Permex Petroleum Corporation Signs Transformational LOI to Acquire a 7,800-Acre Oil & Gas Asset in the Permian Basin of West Texas
Vancouver, British Columbia, September 13, 2021 – Permex Petroleum Corporation ("Permex" or the "Corporation") (CSE: OIL) (OTCQB: OILCF), a leading junior oil and gas company, has entered into a non-binding Letter of Intent (“LOI”) with an arms-length third party independent seller(s), for the purchase of all the seller’s rights, title, 3D seismic data and interests in their oil and gas assets located in Martin County, Texas. Under the terms of the LOI, the purchase price will be for USD $2.0 million in an all-stock transaction.
Pursuant to the acquisition, Permex will acquire 100% Working Interest (“WI”) with an average 81.75% net revenue interest (“NRI”) in 7,870.23 gross acres in the Permian basin of West Texas. Of the 7,870.23 acres being acquired, over 98% is considered held by production (“HBP”), meeting Permex’s strict internal HBP acquisition requirements. The acreage also contains dozens of drill sites which are allowable under the spacing requirements, which could also be utilized to increase and enhance the recovery of the hydrocarbons in the producing reservoir.
“The primary purpose of an oil and gas company is to continuously add to its land holdings, increase reserves, transition reserves from ‘Probable’ to ‘Proved’ to ‘Producing’, which ultimately, drives shareholder value. We believe this transaction checks all of the above,” said Mehran Ehsan, President and CEO of Permex. “This acquisition will not only add reserves and production, but further Permex’s strategy of building a scalable portfolio of free cash-flow generating assets that offer attractive opportunities to allocate capital for both near and long-term development.”
A full disclosure of the assets, transaction and opportunity will be announced upon execution of the definitive agreement between the parties.
About Permex Petroleum Corporation
Permex Petroleum (CSE:OIL) (OTCQB:OILCF) is a uniquely positioned junior oil & gas company with assets and operations across the Permian Basin of West Texas and the Delaware Sub-Basin 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 US Corporation, is a licensed operator in both states; and owns and operates on Private, State and Federal land. For more information, please visit www.permexpetroleum.com.
CONTACT INFORMATION
Permex Petroleum Corporation
Mehran Ehsan
President, Chief Executive Officer & Director
(214) 459-2782
Scott Kelly
CFO, Corporate Secretary & Director
(778) 373-2525
Or for Investor Relations, please contact:
Brooks Hamilton
[email protected]
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Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE, OTC Markets nor their Regulation Services Providers (as that term is defined in the policies of either exchange) accepts responsibility for the adequacy or accuracy of this release.