Permex Petroleum Corporation Reports Successful Production from Second Recompleted Well on New Mexico Property
Vancouver, British Columbia--(Newsfile Corp. - April 5, 2022) - Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCF) (FSE: 75P) ("Permex" or the "Company"), a leading junior oil and gas company, announced the successful results obtained from the recompletion of a previously shut-in oil well on its West Henshaw property in Eddy County, New Mexico.
The results are from well #6-10 on the West Henshaw property, which is one of the 69 shut-in wells Permex currently owns, and represent the second successful well recompletion by the Company this year. The Company's re-entry and re-stimulation programs involving Company's the wells on the West Henshaw property began in January 2022, and are targeting the Grayburg formation at a depth of 2,850 feet.
The recompletion of well #6-10 was successful and came online at an initial rate of 15 barrels of oil per day and now has stabilized at 10 barrels of oil per day. Management believes the production rates from this mature, long-life well, will continue with less than 5% decline year on year. The remaining 67 shut-in wells that the Company plans to re-enter may have potential to yield similar results increasing the Company's total daily production solely by re-entering shut-in wells.
"We continue to ramp up production through low-risk, low-cost opportunities, as reflected by the second successful well recompletion since beginning our pilot re-entry in January," said Mehran Ehsan, CEO of Permex Petroleum. "With very attractive well economics of $35.86/barrel in operating net back at West Texas Intermediate ("WTI") oil prices at $65/barrel, and with current WTI oil prices nearing $100/barrel on a trailing 50-day moving average, we believe Permex is capitalizing on this strong market. We also believe that we are now well capitalized with our recently closed US$7.5 million private placement and are prudently deploying capital to aggressively, and methodically, execute our strategy to drive sustainable growth for our stakeholders."
Permex's team now intends to move on to the next shut-in wells as well as to activate the Company's waterflood enhanced oil recovery candidates as part of the Company's developmental plans, which the Company believes are focused on sustainable growth.
About Permex Petroleum Corporation
Permex Petroleum (CSE: OIL) (OTCQB: OILCF) (FSE: 75P) 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.
Permex Petroleum Corporation
President, Chief Executive Officer & Director
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CAUTIONARY DISCLAIMER STATEMENT:
The Canadian Securities Exchange has neither approved nor disapproved the contents of this press release.
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding Permex's proposed targets of its re-entry and re-stimulation program, the production rate of well #6-10 on the West Henshaw property, the potential production of remaining shut-in wells owned by the Company, the market opportunity in the oil and gas industry, Permex's future plans with shut-in wells, the deployment of the Company's capital and the Company's waterflood enhanced oil recovery candidates.
In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Permex which have been used to develop such statements and information but which may prove to be incorrect. Although Permex believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Permex can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Permex will continue to conduct its operations in a manner consistent with past operations; continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Permex's reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Permex's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Permex operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Permex to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of Permex to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Permex operates; and the ability of Permex to successfully market its oil and natural gas products.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
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