Permex Petroleum Reports Revenue Surge but Faces Increased Net Loss in Latest Quarter

Permex Petroleum Corporation reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated total revenues of $295,906, a substantial increase from $30,870 in the same quarter of the previous year. This growth was primarily driven by oil and gas sales, which rose to $122,827 from $27,815 year-over-year. For the six months ending March 31, 2025, total revenues reached $422,687, compared to $83,985 in the prior year. Despite this revenue growth, the company reported a net loss of $1,313,137 for the quarter, up from a loss of $415,355 in the same period last year, largely due to increased operating expenses.

The company’s operational metrics also reflected notable changes. Permex Petroleum's average production for the quarter was 26.35 barrels of oil per day, a significant increase from 6.04 barrels per day in the same quarter of the previous year. The increase in production was attributed to the resumption of operations at the Breedlove field, which had been shut in due to financial constraints. The company also reported a marked improvement in production costs, with average costs per barrel of oil equivalent (Boe) dropping to $22.40 from $115.31 in the same quarter of the previous year.

Strategically, Permex Petroleum has made several key moves, including the completion of a private placement of convertible debenture units that raised gross proceeds of $4,276,389. This financing is intended to support ongoing operations and development activities. Additionally, the company entered into an agreement to operate 19 wells in the Permian Basin, which is expected to generate up to $75,000 per month based on production revenue. However, the company continues to face challenges, including a working capital deficiency of $7,228,821 as of March 31, 2025, compared to $5,857,870 at the end of the previous fiscal year.

Looking ahead, Permex Petroleum's management has indicated that the company plans to resume full field operations and invest in additional oil and gas production activities, contingent on securing necessary financing. The company has budgeted approximately $2 million in operating expenses and $6.5 million in capital expenditures for the next 12 months. However, there is substantial uncertainty regarding the company's ability to raise the required funds, which could materially impact its operations and financial condition. The company’s ability to continue as a going concern remains in question, as it has not yet achieved profitable operations and has incurred significant losses since its inception.