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The transaction almost tripled the footprint of Permex’s production assets to approximately 12,000 acres
Vancouver, British Columbia-(Newsfile Corp.-October 4, 2021)-Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCF) (“Permex” or”company“), a leading junior oil and gas company, has signed a final sale and purchase agreement (“PSA“) and Pratt Oil Company, LLC, Rockport Permian, LLC and Petro America Resources, LLC (“Seller”) Used to purchase sellers in Mabee Breedlove Clearfork Unit, Mallard Breedlove lease, Carter Clearfork lease and Erwin Eoff lease (ie “assets”) Located in Martin County, Texas.
These properties have more than 12 consecutive sections with a total area of 7,870.23 acres and 7,741.67 acres, 98% of which are held by Permian Basin Core Production (“HBP”). There are 25 vertical wells, of which 12 are production wells, 4 are brine treatment wells (“SWD”), and 9 are shut-in opportunities.
Permex Petroleum President and CEO Mehran Ehsan said: “This acquisition is directly in line with our strategy of acquiring and developing high-quality assets with outstanding economic conditions in the Permian Basin (one of the most important energy producing regions in the United States).” The 12-month average operating break-even price is US$28.14 per barrel. This acquisition has extremely low production risks and high profit margins associated with it. Given that companies such as Diamondback Energy have a stake in the Spraberry formation directly adjacent to the lease With wells exceeding 1,200 barrels of oil equivalent (“BOEPD”), our technical team is pleased to begin assessing this opportunity area so Permex can begin its drilling program. By nearly three times the area footprint of our oil and gas assets, we are approaching The turning point in our operating strategy ultimately enabled Permex to achieve sustainable long-term growth.”
The field is currently produced in the Clearfork formation at a depth of approximately 7,000 feet, which contains the upper, middle, and lower Clearfork areas within the lease boundary. Permex management believes that there are a large number of additional uphole and downhole formations and areas in the field, including the entire San Andrés formation and part of the popular Spraguey formation. In addition to the evaluation by Permex’s in-house engineers, Permex also hired an independent engineering company to further evaluate the reserves of assets other than the proven development and production (“PDP”) reserves associated with the Clearfork formation identified by the previous operator.
Permex will take over 100% working interest (“WI”) and 81.75% net income interest (“NRI”) of oil and gas assets. According to the terms of the PSA, the company will acquire assets at a price of US$2 million for an all-stock transaction of 0.10 Canadian dollars per share and 1/2 all-stock transaction at a price of 0.20 Canadian dollars for a total of 25,000,000 shares and 12,500,000 stock options. certificate. The expiration date of the warrants is October 1, 2031, but the company may accelerate on or after the third anniversary of the issuance date.
The final PSA is after the initial execution of the non-binding letter of intent (“LOI”) announced by the company on September 13day, 2021.
About Permex Oil Company
Permex Petroleum (CSE: OIL) (OTCQB: OILCF) is a uniquely positioned primary oil and gas company with assets and operations in the Permian Basin of West Texas and the Delaware Sub-basin of New Mexico. The company focuses on combining the sustainable growth of its Held by Production assets developed at low cost with its current and future Blue-Sky projects to achieve scale growth. The company, through its wholly-owned subsidiary Permex Petroleum US Corporation, is the licensed operator in these two states; and it owns and operates on private, state and federal land.For more information, please visit www.permexpetroleum.com.
contact information
Permex Petroleum Corporation
Mehran Ethan |
President, CEO and Director
(214) 459-2782
Scott Kelly
Chief Financial Officer, Company Secretary and Director
(778) 373-5421
Or for investor relations, please contact:
Brooks Hamilton
OILCF@mzgroup.us
Warning disclaimer:
Neither the Canadian Stock Exchange, OTCMarkets, or their regulatory service providers (as this term is defined in their respective policies) accepts responsibility for the adequacy or accuracy of this press release.
Forward-looking statements
The information in this press release may involve forward-looking statements under applicable securities laws. The entire contents of the forward-looking statements contained herein are clearly limited by this cautionary statement. The forward-looking statements contained in this document were made on the date of publication of this document, and the company does not undertake any intent or obligation to update or revise any forward-looking statements, whether due to new information, future events or other reasons, unless applicable Clear requirements of securities laws and regulations. Although management believes that the expectations contained in such forward-looking statements are reasonable, it cannot guarantee that such expectations will prove to be correct. This press release does not constitute an offer to sell or solicit to purchase any of the securities described herein, and therefore should not be overly relied on. Neither CSE, OTC Markets nor their regulatory service providers (this term is defined in the policies of any exchange) is not responsible for the adequacy or accuracy of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/98407
Source: Press file
Version number: 40664
There is no offer to sell, no invitation to buy, and no recommendation for any securities or any other products or services in this article. In addition, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or securities, or participate in any investment strategy or transaction. You are responsible for determining whether any investment, investment strategy, securities or related transactions are suitable for you based on your investment objectives, financial situation and risk tolerance. Regarding your specific business, legal or tax situation, please consult your business adviser, lawyer or tax adviser.
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