Permex Petroleum Corporation (CSE: OIL) Enters Operating Rights Arrangement in the Permian Basin

2 min read | January 14, 2025 06:25 PM AEDT | By Team Kalkine Media

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Permex Petroleum Corporation (CSE: OIL) Enters Operating Rights Arrangement in the Permian Basin — Image source: shutterstock

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Highlights

Permex enters an operating rights agreement over 19 wells in the Permian Basin with a private operator.

The arrangement grants Permex up to $75,000 USD per month based on production and commodity prices.

The deal creates an immediate new revenue stream and leverages Permex's experienced operations team.

Permex Petroleum Corporation (CSE:OIL) is excited to announce a new arrangement with a private oil and gas operator concerning assets located in the highly productive Permian Basin. Under this agreement, Permex will assume operating rights for 19 wells in exchange for a monthly operating fee of up to $75,000 USD, which will vary depending on production volumes and prevailing commodity prices.

Arrangement Details
The arrangement allows Permex to oversee the operations of 19 wells within the Permian Basin, one of the most prolific oil-producing regions in North America. The monthly operating fee will be based on the level of production and the current market prices for oil and gas, providing a flexible and scalable revenue model for the Company.

"We are very excited to enter into this arrangement," said Brad Taillon, Permex's President and Chief Executive Officer. "By leveraging our experienced operations team, we can create an immediate new revenue stream for the Company by taking over field operations for an offset operator. This is a significant step forward in our growth strategy."

New Revenue Stream and Growth Opportunities
Richard Little, Permex's Chairman, also expressed his enthusiasm about the deal, noting, "We are pleased with the arrangement that we have been able to negotiate, which provides a new source of income for the Company that should have a meaningful impact on the bottom line. This agreement reinforces our strategy of generating revenue while enhancing our operational expertise in the Permian Basin."

With the new operating rights, Permex aims to optimize production and operational efficiency, benefiting from its expertise in the region. This deal aligns with the Company's broader goals of sustainable growth through low-cost asset development and value-creating partnerships.

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