Vancouver, British Columbia--(Newsfile Corp. - February 24, 2021) - Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCF) ("Permex" or the "Company") is pleased to announce the purchase of producing royalty interests in (15) horizontal oil and natural gas wells located in Atascosa and La Salle Counties, Texas.
These fields are located within the Eagleville field of the Eagle Ford Shale. They have produced an average of 7,248 barrels of oil per day ("BOPD") and 9.06 million cubic feet of gas per day ("MMCFPD") over the past five (3) month reported period from completion intervals of 10,270 - 20,633 feet. The operator on file is and will continue to be Chesapeake Operating LLC.
"These additional royalty interest acquisitions are in line with our new business strategy to diversify outside of traditional working interest ownership and operatorship which the company was focused in the past. Furthermore, an additional benefit from these two acquisitions is the geographical and target formation diversification which they offer. They are located outside of the Permian Basin which historically sees larger initial production but steeper decline curves," said Mehran Ehsan, President and CEO. "The fields produce at lower initial rates than our Permian Basin assets, however they will carry a lower decline curve over the long run, as such they complement our Permian assets."
Offset activity maps show the number of wellbores being permitted and drilled in the region has increased over the past several months as prices recover.
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