Permex Petroleum Corporation (ticker: OIL) has completed its initial public offering of 8,135,500 common shares at a price of $0.50 per share for proceeds of $4,067,750.
The shares were listed on the Canadian Securities Exchange (CSE) on May 15, 2018 and started trading this morning (May 17, 2018) under the ticker “OIL.”
Returning shut in wells to production in the Midland, Permian, Delaware, Fort Worth basins
The company’s business model is to use proceeds from the offering to enhance and develop existing properties by returning shut in wells to production, initiating planned waterflood activities, re-entering and stimulating wells that indicate the most potential for production, infill drilling on shallow fields and asset acquisitions.
Properties
The company has approximately 5,200 net acres of HBP oil and gas assets in Texas and New Mexico. As of March 2018, the company is looking at 33 shut-in opportunities to be brought back online. The company also has 10 SWD wells, reducing water disposal fees and decreasing OPEX.
As of September 30, 2017, the company estimates that it has 5.876 million barrels of total proved plus probable oil reserves. As for gas, Permex estimates that it holds 7,709 MMcf of total proved plus probable reserves.
