Permex Petroleum Reports Significant Revenue Decline and Net Loss in Q4 2023

Permex Petroleum Corporation reported significant financial changes for the three months ended December 31, 2023, compared to the same period in 2022. Revenues plummeted to $53,115, a stark decline from $221,942 in the previous year, primarily driven by a decrease in oil and gas sales, which fell from $213,754 to $47,651. The company’s net production also decreased, averaging 10 barrels per day compared to 39.38 barrels per day in the same quarter of the prior year.

Despite the drop in revenue, total operating expenses decreased to $806,294 from $1,555,975, contributing to a reduced net loss of $751,881, down from $1,309,191 in the same quarter of 2022. The basic and diluted loss per share improved to $(1.36) from $(2.71) year-over-year.

The company’s cash position deteriorated, with cash decreasing to $32,000 as of December 31, 2023, from $82,736 at the end of September 2023. Total current assets also fell to $189,713 from $288,416, while total assets decreased slightly to $10,734,115 from $10,941,747. The accumulated deficit increased to $(12,952,257) from $(12,200,376), and total stockholders’ equity declined to $6,416,911 from $7,168,792.

Permex Petroleum has been actively managing its financial challenges, including a working capital deficiency that grew to $3,792,894. The company raised $1,365,000 through convertible debentures, which are currently in default, and received additional subscription proceeds of $2,350,000. Future financing efforts are underway, with negotiations for a debt restructuring plan and a private placement of convertible debenture units announced for gross proceeds of up to $20,000,000.

Strategically, the company has focused on its oil and gas properties in Texas and New Mexico, with plans to restart drilling and development activities in Q4 2024, contingent on securing additional funding. The company has also undergone management changes, appointing Bradley Taillon as CEO in May 2024, following the transition of former CEO Mehran Ehsan to a new role.

Permex Petroleum's operational challenges are compounded by a cease trade order issued by the British Columbia Securities Commission due to unfiled financial statements, which was later revoked. The company continues to face substantial doubt regarding its ability to continue as a going concern within the next year, necessitating careful financial management and strategic planning.