Dome Energy AB. Provides Operational Update And Receives Term Sheet For Merger Financing

Dome Energy AB. (https://www.domeenergy.com) (Ticker:
DOME (http://www.nasdaq.com/symbol/els/dome)) is pleased to provide an
operational update on its development programs along with an update on it´s
ongoing merger process with Pedevco.

Dome Energy AB’s Future
Once the merger is concluded, Dome Energy AB will become a large shareholder of
Pedevco. Dome´s management will then seek shareholder approval to distribute
these shares to our shareholders. The process of distribution could take as much
as 6 months. Once the schedule is known, The Company will release a detailed
schedule for the process. The intention is to distribute the shares in Pedevco
to Dome Energy AB’s shareholders without tax implication according to Lex Asea.
If it is still possible to thereafter continue Dome Energy AB with a new
business after distributing the shares then the Company will look to close an
LOI for the new proposed business for Dome Energy AB. If it is not possible to
continue the company without tax implications for the shareholders then the
Company will be liquidated after distributing the shares.

Term Sheet & Merger Process Update
As part of the merger process, Dome and it´s merger partner has sought to raise
additional capital to aggressively expand operations and to repay existing high
interest debt. The Company has received a term sheet for financing which it is
currently reviewing. If satisfactory, the Company aims to close the financing
agreements within 6-8 weeks.

Due to US Securities and Exchange Commission compliance requirements, the merger
must be concluded by the middle of November otherwise Dome will have to provide
Q3 financials thus delaying the merger process. At present, we believe that we
will close the transaction in November.

Operational Update
As part of the Company´s existing strategic plan, Dome is continuing the
development of its asset base. Work on our corner stone asset, the Orange field,
has continued with the successful recompletion on the Sun B lease. The well
flowed at 60 BOPD during the initial period with work underway to put the well
on full production. We believe, the well will add ~25,000 barrels to our
producing reserves.

The next stage of the Orange program will see the re-drilling of the Sun Fee
lease. During the previous attempt, the well incurred a blow-out but it was
deemed not to be the fault of Dome therefore through insurance cover the Company
is fully covered for the cost of drilling the new well. The Company is required
to start drilling before December 17 in order to be covered by the Company´s
insurance policy. The well will target the same Miocene sands that indicated
outstanding potential in the previous unsuccessful well.

In Kentucky, gas production has seen several disruptions and inconsistencies
over the last 12 months whilst we integrate new wells to the existing
infrastructure. The Company has reviewed the production and operations. In order
to boost production and regulate line pressures better, Dome is installing
several new compressors in different areas of the field. To date, production has
increased by 50% but we expect this to increase by over 100% once we have
correct compression.

Following a technical review of the Vistatex portfolio, Dome has decided to
undertake a re-completion program on the Mikeska field, Texas. The re-completion
program is scheduled to be completed by the end of October with production
potentially adding in excess of 100 BOEPD. The Company believes that it has
located several development leads within the Vistatex portfolio and is currently
accessing the next development targets.

Colorado Drilling Program
Dome understands that the Colorado drilling program, which Dome has agreed to
acquire a 25% working interest, has been completed. Subject to formal approval
from our bank, Dome will be assigned the leases, this is expected within the
next 7 days. Thereafter, the Company expects to be able to report production to
the market. Dome believes that net production will come closer to our target of
2,000 BOEPD.

Chief Executive Officer, Paul Morch, stated: “With our development programs
continuing to yield good results and having received a term sheet for the merger
we are taking the right steps towards our goals. We remain confident of the
merger process and will endeavor to complete the process.”

For further information please contact:

Susanna Helgesen
Phone: +46 708 27 86 36
US phone: +1 281 558 8585
E-mail: sh@domeenergy.com

About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on the
Nasdaq OMX First North exchange in Sweden (Ticker:
DOME (http://www.nasdaq.com/symbol/els/dome)). Mangold Fondkommission AB is the
Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s
focus is on the development and production of existing onshore Oil & Gas
reserves in the United States. For more information visit www.domeenergy.com.