- Permex Petroleum Corporation (OIL) has acquired the Breedlove “B” Field in Martin County, Texas
- Permex now holds 100 per cent working interests in the Mabee Breedlove Clearfork Unit, Mallard Breedlove lease, Carter Clearfork lease and Erwin Eoff lease located in Martin County, Texas
- Reserve growth is expected to be more than 240 per cent through the Clearfork formation alone
- Over 28 proven undeveloped drilling locations and over 19 probable drilling locations have been identified to support long-term development
- These additional locations could potentially add $159 million of PV-10 value at a price of $65 per barrel of oil equivalent
- Permex Petroleum Corporation (OIL) is up 7.81 per cent and is trading at $0.345 per share at 3:10 p.m. ET
Permex Petroleum Corporation (OIL) has acquired the Mabee Breedlove Clearfork Unit, Mallard Breedlove lease, Carter Clearfork lease and Erwin Eoff lease in Texas.
The acquisition of these assets in Martin County enhances Permex’s financial and operational strength through the addition of a high-quality and low decline light oil asset base that is projected to generate free cash flow as workover and drilling programs are implemented.
The strategy is to acquire and develop undervalued, low-risk opportunities that support the building of a strong portfolio with strategic development upside.
The Martin County assets are currently producing from the ClearFork formation, however other formations are available under the leases for further development.
Reserve growth is expected to be more than 240 per cent through the Clearfork formation alone.
Additional reserves will be booked upon further independent evaluation of the San Andres and Spraberry zones on the leases
Over 28 proven undeveloped drilling locations and over 19 probable drilling locations have been identified to support long-term development.
These additional locations could potentially add $159 million of PV-10 value at a price of $65 per barrel of oil equivalent.
It allows exposure to a multi-zone asset base concentrated in the formations with a large, identified low-risk drilling inventory of highly economic light oil plays, significant workover opportunities, and competitive forecast returns.
Mehran Ehsan, CEO of Permex Petroleum, commented,
“This property not only provides additional drilling, re-entry and EOR opportunities, but also brings sufficient production to support future revenue and cash flow to strengthen our balance sheet.”
Permex Petroleum Corporation (OIL) is up 7.81 per cent and is trading at $0.345 per share at 3:10 p.m. ET.