About Permex Petroleum

Permex Petroleum Corporation, operates as an independent energy company, engages in the acquisition, exploration, development and production of oil and natural gas properties on private, state and federal land in the United States, primarily in the Permian Basin region of West Texas and Southeast New Mexico which includes the Midland - Central Basin and Delaware Basin. The company focuses on acquiring producing assets at a discount to market, increasing production and cash-flow through recompletion and re-entries, secondary recovery and lower risk infill drilling and development. The company owns and operates various oil and gas properties, as well as royalty interests in wells across 3,800 acres within the Permian Basin. Overall, the company owns and operates more than 11,700 net acres of production oil and gas assets. As of September 30, 2022, the company had one wholly-owned subsidiary, Permex Petroleum US Corporation (Permex U.S.), a corporation incorporated under the laws of New Mexico. The company owns and operates oil and gas properties in Texas (Breedlove 'B' Property, Pittcock North Property, Pittcock South Property and Mary Bullard Property), and Permex U.S. owns and operates oil and gas properties in New Mexico (Henshaw Property and the Oxy Yates Property). Oil and Gas Properties The company has 6,000 gross undeveloped acres and 4,800 net undeveloped acres. All of the company's undeveloped acreage is on its Breedlove property. The company has over 340 leases covering undeveloped acreage and less than 5% of these leases have an expiry date that is less than two years. Texas Properties Breedlove 'B' Clearfork Leases The company, through its wholly-owned subsidiary, Permex U.S., owns a 100% Working Interest and an 81.75% Net Revenue Interest in the Breedlove 'B' Clearfork leases located in Martin County, Texas. The Breedlove 'B' Clearfork properties situated in Martin County, Texas are over 12 contiguous sections for a total of 7,870.23 gross and 7,741.67 net acres, of which 98% is held by production in the core of the Permian Basin. In January 2022, the company began the pilot re-entry on the Carter Clearfork well #5. Pittcock Leases The Pittcock Leases are situated in Stonewall County. Stonewall County is in Northwest Texas, in the central part of the North Central Plains and consists of the Pittcock North property, the Pittcock South property and the Windy Jones Property. The Pittcock North property covers 320 acres held by production. The company holds a 100% working interest in the Pittcock North Property and an 81.25% net revenue interest. The Pittcock South property covers 498 acres in four tracts. The company holds a 100% working interest in the lease and a 71.90% net revenue interest. The Windy Jones Property consists of 40 acres. The sole purpose of the Windy Jones property is to provide waterflood to the offset wells being the Pittcock wells located east boundary of the Windy Jones Property. The company holds a 100% working interest in the Windy Jones Property and a 78.9% net revenue interest. Mary Bullard Property The company owns the Mary Bullard Property. The Mary Bullard Property is located in Stonewall County, Texas. The asset is situated on the Eastern Shelf of the Midland Basin in the central part of the North Central Plains. The Mary Bullard Property covers 241 acres held by production. The company holds a 100% working interest in the Mary Bullard Property and a 78.625% net revenue interest. New Mexico Properties Permex U.S., the company's wholly-owned subsidiary, owns the West Henshaw Property and the Oxy Yates Property. West Henshaw Property The West Henshaw Property is located in Eddy County, New Mexico. Eddy County is in Southeast New Mexico. The West Henshaw Property covers 1,880 acres held by production. The company holds a 100% working interest in the West Henshaw Property and a 72% net revenue interest. In January 2022, the company began the pilot re-entry on the West Henshaw well #15-3. 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 bopd and has stabilized at 15 bopd. In April 2022, the company began the re-entry on the West Henshaw well #6-10. 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 15 bopd and has stabilized at 10 bopd. Oxy Yates Property The Oxy Yates Property is located in Eddy County, New Mexico in the Delaware Basin. The Oxy Yates Property covers 680 acres held by production. The company holds a 100% working interest in the Oxy Yates Property and a 77% net revenue interest. Business Strategy The principal elements of the company's business strategy are to maximize ultimate hydrocarbon recovery from its assets by optimizing drilling, completion and production techniques and investigating deeper reservoirs and areas beyond its known productive areas; and pursue strategic acquisitions. Customers The company's oil production is being sold to Energy Transfer Partners and HollyFrontier at prices tied to Argus. The company's natural gas production is being sold to DCP Operating Company LP under Henry Hub gas spot prices. History Permex Petroleum Corporation was incorporated in 2017.