Operational Team Prepares for a Targeted Fall 2019 Horizontal Drilling Program
Vancouver, June 25, 2019 - Permex Petroleum Corp. (CSE: OIL) (OTCQB: OILCF) ("Permex" or the "Corporation") announces positive offset operator well results in conjunction with our operational team receiving confirmation from Working Interest partners for additional well location and possible horizontal drilling joint venture program.
Permex has continued its strategy of staying debt free in an environment where the burden of debt can drive good oil and gas companies out of business. The company has not only shown resilience in a down market, but patience since entering the highly prolific, low-cost Play in the Central Basin of west Texas. With a primary focus on the San Andres formation, we can see surrounding activity from various, well-known large cap offset operators, extending their investment and drilling of horizontal wells into this highly prolific formation. Permex continues to closely monitor the activity, and evaluate best course of action to start its own horizontal drilling while comparing notes against various drilling and completion techniques used by offset operators to maximize production and create efficiency within the wellbores.
Public production data from recent horizontal wells targeting the San Andres in the Central Basin have shown impressive results, which are associated with focused lateral landing and improved stimulation designs. Wells completed by Ring Energy such as Ellen B Peters 4H and Loki 2H, which surround our properties, came online at over 400 boepd or 80 boepd per 1000 foot lateral. Other operators such as Chevron USA, Occidental Petroleum Corp., Hess Corporation and Steward Energy continue to invest in the San Andres drilling and production in the region.
As a result, we are very pleased with the validation of our resource and acreage value on the backs of strong well results, and offset operator capital coming in from these large cap E&P's. While our pace has been slow, it has been calculated, and our blue sky drilling growth will be timed in accordance with our industry recovery and overall strategy to maximize shareholder value.
Permex's CEO, Mehran Ehsan, said, "In a fast paced industry such as ours, where operators have gone from profitable to filing for bankruptcy within months due to miscalculated risk taking, such as putting unnecessary debt on the books, we at Permex have been patiently accruing our land position, strategizing and now preparing for drilling programs as our industry embarks on a correction".
About Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCF) - www.permexpetroleum.com
Permex Petroleum Corp. 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 Corp. US Corporation is a licensed operator in both states; and owns and operates on Private, State and Federal land.
CONTACT INFORMATION
Permex Petroleum Corp.
Mehran Ehsan
President, Chief Executive Officer & Director
(604) 259-2525
Scott Kelly
CFO, Corporate Secretary & Director
(604) 259-2525
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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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