CONSERVATIVE PLAN AGGRESSIVE APPROACH LEGAL DISCLAIMER VALUE - - PowerPoint PPT Presentation
(CSE: OIL)(OTCQB:OILCF) Q2 2019 ASSETS A portfolio of low cost producing oil assets in Texas and New Mexico SCALE UPSIDE Horizontal leg conversion and lateral drilling programs in the San Andres formation SUSTAINABLE UPSIDE Low cost infill
ASSETS A portfolio of low cost producing oil assets in Texas and New Mexico SCALE UPSIDE Horizontal leg conversion and lateral drilling programs in the San Andres formation SUSTAINABLE UPSIDE Low cost infill drilling and secondary recovery
CONSERVATIVE PLAN – AGGRESSIVE APPROACH
Q2 2019
(CSE: OIL)(OTCQB:OILCF)
PERMEX IS A JUNIOR OIL & GAS COMPANY AT AN INFLECTION POINT OF GROWTH
(Owns & Operates on Private, State & Federal Land in Texas & New Mexico)
GEOGRAPHIC LOCATION SUMMARY OF OIL & GAS ASSETS
GEOGRAPHIC LOCATION SUMMARY OF OIL & GAS ASSETS
1.3 7.2 9.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 2016 2017 2018 (M)
2P Reserves (MBOE)
$34 $115 $142
$- $20 $40 $60 $80 $100 $120 $140 $160 2016 2017 2018 USD $mm
Present Value of 2P Reserves Discounted at 10%
PV of 2P Reserves discounted at 10% 4.2x Reserves Value Growth 2P Reserves (BOE) 7.1x Reserve Growth
80 240
50 100 150 200 Pre IPO July 2018
(Boepd)
Gross Production (boepd
Partnership
Since going public in May of 2018, Permex has achieved the following:
$115 $142 $0 $50 $100 $150 Pre IPO November 2018
$USD (M)
PV of 2P Reserves Discounted at 10% (US $M)
5,200 6,500 2,000 4,000 6,000 8,000 Pre IPO July 2018
(Acres)
Land Scale (acres)
$12,299 $28,934 $27,634 $50,726 $21,499 $17,247 $42,176 $93,997 $22,286
Peer Average: $38,062
$0 $20,000 $40,000 $60,000 $80,000 $100,000 Permex Petroleum Granite Oil InPlay Oil Leucrotta Exploration Delphi Energy Traverse Energy Lilis Energy Strategic Oil & Gas Altura Energy Enterprise Value per boepd (2018 Exit Production) Based on Independent PV Valuation Peer Average $372,040 $0.68 $4.01 $4.66 $5.07 $5.16 $5.21 $8.66 $12.82 $13.18
Peer Average: $7.35
$0.00 $4.00 $8.00 $12.00 $16.00 $20.00 $24.00 Permex Petroleum Granite Oil InPlay Oil Leucrotta Exploration Delphi Energy Traverse Energy Lilis Energy Strategic Oil & Gas Altura Energy Enterprise Value per 2P Reserves (BOE) Based on Independent PV Valuation Peer Average $20.67
(Horizontal well conversion candidate)
Break-even Oil Prices (WTI, $/bbl): U.S. Onshore Resource Plays
& Wright
Regional Map of San Andres Horizontal Drilling Permits (1) San Andres HorizontalDrillingPermits (Yoakum and Cochran) Since 2016
Total Measured Depth
Less than 6,000ft. More than 6,000ft. 30 29 28 75 76 77 90 89 88 PERMEX PETROLEUM CORPORATION Element Petroleum Op III,LLC Elk Meadows Resources LLC Forge Energy, LLC Riley Exploration OPGCo, LLC Ring Energy Inc. S teward Energy II, LLC Wishbone Texas OperatingCo, LLC All Other Drilling Permits: Operator Apache Corporation E R OperatingCompany
San Andres Horizontal Drilling Permits (Permian Wide) since 2012(2)
Jul16’
1H 2017 2016 2H 2015 1H 2015 2012-2014
Aug13’ Jan 15’ Feb 15’ Aug15’ S
S ept 15’ Oct 15’ Nov 15’ Oct 15’ Nov 15’ Dec 15’ Dec 16’ Dec 15’ Dec 15’ Dec 15’ Feb 16’ Mar 16’ Mar 16’ Apr 16’ May 16’ May 16’ Jun16’ Jul16’ Oct 16’ S ept 16’ S ept 16’ Jun16’ Oct 16’ Oct 16’ Dec 16’ Dec 16’ Dec 16’ Dec 15’ Jan 17’ Apr 17’ May 15’ Jun16’ Dec 14’ May 12’ Apr 17’ Jun17’ Feb 17’ Jul16’ S ept 16’ Feb 17’ Nov ‘16 Apr 16’
Sophisticated Investors Accumulating Acreage Positions in the San Andres - Trend is Accelerating
Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 100 50 150 Indexed Prices 25.2% 2.8% (3.6)% (11.3)% (18.6)% (28.5)% (40.6)% (54.4)%
REI Bakken Index Eagle FordIndex Midcon Index RockiesIndex Appalachia Index Midland Index Delaware Index
)3 2 2 0 9 8 7 7 7 5 6 7 9 8 8 0 9 8
E nergy Hunter Resources, Inc. Monadnock Resources R iley E xploration Group Ring E nergy Inc. S teward E nergy IILLCas of October 05, 2017 price indexed to 100 on (10/5/16)(1)
Ring Energy (REI) has Outperformed Delaware Basin Peers by ~25%
Recent Activity in the Region: Transacted and Implied San Andres Acreage Value
Target Acquisition Areas
BLUE SKY UPSIDE
(Horizontal Drilling - Waterflood EOR candidate)
Management Shares have all been voluntarily locked up for 3 years from the listing of the IPO (May 18, 2018):
On listing date: No release 6 months after listing date: 1/4 of the escrow securities 12 months after listing date: 1/5 of the remaining escrow securities 18 months after listing date: 1/4 of the remaining escrow securities 24 months after listing date: 1/3 of the remaining escrow securities 30 months after listing date: 1/2 of the remaining escrow securities 36 months after listing date: The remaining escrow securities Share Price $0.15 52 Week High – Low* $0.60 - $0.115 Basic Shares Outstanding 40.02M Options 3.24M
1
Warrants 4.81M
2
Fully Diluted Shares Outstanding 48.07M Market Cap. Basic $6.00M Market Cap. FD $7.21M Cash Balance / AR $250,000 Enterprise Value 5.75M Management % Ownership ~%12 *52 Week High - Low is based on closing price
Trading Symbol CSE: OIL
CANADIAN OFFICE: Suite 1290 625 Howe Street Vancouver, BC V6C 2T6 U.S. TEXAS OFFICE: 290 Cedar St, Abilene, TX 79601 U.S. NEW MEXICO OFFICE:
500 4th St. NW, Albuquerque, NM 87102 admin@permexpetroleum.com
Investor takeaway
$38 $35 $33 $33 $29 $24
Other U.S. (non-shale) Other U.S. (shale) Permian (Delaware) Permian (Central) Eagle Ford Permian (Midland)
U.S. LIGHT OIL*
$37 $40 $45 $49 $57 $60
Suncor Energy Inc. Cenovus Energy Inc. MEG Energy Inc. SAGD (solvents only) SAGD (with solvents) SAGD
OILSANDS
DELAWARE BASIN GEOGRAPHY DELAWARE BASIN, MULTI – STACKED PLAY
Pumpjack at Permex’s ODC San Andres Unit #70
The San Andres is the gift that keeps on giving. The formation has produced billions of barrels of oil over several decades and it is not finished yet.
2,000’ 3,000’ 4,000’ 5,000’ 6,000’ 7,000’ 8,000’ 9,000’ 10,000’
Option 1: Horizontal San Andres Dolomites (Unconventional Oil Play):