Permex Petroleum Corporation Reports Revenue Increase to $126,781 in Q1 Fiscal 2025

Permex Petroleum Corporation reported a significant increase in revenue for the first quarter of fiscal 2025, with total revenues reaching $126,781, compared to $53,115 in the same period last year. This growth was primarily driven by oil and gas sales, which surged to $123,215 from $47,651 year-over-year. However, the company also faced increased operating expenses, totaling $1,576,277, up from $806,294 in the prior year, leading to a net loss of $1,828,721, compared to a loss of $751,881 in the same quarter of 2023.

The financial performance reflects a strategic shift as Permex resumed production at its Breedlove field, which had been shut-in due to financial constraints. The company successfully brought back online all 12 previously producing wells, achieving an average gross production of 30.40 barrels of oil per day in December 2024. Despite this operational success, the lease operating expenses rose sharply to $428,268, attributed to the costs associated with restarting production and extensive maintenance.

In terms of organizational changes, Permex appointed BaShara (Bo) Crystelle Boyd to its Board of Directors and Richard Little as the Non-Executive Chairman in December 2024. Additionally, the company completed a private placement of convertible debenture units, raising gross proceeds of $4,276,389, which will be used for potential acquisitions, drilling, and general working capital. This financing is crucial as the company continues to address its working capital deficiency, which stood at $5,934,270 as of December 31, 2024.

Operationally, Permex currently operates 97 oil and gas wells across more than 11,700 net acres, including 66 shut-in opportunities. The company holds royalty interests in 73 wells and five permitted wells within the Permian Basin. The average production costs per unit for the quarter were reported at $174.74 per barrel of oil equivalent (Boe), significantly higher than the previous year's $99.39/Boe, reflecting the challenges of ramping up production.

Looking ahead, Permex anticipates needing substantial additional funding to address its working capital issues and resume full production operations. The company has budgeted approximately $3 million in operating expenses and $6.5 million in capital expenditures for the next 12 months, with plans to finance these through equity or debt offerings. However, the company acknowledges that its ability to continue as a going concern is contingent upon successfully raising these funds and managing its operational costs effectively.