logo-loader
viewPermex Petroleum Corporation

Permex Petroleum started at 'Buy' at Fundamental Research ahead of accelerated growth plans

Fundamental Research has put a target on the shares of C$1.46

1531935936_noddingdonkey2.jpg
Permex is focused on the Permian basin of the US and has big plans to grow k yer se

Junior oiler Permex Petroleum Corp (CNSX:OIL) has had a 'buy' rating bestowed upon it by Fundamental Research.

It puts a target on the shares of C$1.46, which is a hefty distance from where they stand now at around C$0.44.

READ: Permex Petroleum started at Buy at Fundamental Research ahead of accelerated growth plans​

The company has not been standing still since completing its IPO (initial public offering) in May, raising over C$4mln gross, and has been on an acquisition spree since. It has no debt.

Permex’s current portfolio includes eight producing properties, mainly focused on light oil,  including six in Texas, and two in New Mexico, Fundamental Research points out.

The firm has identified the potential for at least 59 new wells on the properties. The current gross daily production is 198 barrels of oil equivalent per day.

Fundamental says that if production remains flat at 122boepd (barrels of oil equivalent per day net) in 2018, it estimates that the firm can generate revenues of C$2.74 million, with a net loss of C$1.18mln.

It says its forecasts are very 'conservative' as Permex's management’s 2018 exit production estimate is for between 400 and 500boepd (gross).

For 2019, after the horizontal development of leases, it is between 3,000 and 4,000boepd (gross).

"We will adjust our forecasts as the company announces further details on its development plans," it adds.

Quick facts: Permex Petroleum Corporation

Price: 0.045 CAD

CSE:OIL
Market: CSE
Market Cap: $1.8 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Permex Petroleum Corporation named herein, including the promotion by the Company of Permex Petroleum Corporation in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Permex Petroleum announces non-brokered private placement financing to raise...

Permex Petroleaum (CSE:OIL) CEO Mehran Ehsan joined Steve Darling from Proactive Investors Vancouver to discuss Permex's fund raise of 1.5 million in a non-brokered private placement. The capital will be used to start new waterfloods, bringing online shut-in wells, and general working...

on 01/11/2019

2 min read