Brutally Undervalued
2021-11-30 19:44 ET - News Release
Mr. Mehran Ehsan reports
PERMEX PETROLEUM CORPORATION CONFIRMS 24.5 MILLION BARRELS OF OIL EQUIVALENT OF RESERVES ON ITS PERMIAN BASIN ASSETS
Permex Petroleum Corp. has completed its independent reserve evaluation, including its newly acquired Breedlove B Clearfork asset, effective Sept. 1, 2021, in compliance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) and in accordance with the Canadian oil and gas evaluation handbook.
Reserve evaluation
The net present value of net future revenues (net of royalties, operating costs and capital expenditures, including asset retirement obligations) before income tax, discounted at 10 per cent, of the total proven plus probable reserves, is estimated at $289.3-million, or $4.25 per outstanding share (basis):
- Reserves comprise 89 per cent light oil and 11 per cent natural gas;
- Total proven reserves of 8.7 million barrels of oil equivalent and PV10 value of $131-million, an increase of 300 per cent year over year;
- Total probable reserves of 15.7 million boe and PV10 value of $157-million, an increase of 340 per cent year over year;
- Total proven plus probable reserves of 24.5 million boe and PV10 value of $289.3-million, an increase of 320 per cent year over year.
(1) Natural gas: 6,000 cubic feet per boe
(2) Report used McDaniel & Associates' price forecast, effective Sept. 30, 2021.
"We are encouraged that the independently prepared reserve evaluations on our recently acquired assets confirm our initial internal evaluation of the large reserves in place, with long-life production of the Breedlove asset," said Barry Whelan, chief operating officer of Permex. "Permex's focus now is to drill and develop the 7,800 acres while redeploying the expected strong cash flow from the completed wells back into drilling programs. We look forward to quickly and efficiently ramping up our drilling operations to drive organic growth for our company and sustainable value for our shareholders."
About Permex Petroleum Corp.
Permex Petroleum is a uniquely positioned junior oil and gas company with assets and operations across the Permian basin of West Texas and the Delaware subbasin of New Mexico. The company focuses on combining its low-cost development of held-by-production assets for sustainable growth with its current and future blue-sky projects for scale growth. The company, through its wholly owned subsidiary, Permex Petroleum U.S. Corp., is a licensed operator in both states; and owns and operates on private, state and federal land.