- Permex Petroleum (OIL) is releasing the latest results from the re-completion of a previously shut-in oil well
- The well is on its West Henshaw property in Eddy County, Mexico
- The Vancouver-based junior oil and gas company says the well represents its second successful re completion
- Its West Henshaw Property contains 69 shut-in wells overall
- The re-completion of the well was successful and came online at an initial rate of 15 barrels of oil per day and now has stabilized at 10 barrels of oil per day
- Permex Petroleum is down 6.12 percent, trading at $0.23 at 12:45 p.m. ET
Permex Petroleum (OIL) has released the latest results from the re-completion of a previously shut-in oil well.
The well is on its West Henshaw property in Eddy County, Mexico.
The Vancouver-based junior oil and gas company says the well represents its second successful well re-completion this year.
Its West Henshaw Property contains 69 shut-in wells overall.
The company’s re-entry and re-stimulation programs involving the wells on the property began in January 2022, and are targeting the Grayburg formation at a depth of 2,850 feet.
The re-completion of the well was successful and came online at an initial rate of 15 barrels of oil per day and now has stabilized at 10 barrels of oil per day.
Management believes production rates from the mature, long-life well, will continue with less than a 5 percent decline year on year.
The remaining 67 shut-in wells that the company plans to re-enter may have the potential to yield similar results increasing its total daily production solely by re-entering shut-in wells.
“We continue to ramp up production through low-risk, low-cost opportunities, as reflected by the second successful well recompletion since beginning our pilot re-entry in January,” said Permex Petroleum CEO Mehran Ehsan.
“With very attractive well economics of $35.86/barrel in operating net back at West Texas Intermediate (“WTI“) oil prices at $65/barrel, and with current WTI oil prices nearing $100/barrel on a trailing 50-day moving average, we believe Permex is capitalizing on this strong market. We also believe that we are now well capitalized with our recently closed US$7.5 million private placement and are prudently deploying capital to aggressively, and methodically, execute our strategy to drive sustainable growth for our stakeholders.”
Permex Petroleum is down 6.12 percent, trading at $0.23 at 12:45 p.m. ET.
