a Vision For The Junior Oil and Gas Company’s Future

DALLAS, TX / ACCESSWIRE / February 17, 2023 / Permex Petroleum Corporation was founded in 2017 as a junior oil and gas company based in Texas and New Mexico. Three specific criteria made their business profitable in their industry: the timing of profitable land acquisitions, the geography and geology of their acquired land, and the structure of their business.

All of Permex Petroleum’s land was acquired during a negative time period for oil. Generally during these times businesses stray from purchasing land, but for Permex, it was the perfect time to secure their foundation as a business. They own and operate oil and gas assets on private, state, and federal land in New Mexico & Texas.

Since 2018, Permex has been a publicly traded company. In June of 2018, Permex acquired 1,220 acres of land next to a large Cap company in Texas. The transaction was finalized in July at a total of 6,500 acres. Within that same month, an additional acquisition of 840 acres was successfully made in New Mexico.

Two advisory board members were also added in August 2018: Peter Dorrins and Dianna Goldstein. Dorrins is a geologist with 38 years of experience in the oil and gas industry. Goldstein is a reservoir engineering technologist with 20 years of experience. Permex has been described as having a small team, but their members are very qualified and successfully help them compete with bigger competition.

Permex proudly reported production increases from EOR practices in Texas. This tactic resulted in a 20% increase of oil. The following month, Permex completed their model for EOR waterflooding, which included 3 injector conversions that were suggested. In October 2018, that modeling was put into use at another property.

Credit: Permex Petroleum Corporation

Also within that same month, Permex received a 5 million dollar loan with RC Morris Capital Management. The initial loan was for 2 million dollars, but additional funds were planned to be given if the contract requirements were fulfilled.

Permex went on to announce an additional member, who was added to their advisory board. Doug Urch is a Certified Public Accountant with 35 years of experience in the oil and gas industry. His specialized expertise allowed for a seamless integration into the team.

Permex released their annual CEO Letter to Shareholders at the beginning of January 2019. Within the letter, CEO, Mehran Ehsan gave a performance review and spoke about his priorities for the future. His main goal was to value current shareholders, achieve more land acquisition, and scale the drilling operations on their wells to produce more oil flow.

For the year of 2019, Permex opened a new office in Dallas, which is now their headquarters. In the third quarter, they reported that they had a 242% increase in revenue for the same time period in 2018. By 2020, Permex had reported another addition to the advisory board members: Greg Montgomery, who is an experienced business consultant.

Before 2020 ended, CEO Mehran Ehsan announced a positive agreement with a private, Texas-based oil and gas company. This partnership helped Permex make efforts to divest their Permian Basin properties. Once the transaction, valued at 1.3 million dollars, was completed, Permex stood in a prominent financial position, with a debt-free balance sheet.

Permex acquired multiple royalty interest assets that include horizontal and natural gas wells in Texas at the beginning of 2021. These wells have been approximated to produce around 10,000 barrels of oil a day and will be a monumental financial asset for them to expand upon. Only 7 months later, Permex has acquired another impressive property: 7,800 acres of land in Texas for 2 million dollars.

Wrapping up the year of 2021, Permex outlined their results for an independent reserve valuation. This valuation is done annually and the numbers must be verified by government entities. Before income tax, the proved reserves were approximated to be worth 289 million dollars. These numbers are high for Permex’s junior status in their industry, which highlights the bright future ahead of them.

CEO, Mehran Ehsan spoke about the direction he plans to take Permex Petroleum, “Permex is a junior company that’s scalable. Although we’re a junior company, we operate like a large company because we have faith in Permex’s future to scale. We move forward in a straight line towards clear goals and while using the core pillars we have developed in our business; like our geographical expansion that we can use to touch on how we’re moving in the right direction. We are just starting to drill our fields out. We haven’t even begun growing this company.”

About Permex Petroleum Corporation

Permex Petroleum Corp is a junior oil and gas company with headquarters in Dallas, Texas, United States. Their wells are strategically located in the Permian Basin across Texas and in the Delaware Sub-Basin of New Mexico on private, state, and federal land. Permex Petroleum prioritizes sustainable, scale growth projects by leveraging their unique assets and ownership structure.

Media Contact: RedChip

Name: Dave Gentry

Email: [email protected]

SOURCE: Permex Petroleum Corporation