleans,
Louisiana.&#xA0;If legal matters in connection with offerings made
by this prospectus are passed on by other counsel for us or by
counsel for any agents or underwriters retained in connection with
an offering of securities hereunder, that counsel will be named in
the applicable prospectus supplement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_EXPERTS">
<!--anchor--></a>EXPERTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
consolidated balance sheets of PEDEVCO Corp. as of December 31,
2019 and 2018, the related consolidated statements of operations,
shareholders&#x2019; equity and cash flows for the years ended
December 31, 2019 and 2018, including the related notes,
incorporated by reference into this prospectus have been so
incorporated by reference in reliance on the reports of Marcum LLP,
an independent registered public accounting firm, given on the
authority of said firm as experts in auditing and
accounting.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
information incorporated by reference into this prospectus
regarding PEDEVCO&#x2019;s estimated quantities of proved developed
producing reserves and the future net revenues from those reserves
as of December 31, 2019 is based on the proved reserve report
prepared by Cawley, Gillespie &amp; Associates, PEDEVCO&#x2019;s
independent petroleum engineers. These estimates are incorporated
by reference in reliance upon the authority of such firm as an
expert in these matters.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_WHERE_YOU_CAN_1">
<!--anchor--></a><a name="_WHERE_YOU_CAN">
<!--anchor--></a>WHERE YOU CAN FIND MORE INFORMATION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">We file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our SEC
filings are available to the public over the Internet at the
SEC&#x2019;s website at&#xA0;</font><font style="text-decoration: underline; color: #000000">www.sec.gov</font><font style="color: #000000">.
Copies of certain information filed by us with the SEC are also
available on our website at&#xA0;</font><font style="text-decoration: underline; color: #000000">www.pedevco.com</font><font style="color: #000000">.
Our website is not a part of this prospectus and information on, or
accessible through, our website is not part of this prospectus. You
may also read and copy any document we file at the SEC&#x2019;s
Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on
the operation of the Public Reference Room.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
prospectus is part of a registration statement we filed with the
SEC. This prospectus omits some information contained in the
registration statement in accordance with SEC rules and
regulations. You should review the information and exhibits in the
registration statement for further information about us and our
consolidated subsidiaries and the securities we are offering.
Statements in this prospectus concerning any document we filed as
an exhibit to the registration statement or that we otherwise filed
with the SEC are not intended to be comprehensive and are qualified
by reference to these filings. You should review the complete
document to evaluate these statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">9<br></font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
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<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
<a name="_INCORPORATION_OF_CERTAIN_1"><!--anchor--></a><a name="_INCORPORATION_OF_CERTAIN">
<!--anchor--></a>INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
SEC allows us to incorporate by reference much of the information
we file with the SEC, which means that we can disclose important
information to you by referring you to those publicly available
documents. The information that we incorporate by reference in this
prospectus is considered to be part of this prospectus. Because we
are incorporating by reference future filings with the SEC, this
prospectus is continually updated and those future filings may
modify or supersede some of the information included or
incorporated in this prospectus. This means that you must look at
all of the SEC filings that we incorporate by reference to
determine if any of the statements in this prospectus or in any
document previously incorporated by reference have been modified or
superseded.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">This
prospectus incorporates by reference the documents listed below and
any future filings we make with the SEC under Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act (in each case, other than
those filings, documents or the portions of those documents not
deemed to be filed, including any information furnished pursuant to
Items 2.02 or 7.01 of a Current Report on Form 8-K) (i) after the
date of the initial registration statement and prior to
effectiveness of the registration statement and (ii) after the
effectiveness of the registration statement until the offering of
the securities under the registration statement is terminated or
completed:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our&#xA0;<font><a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420003503/ped_10k.htm"><font style="text-decoration: underline;">Annual
Report on Form 10-K for the year ended December 31,
2019</font></a>, filed with the SEC on March 30, 2020, including
information specifically incorporated by reference into
such&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420007575/ped_def14a.htm"><font style="text-decoration: underline;">Annual
Report on Form 10-K from our&#xA0;Definitive Proxy Statement on
Schedule 14A&#xA0;filed with the SEC on July 10,
2020</font></a>;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our&#xA0;<font><a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420005636/ped_10q.htm"><font style="text-decoration: underline;">Quarterly
Report on Form 10-Q for the quarter ended March 31,
2020</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420009177/ped_10q.htm"><font style="text-decoration: underline;">Quarterly
Report on Form 10-Q for the quarter ended June 30,
2020</font></a>&#xA0;and&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420012487/ped_10q.htm"><font style="text-decoration: underline;">Quarterly
Report on Form 10-Q for the quarter ended September 30,
2020</font></a>;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Our
Current Reports on Forms 8-K (other than information furnished
rather than filed) filed with the SEC on&#xA0;<font style="color: #000000"><font><a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420000484/ped_8k.htm"><font style="text-decoration: underline;">January
16, 2020</font></a>,&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420003610/ped_8k.htm"><font style="text-decoration: underline;">March
31, 2020</font></a></font>&#xA0;and&#xA0;<font><a href="http://www.sec.gov/Archives/edgar/data/1141197/000165495420009659/ped_8k.htm"><font style="text-decoration: underline;">August
31, 2020</font></a></font>; and</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;The
description of our common stock contained in our&#xA0;<a href="http://www.sec.gov/Archives/edgar/data/1141197/000135448813005071/pedo_8a12ba.htm"><font style="text-decoration: underline;">Registration
Statement on Form 8-A/A</font></a>, filed with the SEC on September
5, 2013 (File No. 001-35922) pursuant to Section 12(b) of the
Exchange Act, including any amendment or report filed for the
purpose of updating such description.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">These
documents contain important information about us, our business and
our financial condition. We will provide to each person, including
any beneficial owner, to whom this prospectus is delivered, upon
written or oral request and without charge, a copy of the
incorporated documents referred to above. You may request a copy of
such documents by writing or telephoning us at:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PEDEVCO Corp.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
575 N. Dairy Ashford</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Energy Center II, Suite 210</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Houston, Texas 77079</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
(713) 221-1768</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Those
copies will not include exhibits unless the exhibits have
specifically been incorporated by reference in this documents or
you specifically request them.&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">10<br></font></div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline; color: #0000FF; font-size: 13px">
<br></font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
$3,600,000</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="ped1.jpg"></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
PEDEVCO Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Stock</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: solid 2px #000000">
<!--Rule Below Paragraph--></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
PROSPECTUS SUPPLEMENT</font>&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: solid 2px #000000">
<!--Rule Below Paragraph--></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Lead Agent</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Roth Capital Partners</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Co-Agent</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
EF Hutton</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
division of Benchmark Investments, LLC</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">November
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