- Permex Petroleum Corporation (OIL) has signed a deal to acquire a large-scale oil and gas asset in the core of the Permian Basin of West Texas
- The company is acquiring the Mabee Breedlove Clearfork Unit, Mallard Breedlove lease, Carter Clearfork lease and Erwin Eoff lease
- Together, the assets make up a combined 7,800 acres
- The company is acquiring the assets for US$2.0 million in an all-stock transaction
- There is a total of 25 vertical wells of which 12 are producers, four are saltwater disposal wells and nine are shut-in opportunities
- Permex Petroleum Corporation is up 19.23 per cent, trading at $0.16 at 1:47 pm ET
Permex Petroleum (OIL) has signed a PSA to acquire a large-scale oil and gas asset in the Permian Basin of West Texas.
The Vancouver-based company is acquiring the rights, title and interest in the Mabee Breedlove Clearfork Unit, Mallard Breedlove lease, Carter Clearfork lease and Erwin Eoff lease located in Martin County, Texas.
The properties are over 12 contiguous sections for a total of 7,870.23 Gross and 7,741.67 Net acres, of which 98 per cent is held by production in the core of the Permian Basin.
There is a total of 25 vertical wells of which 12 are producers, four are saltwater disposal wells and nine that are shut-in opportunities.
The company has signed a definitive Purchase and Sale Agreement with Pratt Oil Company, Rockport Permian, and Petro America Resources.
Permex will take over 100 per cent working interest and 81.75 per cent Net Revenue Interest (NRI) in the oil and gas assets. The company is acquiring the assets for US $2.0 million in an all-stock transaction.
“This acquisition is directly in line with our strategy of acquiring and developing high-quality assets with outstanding economics in the Permian Basin, one of the most vital energy producing regions in the U.S. With an average operating breakeven price of $28.14 per barrel over the past 12 months, this acquisition has an extremely low production risk and high profitability margin associated with it. Given the fact that companies such as Diamondback Energy are continuously drilling and producing daily volumes in excess of 1,200 barrel of oil equivalent (BOEPD) per well from the Spraberry formation directly adjacent to the lease, our technical team is quite excited to begin evaluation of that opportunity zone so that Permex can begin its drilling program.
By nearly tripling our acreage footprint of oil and gas assets, we are closely reaching an inflection point in our operational strategy, ultimately positioning Permex for sustainable, long-term growth,” said Permex President and CEO Mehran Ehsan.
Permex management believes significant additional up hole and down hole formations and zones exist in the field, including the San Andres formation across the entire acreage and the well sought-after Spraberry formation across a portion of the acreage.
Permex will take over 100 per cent working interest and 81.75 per cent Net Revenue Interest (NRI) in the oil and gas assets. The company is acquiring the assets for US$2.0 million in an all-stock transaction.
Permex Petroleum Corporation is up 19.23 per cent, trading at $0.16 at 1:47 pm ET.
