Permex Petroleum Provides Updated Reserve Report Confirming 27 Million Barrels of Oil Equivalent on its Permian Basin Assets

Source Press Release
Company Permex Petroleum Corporation 
Tags Reserve Update, Capital Spending, Upstream Activities
Date February 21, 2023

Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCD) (FSE: 75P) (“Permex” or the “Company”), an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties on private, state and federal land in the United States, has received an updated independent reserve evaluation from MKM Engineering (the “Reserve Report”), effective November 21, 2022, that uses proved and probable reserve classifications that conform to the criteria established by the United States Securities and Exchange Commission (the “SEC”).

Reserve Evaluation

According to the Reserve Report, 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 $428 million, or $221.53 per outstanding share (basis).

  • Reserves comprised of 93% light oil, and x7% natural gas
  • Total Proved Reserves of 9.2 million BOE and PV10 value of $198 million, an increase of 51% Year-over-Year
  • Total Probable Reserves of 17.8 million BOE and PV10 value of $230 million, an increase of 46% Year-over-Year
  • Total Proved & Probable Reserves of 27.0 million BOE and PV10 value of $428 million, an increase of 48% Year-over-Year

Summary of Net Oil and Gas Reserves and Net Present Value of Revenue:

Before Income Taxes as of September 30, 2022 - Forecast Prices and Costs

  Reserves Mboe  NPV 10%
($ thousand) 
NPV per BOE $/boe 
Proved Developed Producing  730.8  12,057.6  16.50 
Total Proved  9.238.3  198,619.1  21.49 
Proved Plus Probable  27,014.2  428,186.5  15.85 

  1. Natural Gas: 5.98 Mcf/boe
  2. Report used McDaniel's & Associates price forecast effective September 30, 2022

“This Reserve Report reconfirms the large reserves in place, and we remain focused on drilling and developing while redeploying the expected strong cash-flow from the completed wells back into drilling programs,” said Mehran Ehsan, President and CEO of Permex. “We look forward to providing additional updates as we continue to ramp up our drilling operations to drive organic growth for our Company and sustainable value for our shareholders.”

The Reserve Report uses prices calculated using oil and natural gas price parameters established by current guidelines of the SEC and accounting rules based on the unweighted arithmetic average of oil and natural gas prices as of the first day of each of the 12 months ended on the given date. A full copy of the Reserve Report was filed with the SEC as an exhibit to the Company’s Form 10-K for the year ended September 30, 2022.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd