Permex Petroleum Corporation reported significant financial challenges in its 10-Q filing for the three and nine months ended June 30, 2024. Total revenues for the three months were $2.7 thousand, a stark decline from $157.0 thousand in the same period of 2023. For the nine-month period, revenues fell to $86.7 thousand from $559.6 thousand year-over-year. The company attributed this decline primarily to a lack of oil and gas sales, with no revenue generated from crude oil and natural gas during the latest quarter.
Operating expenses also decreased, totaling $664.3 thousand for the three months ended June 30, 2024, down from $1.1 million in the prior year. For the nine months, operating expenses were $1.9 million, significantly lower than $3.9 million in the same period of 2023. This reduction was driven by lower lease operating expenses and general administrative costs, which were impacted by a strategic scale-back in marketing and investor relations activities.
Despite the decrease in expenses, the company reported a net loss of $1.2 million for the three months ended June 30, 2024, compared to a loss of $909.6 thousand in the same quarter of 2023. For the nine-month period, the net loss improved to $2.4 million from $3.3 million in the previous year, indicating a reduction in overall losses despite the revenue decline.
The company’s cash position showed some improvement, with cash increasing to $428.4 thousand as of June 30, 2024, up from $82.7 thousand at the beginning of the period. This increase was bolstered by $1.4 million in net cash provided by financing activities, including proceeds from convertible debentures. However, the working capital deficiency rose to $4.5 million, highlighting ongoing liquidity challenges.
Strategically, Permex has undergone leadership changes, appointing Bradley Taillon as CEO in May 2024, following the resignation of former CEO Mehran Ehsan. The company has also faced regulatory challenges, including a cease trade order issued in April 2024 due to unfiled financial statements, which was lifted in September 2024 after compliance was achieved.
The company continues to focus on its oil and gas properties in Texas and New Mexico, with plans to resume drilling and development activities in the fourth quarter of 2024, contingent on securing additional funding. As of June 30, 2024, Permex holds interests in various oil and gas properties, including producing and shut-in wells, and has plans to convert proved undeveloped reserves into production within the next five years.
About Permex Petroleum Corp
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