Permex Petroleum Corporation Confirms 24.5 Million Barrels of Oil Equivalent of Reserves on its Permian Basin Assets
Independent Evaluation Provides Estimated Total Proved & Probable Reserves Hold a Net Present Value of $289.3 million, Representing an Increase of 320% Year-over-Year
Vancouver, British Columbia, November 30, 2021 – Permex Petroleum Corporation ("Permex" or the "Company") (CSE: OIL) (OTCQB: OILCF), a leading junior oil and gas company, has completed its independent reserve evaluation, including its newly acquired Breedlove “B” Clearfork Asset, effective September 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% (“NPV 10%” or “PV10”) of the total proved plus probable reserves is estimated at $289.3 million, or $4.25 per outstanding share (basis).
- Reserves comprise of 89% light oil, and 11% natural gas
- Total Proved Reserves of 8.7 million BOE and PV10 value of $131 million, an increase of 300% Year-over-Year
- Total Probable Reserves of 15.7 million BOE and PV10 value of $157 million, an increase of 340% Year-over-Year
- Total Proved & Probable Reserves of 24.5 million BOE and PV10 value of $289.3 million, an increase of 320% Year-over-Year
Summary of Net Oil and Gas Reserves and Net Present Value of Revenue:
Before Income Taxes as of September 30, 2021 - Forecast Prices and Costs
| Reserves Mboe |
NPV 10% ($ thousand) |
NPV per BOE $/boe | |
| Proved Developed Producing | 464.1 | 7,979.8 | 17.19 |
| Total Proved | 8,748.1 | 131,936.1 | 15.08 |
| Proved Plus Probable | 24,459.9 | 289,347.1 | 11.83 |
- Natural Gas: 6.0 Mcf/boe
- Report used McDaniel’s & Associates price forecast effective September 30, 2021
Summary of Net Oil and Gas Reserves
| Light & Medium Oil |
Natural Gas |
Natural Gas Liquids |
Total BOE |
|
| RESERVE CATEGORY | Mbbl | MMcf | Mbbl | Mbbl |
| Proved Developed Producing | 411 | 319 | 0 | 464 |
| Proved Non-Producing | 205 | 98 | 0 | 221 |
| Proved Undeveloped | 7,531 | 3,189 | 0 | 8,063 |
| Total Proved | 8,147 | 3,606 | 0 | 8,748 |
| Probable | 13,850 | 11,170 | 0 | 15,712 |
| Proved plus Probable | 21,997 | 14,776 | 0 | 24,460 |
“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 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) 373-5421
Or for Investor Relations, please contact:
Brooks Hamilton
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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.