Permex confirms 27 MMboe on Permian basin assets

World Oil Staff February 21, 2023

(WO) – Permex Petroleum Corporation, an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties on private, state and federal land in the United States, has received an updated independent reserve evaluation from MKM Engineering. The report uses proved and probable reserve classifications that conform to the criteria established by the United States Securities and Exchange Commission.

Reserve evaluation

According to the reserve report, the net present value of net future revenues, (net of royalties, operating costs and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% of the total proved plus probable reserves is estimated at $428 million, or $221.53 per outstanding share.

The report found that Permex’s reserves comprised of 93% light oil and x7% natural gas. The evaluation found total proved reserves of 9.2 MMboe and PV10 value of $198 million, an increase of 51% Year-over-Year.

Permex reported a total probable reserve amount of 17.8 MMboe and PV10 value of $230 million, an increase of 46% Year-over-Year. The company also announced a total proved & probable reserves amount of 27 MMboe and PV10 value of $428 million, an increase of 48% Year-over-Year.

Summary of net oil and gas reserves and net present value of revenue:

Before Income Taxes as of September 30, 2022 - Forecast Prices and Costs


Reserves Mboe

NPV 10%
($ thousand)

NPV per BOE $/boe

Proved Developed Producing




Total Proved




Proved Plus Probable




  1. Natural Gas: 5.98 Mcf/boe
  2. Report used McDaniel's & Associates price forecast effective September 30, 2022

“This Reserve Report reconfirms the large reserves in place, and we remain focused on drilling and developing while redeploying the expected strong cash-flow from the completed wells back into drilling programs,” said Mehran Ehsan, President and CEO of Permex.

The Reserve Report uses prices calculated using oil and natural gas price parameters established by current guidelines of the SEC and accounting rules based on the unweighted arithmetic average of oil and natural gas prices as of the first day of each of the 12 months ended on the given date.

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