(CSE: OIL)(OTCQB:OILCF) Q1 2020 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 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation Actual production may not be as projected
LEGAL DISCLAIMER Presentation and Reader Advisory This presentation includes certain statements that may be deemed forward - looking Readers are cautioned that this list of risk factors should not be construed as statements under applicable securities laws. All statements in this presentation , other exhaustive. Although Permex believes the expectations expressed in such forward - than statements of historical facts, that address future events or developments that looking statements are based on reasonable assumptions, such statements are not Permex Petroleum Corporation (“Permex” or the “Corporation”) expects are forward - guarantees of future performance and actual results or developments may differ looking statements. Forward - looking statements are frequently characterized by materially from those in the forward - looking statements. Investors should not place words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" undue reliance on these forward - looking statements, which speak only as of the date and other similar words, or statements that certain events or conditions "may" or of t his presentation. Other than as required under applicable securities laws, Permex "will" occur. In particular, forward looking statements in this presentation include, does not assume a duty to update these forward - looking statements. but are not limited to, statements with respect to the Corporation’s exploration and development program on its oil and gas leases, the anticipated stock exchange listing This presentation and, in particular the information in respect of the Corporation's and initial public offering of the Corporation, reserves estimates and values, enterprise prospective future net income and operating netback, may contain information value, operating netback, pricing assumptions, future income, expected production, deemed to be "future-oriented financial information" or a "financial outlook" expected development costs, future acquisitions and future capital expenditures. (collectively, "FOFI") within the meaning of applicable securities laws. The FOFI has been prepared by management to provide an outlook of the Corporation's activities Forward - looking statements are based on the opinions and estimates of and results and may not be appropriate for other purposes. The FOFI has been management at the date the statements are made, and are subject to a variety of risks prepared based on a number of assumptions including the assumptions discussed and uncertainties and other factors that could cause actual events or results to differ above. The actual results of operations of the Corporation and the resulting financial materially from those anticipated in the forward - looking statements. Some of the results may vary from the amounts set forth herein, and such variations may be risks and other factors could cause results to differ materially from those expressed in material. The Corporation and management believe that the FOFI has been prepared the forward - looking statements include, but are not limited to: general economic on a reasonable basis, reflecting management's best estimates and judgments. FOFI conditions in Canada, the United States and globally; industry conditions, including contained in this presentation was made as of the date of this presentation and the fluctuations in commodity prices; governmental regulation of the oil and gas industry, Corporation disclaims any intention or obligations to update or revise any FOFI including environmental regulation; geological, technical and drilling problems; contained in this presentation, whether as a result of new information, future events unanticipated operating events; competition for and/or inability to retain drilling rigs or otherwise, unless required pursuant to applicable law. and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in Information and facts included in this presentation have been obtained from publicly market prices for commodities; liabilities inherent in oil and gas exploration, available and published sources and where appropriate those sources have been cited development and production, marketing and transportation; changes in tax laws and in this presentation. Permex does not assume a duty to independently verify publicly incentive programs relating to the oil and gas exploration industry; loss of markets; available an d published sources of information provided by arms length third parties. currency fluctuations; imprecision of reserve estimates; unexpected decline rates in wells; and wells not performing as expected. CSE: OIL OTCQB: OILCF | 2 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation For discussion purposes only and does not constitute an offer to sell – Past performance is not indicative of future results – Actual production may not be as projected
VALUE PROPOSITION PERMEX IS A JUNIOR OIL & GAS COMPANY AT AN INFLECTION POINT OF GROWTH (Owns & Operates on Private, State & Federal Land in Texas & New Mexico) GEOGRAPHY & GEOLOGY STRUCTURE TIMING o Acquired over 6,500+ acres at a o Permian Basin of West Texas & o ~40M shares outstanding discount during downcycle (2015 – South East New Mexico 2018) o Approximately 13% Management o Formations include the San Andres, & Insider Ownership o Paid approximately $2,000/acre BoneSpring, and Wolfcamp o Zero debt on balance sheet o Currently land values in this area as high as $95,000/acre CSE: OIL OTCQB: OILCF | 3 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation For discussion purposes only and does not constitute an offer to sell – Past performance is not indicative of future results – Actual production may not be as projected
PORTFOLIO OF HIGH QUALITY ASSETS GEOGRAPHIC LOCATION SUMMARY OF OIL & GAS ASSETS GEOGRAPHIC LOCATION SUMMARY OF OIL & GAS ASSETS 50 6,500 + Over 6,500 net acres 50 shut-in opportunities of held by production to be brought back oil and gas assets in online (“PDNP”) (1) Texas & New Mexico 32 Salt water Disposal Over 145 oil and (“SWD”) (3) wells 143 + 32 gas wells owned eliminating water and operated by disposal fees and corporation decreasing OPEX 2 Water Supply Wells 59 2 59 producing Oil & (“WSW”) (4) allowing for Natural Gas wells waterflood secondary (“PDP”) (2) recovery (“EOR”) (1) PDNP stands for Proved Developed Non-Producing reserves. 3. A salt water disposal well is a disposal site for water collected as a by-product of oil and gas production. (2) PDP stands for Proved Developed Producing reserves. 4. A hole in the ground drilled to obtain water for the purpose of injecting water into an underground formation in connection with the production of petroleum or natural gas. CSE: OIL OTCQB: OILCF | 4 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation For discussion purposes only and does not constitute an offer to sell – Past performance is not indicative of future results – Actual production may not be as projected
2019 RESERVES SUMMARY PRE-TAX PRESENT VALUE $ Amounts in USD OIL (MBBL) GAS (MMCF) FUTURE NET INCOME (1) (10%) Proved Developing Producing 637 76 $33,366,420 $12,228,960 Developed Non-Producing 272 17 $12,712,270 $6,553,770 Undeveloped 3,855 395 $162,692,200 $55,876,030 Total Proved 4,779 500 $209,224,520 $74,921,900 Total Probable 3,702 7,506 $160,046.340 $69,663,260 Total Proved + Probable 8,481 8,006 $369,270,860 $144,585,160 FINDING & DEVELOPMENT OPERATING NET BACK @ $45 WTI RECYCLE RATIO COST (per bbl) prices (per bbl) $8.95 $23.16 2.6x (1) Future net income is estimated using forecast prices and costs. Future net income has been presented on a before tax basis. Estimated values of future net income disclosed herein do not represent fair market value. CSE: OIL OTCQB: OILCF | 5 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation For discussion purposes only and does not constitute an offer to sell – Past performance is not indicative of future results – Actual production may not be as projected
RESERVES – GROWTH ORIENTED Present Value of 2P Reserves discounted at 10% 2P Reserves (MBOE) $180 USD $mm 12.0 $160 $140 $145 10.0 9.8 $120 $142 8.0 (M) $100 9.0 $115 $80 6.0 $60 7.2 4.0 $40 $34 2.0 $20 1.3 $- 0.0 2016 2017 2018 2019 2016 2017 2018 2019 2P Reserves (BOE) 7.5x Reserve Growth PV of 2P Reserves discounted at 10% 4.4x Reserves Value Growth Source: Corporation Disclosure CSE: OIL OTCQB: OILCF | 6 Confidential – Do not duplicate or distribute without written permission from Permex Petroleum Corporation For discussion purposes only and does not constitute an offer to sell – Past performance is not indicative of future results – Actual production may not be as projected
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