Permex Petroleum Corporation Reports Successful Production from Recompleted Well on New Mexico Property
Vancouver, February 22, 2022 - Permex Petroleum Corp. (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.
In January 2022, Permex began the pilot re-entry on the West Henshaw well #15-3, one out of the 69 shut-in wells it currently owns. The re-entry and re-stimulation involved the West Henshaw property targeting the Grayburg formation at a depth of 2,850 feet.
The recompletion was successful and came online at an initial rate of 30 barrels of oil per day ("bopd") and now has stabilized at 15 barrels of oil per day ("bopd"). Management believes the production rates from this mature, long-life well to continue with less than 10% decline year on year ("YoY"). The remaining 68 shut-in wells that the company plans to re-enter have potential to yield similar results increasing the company's total daily production solely by re-entering shut-in wells.
"Our initial well re-entry has yielded promising results, validating our strategy to add sustainable marginal production through low-risk, low-cost recompletions," said Mehran Ehsan, CEO of Permex Petroleum. "Permex is poised to benefit from the timely ramp-up of our drilling programs given the macroeconomic tailwinds appearing to continue in the near term with WTI oil prices reaching over $90/bbl over the last week. We look forward to sharing additional results of our restimulation efforts in the months ahead as we work diligently to execute on our methodical approach to sustainable, long-term growth."
Permex's team will now move on to the next shut-in wells as well as activating the waterflood EOR candidates as part of the Company's developmental plans tiered towards 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.
CONTACT INFORMATION
Permex Petroleum Corp.
Mehran Ehsan
President, Chief Executive Officer & Director
(214) 459-2782
Scott Kelly
CFO, Corporate Secretary & Director
(778) 373-5421
Or for Investor Relations, please contact:
Brooks Hamilton
OILCF@mzgroup.us
CAUTIONARY DISCLAIMER STATEMENT:
Neither Canadian Securities Exchange, OTCMarkets nor their Regulation Services Providers (as that term is defined in their respective policies) accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE, OTC Markets nor their Regulation Services Providers (as that term is defined in the policies of either exchange) accepts responsibility for the adequacy or accuracy of this release.
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