The world of oil and gas has been fascinating to watch recently as issues with the global supply chain and ongoing war with Russia and Ukraine have seen prices hit decades-long highs, leading the U.S. government to tap into its strategic reserves and URGE domestic producers to up their capacity.
Permex Petroleum is focused on its assets and operations in the Permian Basin of West Texas and the Delaware Sub-Basin of New Mexico. The Dallas-based junior explorer is licensed in both states and currently looking to scale up.
Joining us today to learn a little more about the world of oil is CEO Mehran Ehsan
Thank you so much for joining us.
TMH: To start off, you recently commenced drilling operations at your Breedlove Field prospect in Martin County, Texas, could you tell us how that is going?
ME: We actually began spudding the well in September and have now gone ahead and drilled to the depth that we wanted to achieve out of 8,100 feet. In fact, we have begun logging and completed the logging sequence of the wellbore, and the results are exceptional. We have found multiple zones that we will proceed with perforation and completion in the next couple of weeks come. So November, we can anticipate completing this first well that we have drilled on our Breedlove B field in Martin County.
TMH: With this new oil field in the mix, you have several different properties in your portfolio, what’s your focus going to be on for the rest of this year?
ME: We will continue focusing on our stimulation program and rework our previously shudden in wellbores. The results have been around 48% to 50% increase in production. So we will continue doing those, but our main focus will be to take the results achieved from this drilling program and duplicate them across the field. We have 7,880 acres in Harton County at 40 acres spacing we can drill quite a few wells should this result come favourable as we suspect it will.
TMH: You recently saw a 48% production increase. Do you hope to keep that number in the coming months, or is it a goal to surpass it?
ME: There are decline curves associated after you do bring stimulation programs online. What you do to proceed to do is bring knee wells on. So we will continue to try to get ahead of that and bring additional stimulation programs and optimization programs as rework on these wellbores. So the quick answer is yes, we will.
TMH: I know management has started its Enhanced Oil Recovery Study or E-O-R on the Clearfork formation, Is there any new information about this you can divulge before the news gets officially published?
ME: At this time? No, unfortunately, we cannot until the report is divulged. What I can mention is it’s an extensive study across 7,880. The clear fork formation has three different zones, upper, middle, and lowers clear fork. We are analyzing it more to do with the shale component, which is the underlying clear fork in that region. I anticipate our engineers will be done with the report in the next couple of weeks. Once published, we can disclose further data.
TMH: Let’s dive into the realm of sustainability and the term ‘clean oil,’ what are your thoughts or insights on the bigger push we’ve seen in the media over the past decade or so, and what is Permex doing in terms of this discussion?
ME: I believe we’re taking the right steps toward protecting our environment. I think we should. I don’t believe that we should push fossil fuels aside and focus on wind, solar, and bio only on those, What we should do is create a more favourable and cleaner method of extracting fossil fuels to begin with. So I believe everyone within our industry is focusing on that. You’re noticing Occidental Petroleum coming out and saying they are do doing CO2 capturing for their own Ter terrier recovery, which essentially is instead of producing CO2, they take the CO2 out of the atmosphere and inject that into the actual ground to generate additional production of oil. These are methods that we continuously monitor in our industry. Permex is ahead of it as well. We do have solar panels on some of our wellbores that generate and produce oil. So we all do our part in making the environment safer, but I do believe this sector needs to continuously evolve and make it better.
TMH: Is there anything else you’d like to mention that we haven’t touched on or that is important for your viewers or investors to know?
ME: I think we’ve covered it, Daniella.
Well thank you again for joining us at The Market Herald Mehran, we look forward to keeping an eye on things and chatting with you again soon.
Permex Petroleum is trading on the CSE under the very appropriate symbol OIL. You can also visit them at permexpetroleum.com for more info on their projects.
I’m Daniella Atkinson for The Market Herald. Thanks for watching Top Line.
FULL DISCLOSURE: This is a paid article produced by The Market Herald.