Permex Petroleum (OILCF) – June-Quarter Results Reflect Production Delays


Wednesday, August 23, 2023

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Permex reported a loss of $0.74 per share as drilling delays put the company behind our original production schedule. Permex reported $157,019 in revenues for the fiscal third quarter ended June 30, 2023, a 43% decline from third quarter revenues last year. Permex receives sales from ownership interest in 78 wells in the Permian Basin as well as royalty interests in 73 wells. It completed its first well in the Breedlove Field (a transformative acquisition) in January and is working to turn the well into a horizontal well. We had hoped the well would be producing and Permex would have started on a second well by now.

The extension and repricing of a warrant program and subsequent exercises resulted in 273,410 addition shares and generated $688,092 in net proceeds. The number of fully diluted shares including warrants is now more than 3 million versus basic shares of less than 2 million. The proceeds, along with a $847,000 positive change in working capital, helped offset a $865,000 net loss in operating cash. Permex’s cash position at the end of the quarter was $764,386, not enough to drill a well. The balance sheet remains debt free. Management shelved plans for an equity offering and uplisting. Liquidity remains an issue.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Leave a Reply