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Oil & Gas

Permex Petroleum completes acquisition of West Texas assets to grow company

The junior oiler now holds a 41.4% working interest in the ODC San Andres unit and 48% in the W, J. "A" Taylor lease

Permex Petroleum Corp (CSE:OIL) said it had completed the previously announced strategic acquisition of two producing assets in West Texas via its deal with Energy Properties 2000-1 LLC.

The junior oiler now holds a 41.4% working interest in the ODC San Andres unit and 48% in the W, J. "A" Taylor lease.

READ THE BIG PIC: Permex Petroleum primed for production growth in the Permian basin

Notably, the deal increases its Texas assets held by production (HBP) to 3,955 acres - an increase of 44%.

It also lifts the firm's 2P oil and gas reserves to around 9mln barrels of oil equivalent (boe) - an increase of 25.6%.

"We are very pleased to complete this highly anticipated acquisition integrating the ODC and Taylor leases into the long-term scale growth of the company," said Mehran Ehsan, the president and chief executive.

"This not only provides us access to work side by side with one of the world’s elite oil and gas operators, but will also allow us the potential for future synergies.

"This acquisition also comes at a time we feel crude oil is entering a more bullish cycle."

WATCH: Permex Petroleum acquisition increases held-by-production by a third

It also means Permex can expand its operational footprint in the region and have a working interest partnership on the field with oil major Occidental Petroleum Corporation (NYSE: OXY).

As reported previously, the total purchase price of around US$1.95mln in cash, includes over US$1.2mln in equipment on the field and the yard within the lease.

Offset operators to this property include Occidental Petroleum (NYSE:OXY), Devon Energy (NYSE:DVN), Hess Corporation (NYSE:HES), and Fasken Oil and Ranch.

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